\documentclass[]{article}
\usepackage[style=verbose-ibid,backend=bibtex]{biblatex}
\addbibresource{final_references.bib}
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\hypersetup{
  pdftitle={Poverty is Inevitable but Can Be Controlled},
  pdfauthor={Anton McClure},
  pdfsubject={Survey of Basic Economics},
  pdfkeywords={Poverty, Akron, Statistics, Solution}
}

\title{Poverty is Inevitable but Can Be Controlled}
\author{
  Anton McClure\thanks{
    \url{http://www.aperture.nonpaged.com/\~asm135/},
    \url{asm135@aperture.nonpaged.com}
  }
}
\date{July 15, 2019}
\begin{document}
\maketitle

\tableofcontents
    \begin{abstract}
      Even if we do not want to think about it: poverty, as in one
      having less money, resources, or opportunities than another, is
      inevitable.  Unlike the GDP alone may suggest, the economy is
      worse off for more people.  The causes of poverty, typically
      including inflation, wage stagnation, educational opportunities
      or the lack of opportunities, debt, corruption, and
      unemployment, making it increasingly difficult if not impossible
      to obtain necessities needed to live.  Even if a specific area
      has job opportunities, one or more of these factors may become
      an issue, keeping more people in poverty.  While the free market
      can not regulate itself, it could be regulated through
      government intervention such as incentives, paid sick leave and
      paternity/maternity leave, affordable healthcare and health
      insurance available to anyone, and reforms to the justice system
      so that nonviolent offenders are not punished with prison time,
      and so that nonviolent offenders are not punished with prison
      time, and so that offenders, incarcerated or not, would be able
      to become a part of normal society again.  This paper takes a
      look at the meaning of poverty, the inevitability of poverty,
      statistics for income, and provides an understanding of the
      effects of poverty and solutions for how to start solving or
      reducing it.
    \end{abstract}
Keywords: Poverty, Akron, Statistics, Solution

\newpage

\section{Introduction}

The United States GDP in 2018 was \$20.5 trillion, was estimated to be
\$21.1 trillion in 2019, and expected to increase to \$22.2 trillion
in 2020\autocite{IMF1}.  The US is currently ranked as the top
economy\autocite{ST1} with a GDP of over 21 trillion, while 12.3\%
(compared to 13.6\% in 2001, with the average rate of "8.1
percent\autocite{Smeeding2001}"), which is about 39.7 million of all
Americans, are living in poverty\autocite{Warren1}.

The poverty rate in the United States is growing, along with a divide
between the rich and poor in the country\autocite{Umair1}.  The causes
can be traced back to several reasons including inflation, stagnating
wages, under-education, debt, corruption, and unemployment, among
other reasons.

\section{Understanding Poverty}

Inflation is defined as an increase of overall price levels within a
specific time period, leading to above-average prices for goods and
services\autocite{Kemp1}.

For many Americans, the price of goods are going up while wages are
staying the same.  For example, while the average living wage in the
United States is \$16.07 before taxes are taken
out\autocite{Glassmeier1}, and Americans making less than this amount
hourly are living in poverty.  However, the federal minimum wage is
currently \$7.25 (which remains unchanged since 2009, despite growing
inflation) and jobs where payment is given through tips from customers
have a \$2.13 minimum wage\autocite{dol1} (which remains unchanged
since 1991\autocite{Allegretto2014}, also despite growing inflation).
Employees receiving the standard minimum wage receive 45\% of a
livable wage.  Likewise, employees receiving tips only receive 13\%.

Education and job experience play an important role in reducing
poverty through influence on poverty and earnings\autocite{Melin2001}.
Studies have shown how skills and knowledge gained from education
plays a very important role when looking for employment, with many
jobs requiring a college degree or high school diploma, even if it
should not be necessary for that job.

Studies have also shown that corruption can affect economic growth in
various ways such as the tax systems, social program targeting,
ownership of assets and other resources, educational opportunities,
among other factors\autocite{Gupta2002}.  This could include taxes for
poorer people taking more of their income than richer people, groups
of people being purposefully excluded from social programs and schools
being closed in poorer, disadvantaged areas.

A person is considered unemployed if perse does not have a job but is
actively looking for one\autocite{Kemp1}.  Even if a person isn't
actively looking, no job would mean no income, making it more
difficult (if not impossible) to pay bills, buy necessities such as
food, water, clothes, or even survive.

\section{Statistics: Poverty in Akron, Ohio}

The City of Akron consists of 22 neighborhoods with the Per-Capita
Incomes ranging from \$9,141 (University Park) to \$59,656 (Merriman
Hills), with the overall average being \$21,897.  The below table
shows the populations, average household size, per-capita income,
median household income, and average household income for Akron's
neighborhoods:

\begin{table}[htb]
  \begin{center}
    Table 1: Akron Neighborhood Statistics (2016)
    \begin{footnotesize}
      \begin{tabular}{c|c|c|c|c|c}
	Neighborhood & Population & Avg HH Size & Per-Capita Income &
        Mdn HH Income & Avg HH Income
        \\\hline
        Cascade Valley & 2,218 & 2.27 & \$17,331 & \$19,968 & \$40,286
        \\\hline
        Chapel Hill & 4,934 & 2.27 & \$19,951 & \$27,584 & \$38,497
        \\\hline
        Downtown & 3,439 & 1.58 & \$16,577 & \$11,444 & \$24,429
        \\\hline
        East Akron & 13,517 & 2.51 & \$13,173 & \$25,887 & \$33,219
        \\\hline
        Ellet & 20,443 & 2.3 & \$22,081 & \$43,527 & \$50,758
        \\\hline
        Fairlawn Heights & 2,175 & 2.34 & \$43,087 & \$67,940 &
        \$102,227
        \\\hline
        Firestone Park & 9,967 & 2.32 & \$24,384 & \$45,649 & \$56,228
        \\\hline
        Goodyear Heights & 15,242 & 2.4 & \$18,239 & \$37,546 &
        \$43,906
        \\\hline
        Highland Square & 7,848 & 1.96 & \$24,465 & \$36,875 &
        \$47,476
        \\\hline
        Kenmore & 18,190 & 2.38 & \$16,816 & \$33,705 & \$40,115
        \\\hline
        Merriman Hills & 2,807 & 2.38 & \$59,656 & \$88,015 &
        \$142,031
        \\\hline
        Merriman Valley & 6,366 & 1.98 & \$26,130 & \$42,239 &
        \$51,389
        \\\hline
        Middlebury & 5,405 & 2.5 & \$11,016 & \$22,297 & \$27,478
        \\\hline
        North Hill & 15,983 & 2.48 & \$16,043 & \$32,690 & \$40,066
        \\\hline
        Northwest Akron & 11,478 & 2.16 & \$35,198 & \$53.639 &
        \$76,127
        \\\hline
        Sherbondy Hill & 7,954 & 2.32 & \$13,143 & \$19,989 & \$30,204
        \\\hline
        South Akron & 8,852 & 2.52 & \$12,279 & \$25,626 & \$32.435
        \\\hline
        Summit Lake & 3,981 & 2.67 & \$9,530 & \$19,075 & \$26,045
        \\\hline
        University Park & 8,329 & 2.44 & \$9,141 & \$19,369 & \$24,834
        \\\hline
        Wallhaven & 5,600 & 1.99 & \$30,563 & \$45,629 & \$59,168
        \\\hline
        West Akron & 16,741 & 2.41 & \$16,761 & \$31,188 & \$40,669
        \\\hline
        West Hill & 3,117 & 2.02 & \$16,198 & \$19,729 & \$32,677
      \end{tabular}
      Table 1.  Neighborhood population, household size, per-capita
      income, median household income, and average household
      income.\autocite{Akron1} --- Copyright \textcopyright\space 2016
      City of Akron.  All rights reserved.
    \end{footnotesize}
  \end{center}
\end{table}

\section{Understanding Poverty in Akron, Ohio}

The poverty line for one person is \$12,490.  Akron neighborhoods
which have per-capita income below the poverty line, from highest to
lowest income amounts are: South Akron, Middlebury, Summit Lake, and
University Park.

Located south of Downtown Akron, South Akron is a primarily
residential neighborhood (mostly single-family homes), with several
industries, shops/retail, and other small businesses located around
Brown Street, Cole Avenue, Grant Street, East Miller Avenue, Morgan
Avenue.\autocite{Akron2}

Located east of the University of Akron, Middlebury is a combination
of residential and major industries, retail, and other companies.  It
is also historically the oldest settlement in Akron.\autocite{Akron3}

Also located south of Downtown Akron, Summit Lake is primarily
residential with some industrial, retail, and other companies.
However a lot of industries that were in this neighborhood either
moved out from Akron, or were closed due to decisions made by the
City/State, such as a reconstruction project for South Main Street and
Interstate 76 that lead to several buildings along old South Main
Street and South Broadway Street (formerly High Street) to be
demolished with the affected companies not staying in the
area.\autocite{Akron4}

Located in Downtown Akron for the city's University, University Park
consists primarily of University campus buildings, residence halls,
along with retail and other apartments, and is bordered by Middlebury
and South Akron.  Most residents attend the University of
Akron\autocite{Akron5}, and many students hold jobs both on and off of
campus.

Despite having industries, retail, and other companies, these 4
neighborhoods still have the lowest per-capita incomes.  This could be
for one or more reasons including companies not hiring or they have
specific requirements such as a minimum education level or job
experience.

\section{Statistics: Poverty in the United States}

Similar to Akron, the United States as a whole is facing its economic
issues.  22\% of adults can not pay all of their monthly bills, over
25\% had to skip important medical procedures in 2017 since they
couldn't afford them, 38\% think they would be able to get by on their
retirement savings, 40\% can not cover emergency expenses, and 43\% of
households can not afford basic items required to
live.\autocite{Long1}

About 65\% of jobs are predicted to require a college degree and/or
college education\autocite{CEW1}.  Additional studies also show that a
majority of children who are in low-income families have parents who
have not received any college education\autocite{Douglass-Hall2007}.

\section{Solution: Federal Government Intervention}

The free market cannot fully regulate itself so that poverty is not a
problem.  It has been tried in places, and a so-called "self
regulating free market" has always lead to increased poverty for the
majority.  But while poverty can not be fully eliminated, it can be
greatly reduced through economic policies.

Minimum wage and especially tipped wages should be changed to fit
inflation.  The minimum wage should be the same as the living wage or
the amount of money needed for necessities.  Doing so would be able to
lift millions out of poverty.  Additionally, a separate wage for
employees who also receive tips should be done away with, and tipped
employees should receive their legal wage along with the tips earned.

In cities with abandoned houses, buildings, and vacant lots of land,
the city government could offer compensation for renovating or
building new homes, stores, or other buildings.  Doing so would be
able to boost the area's housing market and bring more jobs to the
city.

Access to healthcare continues to be a burden for many.  In 2017 one
out of every 5 adults without health insurance\autocite{kff1}.  The
Medicaid system could be expanded to everyone, leaving money that
would have gone to cover medical bills and expenses for other
necessary costs such as food, clothes, rent, and more.

Many employees end up trying to delay medical procedures or overwork
themselves due to sick leave or paternity/maternity leave being
unpaid\autocite{dol2}\autocite{dol3}.  Neither being sick or having a
child should have to be huge financial burdens, and even if the entire
leave is not paid for, a livable amount of money should still be
covered.

The United States has the highest incarceration rate in the
world\autocite{cnn1}.  When people who are incarcerated get out, they
have trouble finding a house, getting a job, and getting their life
back together.  The justice system should be reformed so that prisons
are no longer filled with non-violent and low-level offenders, and
provide ways to help the offenders become a part of society again.

\section{Conclusion}

Despite an area having industry, educational opportunities, and access
to services, the costs can still outweigh the positives, leaving many
unable to afford necessities.  With government intervention, these
problems could effectively be reduced.  While poverty is inevitable,
it can be controlled so it would not need to be as bad as it is.

\printbibliography

\section*{Notes}

\begin{itemize}
\item Paper originally written for ``Survey of Basic Economics''.  It
  has not been reviewed or approved by anyone.  It accomplished its
  goal of being submitted for a grade, and that's what mattered.
\item This version has been revised on 12 December 2023 and 24 May
  2025, due to typographic issues and some grammatical errors, as well
  as formatting and link issues on 13 August 2024.
\end{itemize}

\end{document}
