Title: Cycle of poverty - Wikipedia
Headings: Cycle of poverty
Cycle of poverty
Contents
Causes of the cycle
Chronic general poverty
Non-circular causes of poverty
Factors maintaining personal poverty
Internal and external factors sustaining poverty
Systemic factors
Emotional factors – bias
Decision-making
Intergenerational
Medical factors – mental illnesses
Summary
Choices and culture
Discrimination and concentration
Generational poverty
Early childhood adversity and basic needs stressors contributing to the cycle of generational poverty
Family background
Lack of jobs due to deindustrialization
Effects of modern education
Culture of poverty
Life shocks
Tracking in education
Theories and strategies for breaking the cycle
General approaches
Two-generation poverty alleviation approach
Effects on children
Developing world
See also
References
External links

Content: Problems with the means of production : Lack of or poor quality infrastructure
Widespread lack of skills needed for employment (including literacy) or high-wage employment
Lack of equipment and automation that would boost productivity
Economic mismanagement, such as regulatory failure
Widespread corruption
Inability of the government to guarantee stable market conditions, including physical security and enforceable property rights
High burden of disease
Barriers to international trade, possibly including international sanctions
Non-circular causes of poverty
Generally poor economic conditions can also be due to temporary causes, which might not result in a "cycle of poverty" if the economy recovers thereafter. Temporary economic problems can be caused by: Recession (for which there are many causes) and the lower-activity portion of the business cycle
Climate change
Disasters
War, whether through direct destruction or general funding burden
Natural disasters, including storms, drought, and earthquakes
Epidemics
Famine
Anthropogenic disasters, including accidents
A one-time event, whether affecting the economy in general or personal in nature, can push a given person or family into poverty, after which they enter the "cycle of poverty" which is difficult to escape. Examples of personal events that can have a negative economic impact include: The loss of a job or failure of a family-owned business
A health issue, which can result in lost wages, a permanent disability, or medical debt in countries without free universal health care
The death of a family member
An unplanned pregnancy
Short-term financial mismanagement of personal savings or debt
A breakup or divorce, if alimony does not compensate for the loss of one partner's income
A foreclosure or eviction
An automobile collision or other loss of a vehicle needed to get to work
Commission of a crime that results in a criminal record and difficulty obtaining work
Incarceration that results in loss of economic assets and social networks
Factors maintaining personal poverty
Once poor, people can experience difficulty escaping poverty because many things that would allow them to do so require money they don't have, such as: Education and retraining with new skills
Child care which would enable a single parent or second parent to work or take classes
Transportation to a distant job
Migration to an area with better economic opportunities
Starting a new business, which might require market research, technical assistance, and startup funding
Obtaining land for subsistence farming
Cure a health condition that prevents work, including diseases of poverty which don't affect people outside of the "cycle of poverty"
According to the United States Census, in 2012 people aged 18–64 living in poverty in the country gave the reason they did not work, by category: 31% - Ill or disabled
26% - Home or family reasons
21% - School or other
13% - Cannot find work
8% - Retired early
Some activities can also cost poor people more than wealthier people: Rent – If unable to afford the first month's rent and security deposit for a typical apartment lease, people sometimes must live in a hotel or motel at a higher daily rate. Food
If unable to afford an apartment with a refrigerator, kitchen, and stove, people may need to spend more on prepared meals than if they could cook for themselves and store leftovers.