What are the effects of absolute poverty on welfare?

The effects of absolute poverty on welfare are detrimental and wide-ranging. Absolute poverty refers to a state of extreme deprivation where individuals or households lack the basic necessities of life, such as food, shelter, and healthcare.

Firstly, absolute poverty negatively impacts physical and mental health. Lack of access to nutritious food, clean water, and proper sanitation increases the risk of malnutrition, disease, and stunted growth. This, in turn, leads to higher mortality rates and reduced life expectancy among the poor. Additionally, living in constant deprivation and insecurity can cause stress, anxiety, and depression, further deteriorating overall well-being.

Secondly, absolute poverty hinders educational opportunities and human capital development. Impoverished individuals often lack access to quality education, which limits their ability to acquire skills and knowledge necessary for economic advancement. This perpetuates a cycle of poverty, as limited education opportunities restrict employment prospects and income potential.

Furthermore, absolute poverty exacerbates social inequalities and hampers social cohesion. The lack of resources and opportunities for the poor can lead to social exclusion, marginalization, and discrimination. This can create social unrest, crime, and political instability, ultimately undermining societal well-being.

Lastly, absolute poverty has adverse effects on economic growth and development. When a significant portion of the population is trapped in poverty, it reduces overall productivity and consumption levels. This limits market demand, investment, and innovation, hindering economic progress. Moreover, poverty creates a burden on public resources, as governments need to allocate funds for social welfare programs and poverty alleviation measures.

In conclusion, absolute poverty has profound negative effects on welfare. It compromises physical and mental health, restricts educational opportunities, exacerbates social inequalities, and hampers economic growth. Addressing absolute poverty is crucial for promoting overall well-being and achieving sustainable development.