Definition of poverty trap:
Situation created income-related tax laws and social security benefits that prevent people from emerging from social addiction. If these people strive to earn more, they enter higher tax brackets and end up with even lower disposable income than before. After trying several times, they usually give up and can accept the situation as their fate.
A situation where an increase in a person's income is offset by a consequent loss of state benefits, which does not make him any better.
Many factors contribute to a poverty trap, including limited access to credit and capital markets, extreme environmental degradation (exhausting the potential for agricultural production), corrupt governance, capital flight, poor education systems, disease ecology, lack of public health care, war and poor infrastructure.
A poverty trap is a mechanism that makes it very difficult for people to escape poverty. A poverty trap is created when an economic system requires a significant amount of capital to earn enough to escape poverty. When people lack this capital, they may also have a hard time acquiring it, creating a cycle of self-sustaining poverty.
How to use the poverty trap in a sentence?
- At the same time, however, the city has a strong and seemingly intractable core of families trapped in poverty, living on social benefits, without training or suitable for the job market.
- A poverty trap is not simply a lack of financial means. It is created due to a combination of factors, such as access to education and health care, which work together to support a person or family in poverty.
- Famed economist Jeffrey Sachs argued that public and private investment must work together to eradicate the poverty trap.
- A poverty trap refers to an economic system in which it is difficult to escape poverty.
Meaning of the poverty trap and definition of the poverty trap