Analysis of the Economic Impact of the Major Social Problem of Poverty Assignment

Analysis of the Economic Impact of the Major Social Problem of Poverty - Assignment Example Indeed, the article vividly shows that the government of New York City must aid the residents in their desire to climb out of their current poverty debacle. Subject: Business Topic: Article Analysis Introduction In terms of discussing the model or economic theory that relates to the issue presented in the news article, the economic theory in focus is a supply and demand theory. As prices of goods and services increase, the demand for the products and services decrease. Likewise, as the prices of goods and services increase, the supply of the goods and services increase (Arnold, 2008). In terms of discussing what economic theory states and predicts about the issue presented in the news article, as the prices of goods and services increase, the poverty level people will reduce their demand for the higher priced products. On the other hand, as the prices of goods and services increase, the business entities are eager to supply more services and goods in order to generate more profits (B oyes, 2010). Analysis of the Economic Impact of the Major Social Problem of Poverty The April 12, 2012 issue of the New York Times article is reflection on poverty. The title of the article is New York City’s Poverty Rate Rises, Study Finds (Roberts, 2012). The paper shows strong evidence there has been an increasing number of New York residents joining the ranks of the poor over the last years. The number of New York City residents has literally increased by 100,000 individuals. With the increase, the poverty ratio soared by as much as 1.3 percent. The new poverty rate is 21 percent. The percent indicates that one out of every five New York residents qualifies as poor. The article further states that New York has one of the highest poverty levels in the U.S. Once New York has implemented a more detailed description which defines who can be classified as a poor individual, current New York City’s statistics of the poor has the largest annual rise in poverty ratio. As J an Windebank emphasized, â€Å"Throughout the advanced economies, the widespread consensus is that employment is the best route out of poverty. Not only are the approaches of both the Old Left and New Right grounded in such a belief, but so too is the employment-focused third way approach of New Labor. In this book, however, our intention is to begin to explain why an alternative third way discourse has started to emerge that rejects an employment-centered approach to poverty alleviation† (Windebank, 2003). The current recession, which started in 2008, is blamed as the major culprit for the ballooning of the poor individuals in New York City. The recession brought a lot of the United States companies into the unfavorable quagmire of bankruptcy. With bankruptcy enveloping some of the companies in the United States skies, those that cannot innovate are forced to close shops. With the closing of the shops, many employees are retrenched. With the loss of their jobs, the retrenche d employees could not afford to retain their previous lifestyle. The retrenched employees had to join the long line of New Yorkers waiting for their turn to grab a set of food coupons. With the slowing of the United States economic wheel into a snail’s pace, statistics showed that one out of every four New York residents, under the age of 18 years, joined the poor of New York, the city that never sleeps. New York City’s Center for Economic Opportunity reported the latest poverty report. Likewise, the 2008 U.S. Economic crisis is