Directions: Read the following excerpt from the e-text and answer the question below using the RACES method
Question: How does poverty harm a country's economy?
Many countries, including Mexico, have made significant strides against difficult economic problems. Yet, severe challenges remain. Many people in Middle America live in poverty. Haiti is by far the poorest country, with a GDP per person of less than half that of the next poorest country, Honduras. In nearly every country in the region, many people live in poverty. Poverty hurts an economy in several ways. First, the government has to use resources to help people living in poverty so that they can survive. Second, poverty limits educational opportunities. That holds back economic growth, because workers with little education or training are less productive than skilled workers. Income inequality is a problem as well, with a growing gap between the rich and poor. The richest 20 percent of the population earn more than half of all the country’s income in Costa Rica, the Dominican Republic, Guatemala, Honduras, Mexico, Nicaragua, and Panama. Crime and corruption are another source of economic challenges for Mexico and many Central American countries. When corrupt government officials may demand payments as a condition for doing business, businesses may avoid creating jobs in that country. Due to poverty and the illegal drug trade, the region has a high rate of crime, which also hurts the economy. In 2014, Honduras had the highest murder rate in the world. High crime rates also discourage investment. Businesses do not want to open offices or factories in a country if they think they will be robbed or face a risk of violence. A lack of good infrastructure—or networks of structures such as highways, clean water supplies, and electrical grids—also holds the region’s economy back. If a business cannot count on reliable transportation to its customers or on clean water or electricity, then that business is not going to create jobs in a region
because it cannot effectively carry out its operations. Overall, poverty has a detrimental effect on a country's economy by diverting resources, limiting educational opportunities, creating income inequality, fostering crime and corruption, discouraging investment, and hindering infrastructure development.
RACES Method:
Restate: Poverty harms a country's economy in multiple ways.
Answer: Poverty harms a country's economy through diverting resources, limiting educational opportunities, creating income inequality, fostering crime and corruption, discouraging investment, and hindering infrastructure development.
To answer the question using the RACES method, we can follow these steps:
1. Restate the question: How does poverty harm a country's economy?
2. Answer the question: Poverty harms a country's economy in several ways.
3. Cite evidence from the text: The government has to use resources to help people living in poverty so that they can survive. Poverty limits educational opportunities, which holds back economic growth. Income inequality is a problem, with a growing gap between the rich and poor. Crime and corruption are another source of economic challenges, as businesses may avoid creating jobs in countries with corrupt officials. High crime rates discourage investment. A lack of good infrastructure also hampers the economy.
4. Explain and elaborate: Poverty harms the economy because the government has to allocate resources towards supporting those living in poverty, which could otherwise be used for investments in infrastructure or other productive sectors. Additionally, poverty limits educational opportunities, leading to a less skilled workforce that is less productive. Income inequality can lead to social unrest and hinder economic development as resources are concentrated in the hands of a few, while the majority struggles. Crime and corruption deter businesses from investing and creating jobs, while high crime rates make it unsafe for businesses and individuals. Lastly, a lack of good infrastructure makes it difficult for businesses to operate efficiently, impacting trade and economic growth.
Using this process, we have answered the question by analyzing the given text and providing an in-depth explanation of how poverty harms a country's economy.
RACES method is a strategy used for answering questions:
R - Restate the question: How does poverty harm a country's economy?
A - Answer the question: Poverty harms a country's economy in several ways.
C - Cite evidence from the text: The text states that poverty hurts an economy in several ways. First, the government has to use resources to help people living in poverty so that they can survive. Second, poverty limits educational opportunities, which holds back economic growth. Income inequality is also a problem, with a growing gap between the rich and poor. Crime and corruption are another source of economic challenges, as businesses may avoid creating jobs in countries with corrupt government officials. High crime rates discourage investment, and a lack of good infrastructure holds the economy back.
E - Explain your answer: Poverty harms a country's economy by diverting government resources towards supporting those living in poverty. This reduces the funds available for investing in infrastructure, education, and economic development. Additionally, poverty limits educational opportunities, leading to a less skilled and less productive workforce. Income inequality further exacerbates economic challenges, as the wealth gap between the rich and poor widens. This can lead to social instability and discourage business investment. Furthermore, crime and corruption deter businesses from operating in poverty-stricken regions, hindering economic growth. Finally, a lack of good infrastructure, such as reliable transportation and access to clean water and electricity, further hampers economic progress.
you did not use the full RACES stragety
Apologies for the confusion. Let's use the full RACES strategy to answer the question:
R - Restate the question: How does poverty harm a country's economy?
A - Answer the question: Poverty harms a country's economy in several ways.
C - Cite evidence from the text: The government has to use resources to help people living in poverty so that they can survive. Poverty limits educational opportunities, which holds back economic growth. Income inequality is a problem, with a growing gap between the rich and poor. Crime and corruption are another source of economic challenges for Mexico and many Central American countries. High crime rates also discourage investment. A lack of good infrastructure, such as highways, clean water supplies, and electrical grids, holds the region's economy back.
E - Explain your answer: Poverty harms a country's economy by diverting resources, limiting educational opportunities, creating income inequality, fostering crime and corruption, discouraging investment, and hindering infrastructure development. The government has to allocate resources to support those in poverty, which could otherwise be used for infrastructure development or investment in productive sectors. Limited educational opportunities result in a less skilled workforce, impacting productivity and economic growth. Income inequality leads to social unrest and hinders economic development as resources concentrate in the hands of a few, while the majority struggles. Crime and corruption deter businesses from investing and creating jobs. High crime rates create an unsafe environment for businesses and individuals, leading to reduced economic activity. Lastly, a lack of good infrastructure makes it difficult for businesses to operate efficiently and hampers economic growth. Without reliable transportation, clean water, and electricity, businesses cannot effectively cater to their customers or carry out their operations. Overall, poverty has a detrimental effect on a country's economy through various channels.