Factors leading to poverty in North America

Though North American countries are counted as the most developed worldwide, there are still millions of people in the US, Canada, and Mexico who live below the poverty line. It is estimated that more than 90 million people across the continent are living in poverty in North America. Though about 12.7 percent and 7.5 percent of Americans and Canadians respectively are considered poor, almost half of Mexicans live below the poverty line.

Though all three governments are taking measures to get people out of the poverty trap, there are certain factors that they must work on to tackle this challenge.

 

Poor economy- Even though many Fortune 500 companies are registered in North America, this has not helped boost job growth. Many companies have been outsourcing or moving production abroad to take advantage of low wages there. This has led to unemployment particularly in the US and Canada.

 

Substance abuse- Many people across North America are drug and alcohol addicts. To fund this habit, they spend all they earn or have, eventually leading them to poverty. For example, some addicts who consume $100 worth of cocaine daily, are effectively spending $700 per week. Add to that increased medical bills and debt, these drug addicts eventually become homeless and destitute. 

 

Lack of education- Many people from disadvantaged sections of society cannot afford to earn a college degree or take a vocational course. They may have to drop out of school to supplement their family’s income. Those who have just a high school diploma usually earn just above the poverty line.

 

Medical expenses- Many people develop severe medical illnesses that require constant medication and sometimes long stays in the hospital. Even if the person is well to do, high medical expenses can divert their income which he would usually spend on life’s necessities. These expensive surgeries, medical drugs, and treatments can burn a big hole in people’s pockets, forcing them to borrow beyond their means to survive.

 

Poor infrastructure- This is mostly a challenge faced by Mexico. Many people living in remote regions do not have access to necessary resources, rendering them poor. Many of them are dependent on the government to provide them with rations, water, electricity, and other necessities. However, not all people in rural areas get these resources regularly. This makes them dependent on non-profits and other organizations that work to feed the hungry and provide for the poor.

 

Too much bureaucracy and red tape- Even if the government is offering social security benefits, many people are left in the lurch due to corruption and excess bureaucratic processes. They do not understand how to avail of the government’s schemes and are frequently turned away by bribe-demanding public officials. Sometimes, their applications are rejected or delayed due to red tape. Corrupt public officials work hand-in-glove with other stakeholders to rob the money meant for the poor. This is a big challenge the Mexican government faces.

 

Inadequate incomes- Many disadvantaged people have incomes that aren’t sufficient for their needs. This could be due to large families, medical costs, rent, tuition, or other necessary expenses. This can eventually result in people borrowing way above their means to meet certain expenses. When their expenses are way higher than their income, this results in cyclical poverty.

 

In the end

Though most of North America is considered developed with a high per capita GDP, there are still many who do not have the means to survive. When it comes to the question of how to end poverty, this requires a consistent effort by all stakeholders involved.

Here at the Catholic Connect Foundation, we collect funds and resources to help the poor meet their expenses. It isn’t only the rich who donate, even small donations from $15 per month can help those in need. Donate now and earn the blessings of God.