Promoting growth and fighting poverty should be the priority in the developing world, not reducing greenhouse gases do you agree?

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“Promoting growth and fighting poverty should be the priority in the developing world, not reducing greenhouse gases” do you agree?

Poverty is not just having not being malnourished or not having enough food, clothing or shelter. It is more about living in an environment with inadequate income and resources, where standard of living in a society and economic growth is precluded. It is a huge threat to our society just like greenhouse gases are. Greenhouse gases are gases like carbon dioxide and carbon monoxide which are emitted by human activities in order to generate energy and electricity through bringing fossil fuels. The emission of these gases causes them to absorb infrared radiation from ultraviolet radiation from the sun in the stratosphere and this causes energy to be released and reflected back to the earth causing it to warm up also known as the greenhouse effect.  Greenhouse gases are not just a problem to our health but to our economy too. However should we really try to reduce greenhouse gases instead of focusing on fighting poverty in order to promote growth?

We live in the 21st century which is a modern era, where the world is developing at faster speed than ever before and new inventions and technologies are being made every day to increase our standard of living. However there is still one problem that remains unresolved, and that is poverty. How can we be so promising to create a higher standard of living and a better life when poverty is still present and people are dying and struggling every day in order to survive. Is it ethical for our government to spend vast amount of money on technology and inventions instead of reducing poverty? Is it beneficial for our economy? Poverty is a huge problem for our economy; it creates a barrier for our economy to experience growth. Poverty is a withdrawal from our economy. Poverty within an economy creates spare capacity. This spare capacity is labour which is also one of the factors of production. In an economy there are limited resources and unlimited wants. Poverty causes spare capacity as the factors of production are not used to it full potential which could have been allocated and used to satisfy many needs and wants. Poverty within an economy will therefore cause reduced amounts of good and services to be produced therefore its aggregate demand will shift to the left, and this will therefore cause reduction in GDP of an economy and also a barrier to further potential growth. This is shown in the diagram below.

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Poverty would also cause aggregate demand curve of an economy to shift to the left. This is because people will have lower purchasing power, and due to this people will spend less. This reduction in spending and as consumption is a component of aggregate demand the aggregate demand curve will therefore shift to the left.

Reduction in demand will also trigger many negative effects, such as unemployment and lower investment; which are also withdrawal from the circular flow of income.  Reduction in demand mean that firms and businesses will have ...

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