Cycle of poverty

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In economics, a cycle of poverty, poverty trap or generational poverty is when poverty seems to be inherited, preventing subsequent generations from escaping it. This is known as the cycle of poverty. It is caused by self-reinforcing mechanisms that cause poverty, once it exists, to persist unless there is outside intervention. It can persist across generations, and when applied to developing countries, is also known as a development trap. Families trapped in the cycle of poverty have few to no resources. There are many self-reinforcing disadvantages that make it virtually impossible for individuals to break the cycle. Lack of financial capital, education, and social connections all play a role in keeping the impoverished within the cycle of poverty. Those who are born into poverty have been shown to consistently remain poor throughout their lives. Educational psychologist Ruby K. Payne, author of A Framework for Understanding Poverty, distinguishes between situational poverty, which can...

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