Question

The cyclic poor are those
1. Who always remain poor
2. Who continuously shuffle between being poor and non-poor
3. Who mostly remain non poor but sometimes they become poor
4. All of the above

Answer 1

Correct Answer - Option 2 : Who continuously shuffle between being poor and non-poor

The correct answer is Who continuously shuffle between being poor and non-poor.

• This cyclic poverty depends on the ebb and flow of the national and global economy.
• For example, Europe was badly affected by the 2008-2013 great recession, which resulted in lower income levels and increased unemployment rates for the European countries.
  • Hence, some people lost their jobs and others found themselves not being able to make ends meet with what they earned, thus falling below the poverty line.

• The churning poor who regularly move in and out of poverty (example: small farmers and seasonal workers).
• The occasionally poor who are rich most of the time but may sometimes have apatch of bad luck.
• Those who are usually poor but who may sometimes have a little more money (example: casual workers) are grouped as the chronic poor.
  • Chronically poor people experience deprivation over many years, often over their entire lives, and frequently pass poverty on to their children.
• When the number of poor is estimated as the proportion of people below the poverty line, it is known as ‘Head Count Ratio’.