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? write me a summary, 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. Firstly, the government must allocate resources to help those living in poverty in order for them to survive. This diverts funds that could otherwise be used for economic growth and development. Secondly, poverty limits educational opportunities, leading to a less skilled workforce that is less productive. This hinders economic growth as skilled workers are necessary for a thriving economy. Income inequality is another issue, with a growing gap between the rich and poor. In several Central American countries, the richest 20 percent of the population earns more than half of the country's income. This inequality further hampers economic progress. Additionally, crime and corruption pose economic challenges for countries like Mexico. Corrupt officials demanding payments deter businesses from establishing themselves in the country, leading to a lack of job creation. The region also experiences high crime rates due to poverty and the illegal drug trade, which discourages investment. Lastly, a lack of good infrastructure, such as reliable transportation and clean water and electricity supplies, inhibits economic development as businesses require these services to function efficiently. Overall, poverty negatively impacts a country's economy by diverting resources, limiting education and skills, widening income inequality, fostering crime and corruption, and hindering infrastructure development.
Summary:
Poverty has a detrimental impact on a country's economy due to several reasons. Firstly, the government has to allocate resources to assist individuals living in poverty to ensure their survival. This diverts resources away from other valuable areas of the economy. Secondly, poverty restricts educational opportunities, hindering economic growth as less educated and trained workers are less productive than skilled workers. Income inequality is also a problem, with a widening gap between the rich and poor. In certain countries like Costa Rica, the Dominican Republic, Guatemala, Honduras, Mexico, Nicaragua, and Panama, the top 20% of the population earns over half the country's total income.
Crime and corruption further pose economic challenges in countries like Mexico and Central America. Corrupt government officials may demand payments for business transactions, deterring potential investments. Additionally, the prevalence of poverty and the illegal drug trade in the region contribute to a high crime rate, which negatively impacts the economy. Honduras, for example, had the highest murder rate in the world in 2014. This high crime rate discourages businesses from setting up offices or factories in these countries due to concerns about robbery and violence.
Furthermore, inadequate infrastructure, including highways, clean water supplies, and electrical grids, also hampers economic progress. Without reliable transportation, clean water, and electricity, businesses are less likely to create jobs in the region.
Summary:
Poverty harms a country's economy in multiple ways. Firstly, the government is forced to allocate resources to help those living in poverty, which diverts funds away from other development initiatives. Secondly, poverty limits educational opportunities, leading to a lack of skilled workers, which hampers economic growth. Income inequality exacerbates the problem, as the rich-poor gap widens and the majority of income is concentrated in the hands of a small percentage of the population. Crime and corruption are also significant economic challenges caused by poverty. Corrupt officials demanding bribes for conducting business discourage investment and job creation. Additionally, the high crime rates associated with poverty deter businesses from operating in the country, further stifling economic progress. Lastly, a lack of proper infrastructure, such as highways, clean water supplies, and electrical grids, hinders economic development, as businesses require reliable transportation and utilities to thrive.
To answer this question using the RACES method, we can follow these steps:
1. Read the passage carefully to understand the main points and evidence provided.
2. Analyze the question prompt to identify the specific information being asked.
3. Construct a response that directly answers the question using the information from the passage.
4. Elaborate on the main points and provide supporting evidence or examples from the passage.
5. Summarize the response by restating the main points in a concise manner.