Letter to the Editor Wall Street Journal Slow Economic Growth Affects the Efforts to Fight Poverty

In: Business and Management

Submitted By zhangreqing
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Letter to the Editor Wall Street Journal
Slow Economic Growth affects the efforts to fight poverty
Dear Sir,
As a business student, the article by McKay (2016), Slow Growth Clouds Fight Against Poverty caught my full attention. This is because I found the article to be very informative and it enlightened me so much. I therefore write you to concur with the comments of the writer.
I want to point out some of the points that I found very informative in the article. It is true that slow growth of the economy affects the fight against poverty and that the impact that the growth of the economy has on poverty has been documented. Kasen (2008) argues that the factors that really impact the efforts of poverty eradication lie in the economic inequalities that are present in the economy. This is because one cannot measure the poverty that is present in the developed economies in the same manner as measuring the poverty level that is present in the developing economies. The main reason as to why one cannot use the same measurement indicators in the two economies is because the definition about poverty varies in the two economies.
When there is a slow growth in the economy, the numbers of people that will benefit from it are just a few individuals who are able to meet their needs despite the performance of the economy. The people who are really affected by the slow growth of the economy are the poor people. Efforts to eradicate poverty in a slow economy are hindered because the state needs to allocate resources to the provision of the essential services that are needed by these people.
In conclusion therefore, economic growth determines the level at which the government strives to eradicate poverty. It does not necessarily mean that the performance of the economy has a direct relationship with the efforts to eradicate poverty.…...

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