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Why do people work so hard just to stay poor?

by Glenn Magas

Created on: September 02, 2009

People do not work hard to stay poor. They work hard with hopes to survive, and some, with hopes to achieve wealth. Unfortunately, for the majority of the poor or lower class, they will never achieve wealth.

The gap between the middle class and the lower class is a huge gap. On the other end, the gap between the middle class and the upper class is extremely small. For the middle class to achieve wealth, with upper class status, takes only a manner of better choices, living within means, and acting on opportunities instead of dismissing them. More education, formal or self taught, provides the middle class with the opportunity to 'up' their status.



For the poor, opportunities are just as available. Unfortunately, the poor may not act, can not act or recognize these opportunities. Choices are made that make it harder for them to move up in class no matter how hard they work. The number one factor is their education level.

According to the Bureau of Labor Statistics: higher levels of education provides greater access to higher paying jobs: the professional fields. In 2004, those with less than a high school education were more likely to be working and poor (15.2%). As levels of education increased, high school diploma but no college, it reduced the working-poor to 6.5%.

Achieving higher levels of education reduces the chances of being among the working-poor.

Hard work pays off, but hard work doing the right work pays of financially. Although education will get you a job, education will not make you wealthy.

This represents that tiny gap between the middle and upper class. The middle class, with more education than the poor, has more opportunity for higher paying jobs. These jobs, and proper choices, can bridge the gap from the middle to the upper class quickly. But too many live 'rich' and are not wealthy. The majority of middle class will never bridge the gap because of this, yet it is relatively easier to bridge the gap versus the lower class trying to cross over to the middle class.

Lower education will reduce the chances of getting a higher paying job, which makes it incredibly difficult to achieve a higher 'status'.

Labor demand polices can help, but it usually faces strong political opposition. The emphasis, to decrease poverty levels, should be on education. According to Timothy J. Bartik, Economist from The Upjohn Institute, states, "Education and training are the best known techniques for affecting the labor supply of the poor."

The question, "Why do people work so hard just to stay poor?" may not be phrased appropriately. People do not work hard just to stay poor, people work hard with hopes of the complete opposite: to avoid being poor. Unfortunately, education affects poverty levels as it also affects the labor supply. If people worked hard to educate themselves first, they have a greater chance of working hard to cross the large gap into the middle class. From there, it is only a small bridge to cross to work hard in order to become rich.

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