What roles does the poor play in the Economy?

[bakasabo]

High numbers of poor people is an indicator that shows how government does their job in one country. High number of poor people shows government priority in creating country’s budget. However, there are moments when poor isnt an indicator to show how good or bad government works. Country by itself can be poor; for example they might now have any recourses except land or labor force.

[DrBeer]

Poverty... This word is often found here under "economics. Poverty is.... Hmm. What is poverty to begin with ?
Not enough money ? Destiny ? Upbringing? Something else?
Many people will say "not enough money." But I say "not enough money" is the consequence of other reasons. And those reasons are the subject of a separate topic. Those who wish can create, we will discuss.

But the place of the poor in the economy is a topic for discussion. I'm going to write things that not everyone will like, but in my opinion this is true. Firstly, we must accept the fact that the poor is a layer of the population that exists in all countries, the difference is only in the "thickness" of this layer. When this layer is more than 50%, it means that there is a systemic problem, the level of the state. When this layer is almost invisible - it means a high standard of living, and "but some are unlucky". And the classics - when this layer exists, but not 50% and not 0.1%.
And this "classic" variant is probably worth talking about. In an "average" country, with an "average" level of poverty, this layer consists of people with different fates, but one outcome: they either lost or failed to reach the level of the "middle class. What is their place in the economy ?
If we talk about the "positive" points: This is all the "dirty work" that a resident with an average income does not want to do, i.e. work that must be done but costs "pennies". Another place in the economy is "social sanitation" - this is the collection and recycling of garbage, waste and other things.
The negative component is:
- social ballast for the national budget (consumers of social programs, not creating income, products, services and taxes),
- as a rule, grassroots mass crime, illegal trade (drugs, stolen goods, ....) .
- And they are the most unprofitable audience for the economy and the market. They do not consume constantly and a lot, because they do not have "extra" money.

This does not sound very nice - but in general terms - they are ballast for the rest of the population, and an ineffective "layer" for the economy and market of the country.

[CryptoHeadlineNews]

In what ways have the people living in poverty impacted in the economy?
Share your ideas on the importance of the poor masses in economy sustainability.

Even the world's biggest countries such as America and Britain also have poor people, as they can never be eradicated from any society but just that the level of poverty in each country varies from one another, as they play a vital role in making life comfortable for the rich and middle-class citizens and themselves by creating an enabling environment for them all, as they are the ones who do the dirty jobs, (i.e petty traders, cleaning jobs, drivers, security guard & e.t.c).

[Oasisman]

In what ways have the people living in poverty impacted in the economy?
Share your ideas on the importance of the poor masses in economy sustainability.

This could've been specified on what was being mean by living in poverty and being poor?
Are these people employed or not? Are they earning below the minimum wage or struggling to get a good job?
Because if poverty means unemployment, then I guess these people has no contribution to the economy as they are only after the governments benefit, so they are just another people fed by the tax payers.
If they are employed but with minimum or below minimum wage, then they are basically contributing to the economy as the product they've produced will be a subject for tax deductions and the product they buy in the supermarket will also have a tax, just like what the people in the lower and middle class had, except that people who earned more will have to had a tax on their payroll.

[xSkylarx]

In what ways have the people living in poverty impacted in the economy?
Share your ideas on the importance of the poor masses in economy sustainability.

Even the world's biggest countries such as America and Britain also have poor people, as they can never be eradicated from any society but just that the level of poverty in each country varies from one another, as they play a vital role in making life comfortable for the rich and middle-class citizens and themselves by creating an enabling environment for them all, as they are the ones who do the dirty jobs, (i.e petty traders, cleaning jobs, drivers, security guard & e.t.c).

The classification of poor in other countries is very different per country. For example, in a 1st world country compared to a 3rd world country, because of the cost of living in that country, they are struggling and can't buy food, but they are earning huge if you put them in a poor country. Whereas in a 3rd world country, it is really poor, but they can do things that can still help them survive, like growing their own crops or going fishing, as most of the 3rd world country has crops and rivers where you can catch fish, but still they are both doing the dirty jobs.

[Stella Mese]

people who live in poverty mean they don't get a large income in their life, or can be said to have no income in their life such as unemployment, or it could be people who earn but their expenses are greater than their income.

so the role of the poor in the economy in my opinion is where the situation is below. but if life is in a state of poverty, it means it's time to build the economy and learn from failed experiences.

[mamesso]

The increase in the poverty rate due to income below the limit, one of the causes of the poverty rate to increase due to the influence of commodity prices which are widely consumed by people whose monthly income is below the limit. When the purchase price of basic necessities increases, the poverty rate will also increase.

A good government will not let its people suffer with uncertain conditions, the solution is on the government's side to reduce the economic squeeze on the lower middle class. The government has an obligation to eradicate poverty because it is something to pay attention to in the midst of uncertainty like today. After the wheels of the economy were squeezed due to Covid, then followed by inflation and the era of high interest rates that are now hitting several regions.
In essence, poverty cannot be eliminated, but education from the government on several skills can reduce the poverty rate in a country.

[umbara ardian]

As you know, poverty today is a socio-economic problem; it is both a hindrance and a challenge in the process of socio-economic development, improving people's living standards. While world civilization has achieved obvious achievements in scientific and technological progress, significantly increasing material and social wealth, and greatly increasing human wealth, the tragedy that plagues On the back of man is still poverty. Although there are many organizations of the United Nations and of the international community that carry out this glorious mission on a planetary scale, However, the reality shows that, although this is a job of global concern, still hungry countries are still hungry, and the community's help for a poor part of the population is just like salt from the sea. sufficient, not exhaustive.

[Marvell1]

In what ways have the people living in poverty impacted in the economy?
Share your ideas on the importance of the poor masses in economy sustainability.

People living in poverty does not mean they are free of paying taxes. I know few developed countries provide the financial assistance to there most poor sectors and even they have progressive tax system (in which poor are provided with relaxtion in tax while the rich ones are highly burdened with taxes).

But most of the countries do not provide these facilities and yet they also have regressive tax Taxation system (in which poor and the rich both are equally burdened with taxes).

In both cases, poor contribute to economy by making goods and by providing there services while in regressive tax, poor also pay taxes like me, and thus it is considered as contribution to the economy. And i just talked about taxes, there are lot of best teachers, mechanics, Engineers, Doctors, etc. Who belonged to poor sector and now due to there hard work they are making money and some of them giving it back to community by different ways and many are contributing to economy with taxes, donations and by helping in development plans.

Exactly, the poor are not exempt from taxes, what the rich can contribute to the national economy, the poor can too. Furthermore, I would argue that the poor play a more important role in the economy of any country, especially those with an export industry. Because the poor provide a large amount of labor to create goods and quality products for us to use. Their role is undeniable, but unfortunately, our society only looks at the surface to evaluate people and treat each other. They criticize the poor and only compliment the rich for each other.

[TheSpiral]

poor people role in economy is more than rich. lets suppose for some time there is no poor in one country. now who will work in land to produce food? who will work in factory as a labour? who will serve rich people

The answer is no one because when all peoples rich, no one will be ready to work hard because all there hardwork are just fir making money and when someone has already lot of money then why need this. lack of poor will make rich lives difficult. Tax is not main role in making economy but other factor too play big role and without poor people its not possible to get it.

[DrBeer]

poor people role in economy is more than rich. lets suppose for some time there is no poor in one country. now who will work in land to produce food? who will work in factory as a labour? who will serve rich people

The answer is no one because when all peoples rich, no one will be ready to work hard because all there hardwork are just fir making money and when someone has already lot of money then why need this. lack of poor will make rich lives difficult. Tax is not main role in making economy but other factor too play big role and without poor people its not possible to get it.

You have modeled the situation very wrongly. We can assume that there are two strata of the community left in the country: the Rich and the Middle Class.
And believe me, the work you wrote about will be done by the middle class, but at the "rates" of the middle class.
In a normal society, no one would take the place of the poor if they disappeared. There will simply be a reassessment of the market, with adjustments for the fact that this work will become more expensive. Although it is possible to have immigrants from other countries who are willing to work for little money...

[Smack That Ace]

poor people role in economy is more than rich. lets suppose for some time there is no poor in one country. now who will work in land to produce food? who will work in factory as a labour? who will serve rich people

The answer is no one because when all peoples rich, no one will be ready to work hard because all there hardwork are just fir making money and when someone has already lot of money then why need this. lack of poor will make rich lives difficult. Tax is not main role in making economy but other factor too play big role and without poor people its not possible to get it.

I don't think the role of the poor in the economy will be more significant than that of the rich, but I agree with part of what you say. What would happen to the world if everyone was rich and didn't need to work? That is why there is always a section of the poor in any country.

The poor also contribute and play an important role in the economy because they are responsible for producing the products, goods, and necessities for all of us. But having too many poor people is also not good for a country's economy because for a country to develop, its people must have a full life.

[iamsange]

people who live in poverty mean they don't get a large income in their life, or can be said to have no income in their life such as unemployment, or it could be people who earn but their expenses are greater than their income.

In a simpler sense, the poor are people who live life without a sense of contentment, so it can be underlined that those who are poor are those who always feel lacking in their lives. While those who always live well, are those who belong to the rich class even though they don't have a luxury car in their house. But for those who are unemployed, I think it's very clear that they are poor people who have no income, but we also have to check again about the unemployment status. Because there are also unemployed people who are caused by their laziness to work, although most of them are unemployed because they don't know where to work and don't know what to do.

so the role of the poor in the economy in my opinion is where the situation is below. but if life is in a state of poverty, it means it's time to build the economy and learn from failed experiences.

I think the role of the poor in the economy is to drive the wheels of the economy at the lower levels so that they can cause the wheels of the economy at the top levels to run as well. Because it would also be useless if all the rich people produce goods and sell goods on a large scale without targeting the market and people at the grassroots level. Because those who are rich certainly will not get any results from their sales after they produce goods in large quantities to be distributed to the market.

[Uruhara]

The fact is poor people are needed by rich people. and the rich will even live in trouble without the presence of the poor in this world. because there are rich people because there are poor people.

Even poor people are very meritorious behind every company development of rich people and the progress of a country's development. Because they are willing to work for a small salary. They work harder but for less money. So on the one hand poor people have very important services.

[Lida93]

In what ways have the people living in poverty impacted in the economy?
Share your ideas on the importance of the poor masses in economy sustainability.

There's less or nothing at all of a positive impact the poor plays in the economy of any county order than been a burden to the government. The poor are there just to make the wealthy more wealthier in the sense that they are used as stooges by the rich to perpetrate certain unlawful activities.

The poor are a threat to tranquility and security in the society and that's why every government needs to tackle poverty as much as they can to beat it to it's barest minimum. Cause where there's so much poverty there bound to be increase in crime rate cause majority of these poor populace may only see crime as means to daily survival.

[Iadegbola34]

The people living in poverty have a profound impact on the economy. Their participation and contribution are vital for its sustainability. If they are empowered and their poverty reduced, they can become potential consumers, workers, and entrepreneurs. They become active participants in economic activities, boosting growth and fostering a more equitable society. It's crucial to recognize their value and provide them with opportunities to thrive.

[GigaBit]

The fact is poor people are needed by rich people. and the rich will even live in trouble without the presence of the poor in this world. because there are rich people because there are poor people.

Even poor people are very meritorious behind every company development of rich people and the progress of a country's development. Because they are willing to work for a small salary. They work harder but for less money. So on the one hand poor people have very important services.

Simply we can say that if there were no poor people there would be no way to become rich. As we know that light is worthless without darkness. If there were no poor people, the word development would not even be uttered. The status of the rich can be understood because there are poor. If poor people stop their work for a day it will be very easy to understand the importance of poor people. Poor people are working today so that the rich can enjoy luxuries. The poor are working to produce goods and various works the rich are getting advantages by their work. And the biggest thing is that the rich are able to keep their positions because the appearance of the poor.

[ololajulo]

In what ways have the people living in poverty impacted in the economy?
Share your ideas on the importance of the poor masses in economy sustainability.

Rich people can't live without poor people as they will hire them to work and serve them. It was the fact that the poor people can't be eliminated in the community, they still exist because even though they wanted to improve their living but their thought about being contented to work with rich people who were also good to them, they stop dreaming big. Their labor participation helps the economy become sustainable as their role is to give service who are in need and we give thanks to them. That is why we must also be kind to them, not by taking advantage of their status.

The World Bank defines "poor" as those who lack the ability to afford food at a rate of $2 per day. Currently, the UAE does not have anyone in such a state, indicating that they are performing well. This demonstrates that poverty is not an inevitable condition in a country if it is effectively managed

[Texac]

In what ways have the people living in poverty impacted in the economy?
Share your ideas on the importance of the poor masses in economy sustainability.

There's less or nothing at all of a positive impact the poor plays in the economy of any county order than been a burden to the government. The poor are there just to make the wealthy more wealthier in the sense that they are used as stooges by the rich to perpetrate certain unlawful activities.

The poor are a threat to tranquility and security in the society and that's why every government needs to tackle poverty as much as they can to beat it to it's barest minimum. Cause where there's so much poverty there bound to be increase in crime rate cause majority of these poor populace may only see crime as means to daily survival.

Not all poor people are a burden to society or will become criminals who disrupt the peace of society.  what you are saying about the poor is a bit excessive and unacceptable.  my family is also poor, but we are not people who cause harm to society, do not ask anyone for anything, no one wants to be poor to be despised by others.  I don't know if you are rich, but you despise the poor so much, they are poor, but they are still human beings like everyone else.  the poor need to be treated fairly.

[Lida93]

In what ways have the people living in poverty impacted in the economy?
Share your ideas on the importance of the poor masses in economy sustainability.

There's less or nothing at all of a positive impact the poor plays in the economy of any county order than been a burden to the government. The poor are there just to make the wealthy more wealthier in the sense that they are used as stooges by the rich to perpetrate certain unlawful activities.

The poor are a threat to tranquility and security in the society and that's why every government needs to tackle poverty as much as they can to beat it to it's barest minimum. Cause where there's so much poverty there bound to be increase in crime rate cause majority of these poor populace may only see crime as means to daily survival.

Not all poor people are a burden to society or will become criminals who disrupt the peace of society.  what you are saying about the poor is a bit excessive and unacceptable.  my family is also poor, but we are not people who cause harm to society, do not ask anyone for anything, no one wants to be poor to be despised by others.  I don't know if you are rich, but you despise the poor so much, they are poor, but they are still human beings like everyone else.  the poor need to be treated fairly.

You misunderstood me mate, no doubt we will always have the poor around us and by poor here I mean indigent people that add no value or whatsoever to society like beggars on the streets. You can be said to be poor but with a skill you render as service to the rich in return you earn money but when you're poor and comfortable in it then you're a threat to society cause such persons will always see crime as the only easy means of survival thereby breaching the peace.

As long as anyone can provide shelter, clothing, and food for themselves which are the basic necessities of life then they ain't in this category of poor as meant here in this thread. And to be explicit, your family are not poor neither am I against the poor.