Causes and Effects of Poverty

The past 20 years have witnessed significant changes in poverty levels

throughout Scotland. Almost one in five people in Scotland are now living in

Poverty and for children the situation is worse with one in four now living in

Poverty. Those who will ultimately suffer are in the hands of those who will suffer.

All of the following are being born into a poor family, being a victim of

domestic violence, which results in poverty as a result of the victim's lack of control

over their finances, someone losing their job, which is a bigger issue right now

because of the COVID-19 dilemma, furloughs are set to terminate at the end of

October 2020, which could result in a substantial number of job losses, losing

everything since a spouse squandered the family's earnings and money, feeling

compelled to help people because of emotional ties, resulting in debt or increasing

debt, and maybe the loss of their home. The most important thing to keep in mind

is that no one wants to be poor.

Every day becomes a challenge as you must make decisions about every

move you take. Do I have enough cash to put gas in my car and drive to work?

How can I stretch P 500 to feed a family of four for three days? Where can I get

free and unrestricted assistance and support? How can I cut my expenses so that

the money I have lasts until my next paycheck? Do I cook or heat my house today?

Even if I receive a Food Parcel, I will be unable to cook the food due to a lack of
funds. The amount of stress that each person is under rises dramatically. They are

unable to concentrate at work, resulting in poor performance and the possibility of

losing their job. They become socially isolated as a result of their inability to

participate in social gatherings or activities due to a lack of cash. People may

regard them as unwilling to participate at a moment when they are most in need of

assistance. To provide for their families, people may be tempted to turn to crime -

"Poverty is the mother of all crime." Parents forego food and other necessities to

ensure that their children and those they support have what they require. Bullying

occurs at school when students do not have the latest phone, sports equipment, or

laptops / mobile devices. Life might get so difficult that the only way out is to

commit suicide. Children's health, social, emotional, and cognitive development,

behavior, and educational results are all negatively impacted by poverty. Children

born into poverty are more likely to suffer from a variety of health issues, such as

malnutrition, chronic disease, and mental illness.

PhilHealth's indigent membership has soared in recent years, owing to a

nationwide identification of the poor. However, because of the widespread

identification, more people have been enrolled than official poverty estimates,

resulting in leaks in the government's social health insurance subsidy. The

increased funds from the altered sin tax law have aided the enormous enrollment.

Subsidies for the poor currently account for more than a third of the national health

insurance fund, thereby subsidizing health care for other members of society,

particularly those in the informal sector. Hospitals also enroll the poor and near
poor in PhilHealth at the point of care, and given the larger reimbursement relative

to the premium subsidy, they may over-subscribe the poor. The poor are protected

by a No Balance Billing policy, which means they are not responsible for any

hospital fees that exceed the case rate. Despite this, nearly half of the poor face

out-of-pocket costs, particularly for pharmaceuticals. The Primary Care Benefit 2

Package, which pays for out-patient medicines for certain illnesses to prevent

catastrophic conditions, covers nearly three-quarters of the poor. Finally, the Z

Benefit Package, which subsidizes catastrophic illnesses, is anticipated to account

for nearly to 1% of the poor's benefits.