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The Impact Of Government Poverty In The Economy

Decent Essays
It has been nine years since the Financial Crash of 2008, yet some cities are still in the same recession. High growth cities, like Los Angeles and New York City are creating economic struggles in decaying industrial towns (Sparshott, 2017). How are these correlated? It is human nature to want to be where successful people are. Those in small decaying towns see the citizens of Los Angeles prospering, consequently, people who are capable will move to these high growth cities and leave behind their hometowns. The population left behind are commonly unemployed or possess low-income jobs. Some U.S. cities are still suffering from the recession of 2008 due to low government revenue from people flocking to cities with more opportunities and…show more content…
Meaning that government revenue will continue to be lower than before. According to Reid Wilson in his article “Recession, recovery leave behind suffering communities”, people who live in areas that are prospering economically are more likely to attain a higher education, get better jobs with better pay, and live longer than those in a struggling economy. These are the reasons why people are leaving the cities suffering from a recession and moving to those with better opportunities. Sadly, the people who are leaving are only making the situation worse by decreasing government revenue thus causing a continued recession.
While some are moving on to better opportunities, those without wealth and social status cannot afford to move out of a town that is still suffering from a recession. Sparshott in his article “US economic expansion is unevenly spread, study says” states, “In the bottom fifth of postal codes, almost 23% do not have a high school diploma, more of a quarter of the population lives in poverty, and more than 40% of adults ages 25- 64 are neither working nor looking for work”(Sparshott, 2017). These are the people that are contributing to the government revenue. Many do not own property or even have a job. The 23% without a high school diploma will never be able to attain a job that will bring them an attractive income. Furthermore, those who are unemployed and not looking for work will continue to suck the
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