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? Make sure to include poverty and the crime
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
Poverty harms a country's economy in several ways. First, the government must allocate resources to help people living in poverty in order for them to survive. This means that less resources are available for initiatives that could spur economic growth. Second, poverty limits educational opportunities and hinders economic growth. Individuals with little education or training are less productive than skilled workers, which slows down economic progress. Additionally, income inequality is a problem in many countries, with a significant gap between the rich and poor. In some countries, the richest 20 percent of the population earn over half of the country's income. This disparity further hampers economic development.
Furthermore, poverty and the crime that often accompanies it present economic challenges. Corrupt government officials may demand payments for business transactions, deterring businesses from creating jobs in that country. The high rate of crime, fueled by poverty and the illegal drug trade, also adversely affects the economy. For example, Honduras had the highest murder rate in the world in 2014. Such crime rates discourage investment, as businesses do not want to operate in areas where they may be robbed or face violence.
Moreover, a lack of good infrastructure, such as highways, clean water supplies, and electrical grids, hinders the region's economy. Without reliable transportation, businesses struggle to reach customers. Additionally, a lack of access to clean water and electricity poses obstacles to economic development. If businesses cannot rely on these essential resources, they are unlikely to create jobs in the region.
Overall, poverty negatively impacts a country's economy by diverting resources, limiting educational opportunities, contributing to income inequality, fostering crime, and hindering infrastructural development.
According to the given excerpt, poverty harms a country's economy in several ways. First, the government has to allocate resources to help people living in poverty so that they can meet their basic needs. This means diverting resources from other areas of development. Additionally, poverty limits educational opportunities, which hinders economic growth. Workers with limited education or training are less productive than skilled workers.
Another way poverty harms the economy is through income inequality. When there is a growing gap between the rich and the poor, it leads to social and economic instability. In several countries in the region, the richest 20 percent of the population earns more than half of all the country's income.
Moreover, crime and corruption pose significant economic challenges in countries like Mexico and many Central American countries. Corrupt government officials may demand bribes or additional payments, making it difficult for businesses to operate successfully. In addition, the region has a high rate of crime due to poverty and the illegal drug trade. Honduras, for example, had the highest murder rate in the world in 2014. High crime rates discourage investment as businesses are unwilling to open offices or factories in countries with a risk of robbery or violence.
Furthermore, a lack of good infrastructure, such as highways, clean water supplies, and electrical grids, holds back the region's economy. If businesses cannot rely on reliable transportation, clean water, or electricity, they are less likely to invest or create jobs in that region.
In conclusion, poverty harms a country's economy by diverting resources, limiting educational opportunities, fostering income inequality, contributing to crime and corruption, and hindering infrastructure development.
To answer the question using the RACES method, firstly we need to Restate the question. The question is asking: "How does poverty harm a country's economy, specifically in relation to crime?"
To Answer the question, we can analyze the given excerpt:
1. Poverty forces the government to allocate resources towards providing assistance to impoverished individuals so they can survive.
2. Poverty limits educational opportunities, which hinders economic growth because individuals with little education or training are less productive compared to skilled workers.
3. Income inequality, with a growing gap between the rich and poor, is a problem in many countries. In certain countries like Costa Rica, the Dominican Republic, Guatemala, Honduras, Mexico, Nicaragua, and Panama, the richest 20 percent of the population earn more than half of all the country's income.
4. Crime and corruption are significant economic challenges faced by Mexico and many Central American countries.
a. Corrupt government officials may demand payments as a prerequisite for doing business, discouraging businesses from investing in that country and hindering job creation.
b. The illegal drug trade, coupled with poverty, contributes to high crime rates in the region. Honduras had the highest murder rate in the world in 2014.
c. High crime rates also discourage investment as businesses are hesitant to establish offices or factories in a country where they fear robbery or violence.
5. Lack of infrastructure, including reliable transportation, clean water supplies, and electrical grids, also hinders the region's economy. If businesses cannot rely on these essential infrastructure components, it becomes less likely that they will create jobs in the area.
Now let's Summarize the answer:
Poverty harms a country's economy in multiple ways. Governments must allocate resources to provide assistance to impoverished individuals, limiting funds available for other economic development initiatives. Poverty also restricts educational opportunities, resulting in a less productive workforce. Income inequality further exacerbates the economic impact, with a large portion of the population earning significantly more than others. Additionally, crime and corruption pose significant economic challenges, deterring investment and discouraging businesses from establishing operations or creating jobs. The presence of a high crime rate, fueled by poverty and the illegal drug trade, further scars the economy. Lastly, a lack of adequate infrastructure, including reliable transportation, clean water supplies, and electrical grids, hampers economic progression as businesses require these essential components to thrive.
By utilizing the RACES method, we can provide a well-structured answer supported by evidence from the given text.
you did not include the full RACES method
You're right, I apologize for that. Let me provide the full RACES method:
Restate the question: How does poverty harm a country's economy, specifically in relation to crime?
Answer the question: Poverty harms a country's economy in multiple ways. Governments must allocate resources to provide assistance to impoverished individuals, limiting funds available for other economic development initiatives. Poverty also restricts educational opportunities, resulting in a less productive workforce. Income inequality further exacerbates the economic impact, with a large portion of the population earning significantly more than others. Additionally, crime and corruption pose significant economic challenges, deterring investment and discouraging businesses from establishing operations or creating jobs. The presence of a high crime rate, fueled by poverty and the illegal drug trade, further scars the economy. Lastly, a lack of adequate infrastructure, including reliable transportation, clean water supplies, and electrical grids, hampers economic progression as businesses require these essential components to thrive.
Cite textual evidence: According to the provided excerpt, poverty harms the economy as the government has to allocate resources to help people in poverty survive. The text also highlights how poverty limits educational opportunities, leading to a less productive workforce. Furthermore, it mentions income inequality, with the richest 20 percent of the population earning more than half of the country's income in several Central American countries. Crime and corruption are additional economic challenges mentioned in the text, with corrupt government officials demanding payments for business transactions and high crime rates hindering investment and job creation. Lastly, the lack of good infrastructure is mentioned as a factor that holds back the region's economy in terms of transportation, clean water supplies, and electrical grids.
Explain and Elaborate: Poverty harms a country's economy due to the allocation of resources by the government to aid impoverished individuals. These resources could have been used for other developmental projects that could potentially stimulate economic growth. In addition, poverty leads to limited educational opportunities, thus hindering the capacity for economic progress, as individuals with less education and training tend to be less productive than their skilled counterparts.
Income inequality further compounds the negative effects of poverty on the economy, as a significant gap between the rich and poor can cause social and economic instability. The concentration of wealth in the hands of a few individuals limits the purchasing power of the majority, impacting overall economic growth.
Moreover, crime and corruption pose significant economic challenges in countries like Mexico and Central American nations. The demand for bribes or additional payments by corrupt government officials creates an unfavorable environment for businesses, discouraging both domestic and foreign investments. The region's association with the illegal drug trade and the resultant high crime rates further deter business activities, as companies are reluctant to establish offices or factories in areas prone to robbery and violence.
Furthermore, a lack of good infrastructure, such as reliable transportation, clean water supplies, and electrical grids, hampers economic development. Businesses need efficient transportation networks to reach their customers, and a lack of clean water or stable electricity can hinder productivity and growth. An unreliable infrastructure also affects the willingness of businesses to invest and create jobs in the region, as they require these essential resources for sustainable operations.
In conclusion, poverty harms a country's economy through the allocation of resources, limited access to education, income inequality, crime, corruption, and inadequate infrastructure. Taking all these factors into account, it becomes clear that poverty's negative impact extends beyond the individual level and affects the overall economic well-being of a country.