Overview of the Issue Presented in the News Article Essay

Overview of the Issue Presented in the News Article - Essay ExampleThe facility of child appraise credit facilitates families to have certain amount of credit for all dependent children in against federal income tax. Moreover, the word describes that in the US, there argon various sorts of programs which are initiated with the objective of assisting the poor. These programs include healthcare facilities as intumesce as tax benefits for facilitating the people who are in need. These are the component parts which are involved in the article with regard to scantness in the US (The Economist Newspaper Limited, 2012). Model or Economic Theory of Poverty The model or economic hypothesis which is related to with the issue i.e. poverty as depicted in the news article is as follows Neo-classical Theory The model or economic theory of poverty which is related with the issue i.e. poverty in the news article is the neoclassical theory. The neoclassical theory states that income is distri buted in accordance with the hard work as well as skills which are devoted by individuals. In this respect, the people who are poor are considered to be lazy as well as to be miss in terms of competencies to perform their activities in an efficient manner. Moreover, in accordance with this theory, wage structure is also determined to be a major(ip) factor for poverty. The wage structures of laborers are not sufficient in order to bear up the cost of living of the whole family. Moreover, the competencies of laborers assist in find the wages to be offered. The laborers are paid according to their skills as well as abilities. Thus, this theory is also based on the concept of marginal productivity conceptions. The workers are required to devote significant time in work with the intention of acquiring... he model or economic theory of poverty which is related with the issue i.e. poverty in the news article is the neoclassical theory. The neoclassical theory states that income is distr ibuted in accordance with the hard work as well as skills which are devoted by individuals. In this respect, the people who are poor are considered to be lazy as well as to be lacking in terms of competencies to perform their activities in an efficient manner. Moreover, in accordance with this theory, wage structure is also determined to be a major factor for poverty. The wage structures of laborers are not sufficient.Moreover, the competencies of laborers assist in determining the wages to be offered. The laborers are paid according to their skills as well as abilities. Thus, this theory is also based on the concept of marginal productivity conceptions. The workers are required to devote significant time in work with the intention of acquiring enough financial resources for supporting their families as well as meeting all their requirements in an effective manner. The neo-classical economic theory states as well as predicts the different causes of poverty which include the notion t hat individuals seek to improve their single economic conditions without any consideration for other individuals. This signifies that individuals invest with the motive of improving their respective well-being. The poor people in this regard do not possess enough incentives for improving their financial positions.