Explain the vicious of poverty? With a help of a diagram?
Answers
# The causes and cycle of poverty.
I grew up in poverty, we were homeless and on welfare at one point, but I sacrificed and got myself out of poverty. But I still live with the working poor. I do a lot with my money, I'm pretty frugal, but it's not enough, I can't fund my IRA to a decent level.
## Poor economic policy
Poor economic policy is one facet why there is poverty. The Great Recession of 2008-2009 saw many financial institutions "circling the drain", but the US gov't bailed them out. This sends the message the these companies can make foolish decisions with no personal responsibility at all. When these companies downsize, many people lose their jobs. And when the economy goes bad, many other companies also lay off people.
## Poor money management
The poor have to take some responsibility for their situation. The poor have some of the worst habits which keeps them in poverty. If you actually live with the poor, like I do, you will see most have one or more of: smart phones, high speed internet, cable TV, satellite TV, or a new truck or boat. My neighbor has 2 extra vehicles and 2 boats in his back yard alone, yet his roof is falling apart. Their poor money management keeps them down.
