Respuesta :
People in poverty depend on their money for survival. As a result, they are unable to invest in their own human, physical, and mental well-being. As a result, the economy receives less investment, which lowers employee productivity.
How does poverty affect the economy?
Due to credit restrictions, the underdeveloped financial sector, disparity in income and wealth, and other factors, poverty has a direct negative impact on economic growth. Increased uncontrolled population growth is another factor contributing to poverty.
The potential cost of missed output, the cost of providing welfare, and the internal and external expenses associated with exclusion from mainstream economic activity are just a few of the economic costs that poverty generates. These expenses include of those related to crime, unemployment, and bad health.
Therefore, people in poverty depend on their money for survival. As a result, they are unable to invest in their own human, physical, and mental well-being. As a result, the economy receives less investment, which lowers employee productivity.
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