Any attempt to assesses the poverty and wealth in any region requires an approach be developed against which the living standards of an individual or the entire household can be measured. The threshold is essential in determining the poverty lines—cutoff points that separate the poor from the rich. There are two techniques of constructing poverty line: absolute and relative poverty. The choice of research method of poverty and wealth is dictated by the issues of interest to the researcher and his or her research skills. However, qualitative poverty assessment method is the best because of the magnitude of information that it can derive—it also provides the most accurate and in-depth information for analysis. It is particularly suited for the identification of the issue, i.e., it addresses the question of who are the poor and the rich, and their overall perception of their conditions. It generally employees a broader definition of poverty than any other method, incorporating the processes and interactions between cultural, social, political, and economic factors—this means that it captures information from both relative and absolute poverty. The qualitative approach includes a wider range of poverty determinants such as income and consumption, vulnerability, security, basic needs, asset ownership, survival, powerlessness, health, nutrition, literacy, social relations, isolation, and self-respect. Additionally, it employs a wide range of data collection methods including but not limited to in-depth interviews, ethnographic observation, mapping and modeling, seasonality maps, Participatory linkage diagramming, well-being ranking, and time diaries. Through the use of these techniques, it is possible to generate an understanding of poverty as it is experienced and of the complex web of ideas of policy implementation.

There are various secondary data sources that can be used for poverty assessment. At the community level, local data is available and can be accessed from various federal and state agencies such as information regarding service availability in the community can be accessed from the Local administration or sectoral ministries. Also, information regarding water and electricity consumption, healthcare access can be accessed through respective departments that provide these services—from their records. Similarly, statistical institutions also provide a good secondary source of finding information regarding product purchase, household service availability, and income. Individual or household data on welfare components such as expenditure, income, household priorities, health, and perceptions are the most difficult to find in secondary sources. They are also the most flexible hence finding constant data is very difficult. Data that is the easiest to find are related to relative poverty because they are unlikely to be flexible.

Realistically, perfect income and equality cannot exist at the same time. Who will have the incentive to innovate to drive economic development in that kind of a scenario? It is true that wealth redistribution can help in achieving greater equality, faster economic growth, and reduction of poverty. But this will only be a short-term initiative. If the U.S were to redistribute its wealth equally to all adults, it would probably take less than a decade before the status quo is resumed. When it comes to building wealth, it is the financial education, money discipline, and proper execution that matters. Unless they are taught these things, the people who were previously poor will engage in consumption without making any effort to invest in their shares. Once it is spent, that money is not coming back. The rich on the other hand have high financial literacy; they will invest their shares in various sectors and will not make money mistakes, unlike their counterparts. That investment will produce returns after a few years, and the rich become wealthy again.

The United Nations classifies states regarding developed and developing based on their economic status such as level of industrialization, per capita income, GDP, GNP, and standard of living. Developed countries have a progressed economy; have high industrialization levels, higher standards of living. Developing nations have a struggling economy with lower standards of living. Comparing lives of people living in these two countries can be challenging, nonetheless, the following factors may be employed to compare their living conditions: life satisfaction, total income and consumption levels, availability and access to basic needs such as food, shelter, health care, clothing, education, transportation, and entertainment; life expectancy and mortality rates. The U.S is a developed country with a high standard of living, the middle class, and the underprivileged Americans are still, on average richer than their counterparts in developing countries in terms of total income. The U.S absolute poverty line is six or twelve times higher than the standards set for developing nations. Hence, when compared to developing countries, American poor are only underprivileged by the American standards. The poor in the U.S suffers less material deprivation than their counterparts in developing nations—they have better access to necessities like electricity, nutrition, healthcare, clean water, shelter, and transportation. American poor are provided with various programs to help them live a better life like affordable housing and food stamps. Additionally, many poor homes in America have access to internet, computers, and TV compared to those in developing countries, entertainment preferences, life aspirations, social isolation, self-respect and esteem (which is generally low), and low life satisfaction and quality.

The economic and military strengths that the U.S possesses cannot make the country immune from external shock. Fighting poverty and disease in developing countries is part of a smart national-security strategy. The U.S must put an effort to remove causes of instability such as poverty and social injustices in other countries that cause mass migration and instability. Additionally, apart from ensuring national security, supporting struggling nations on these issues is the right thing to do from a humanitarian and economic point of view. Economic underdevelopment in other countries will create weak institutions in the respective countries, leading to infective ways of curbing corruption, terrorism, war, and diseases. These factors can then destabilize the respective country and adversely affect the U.S or any other developed country as there would be a mass migration of people in search of better living conditions—this can bring security issues too. Apart from having bilateral defense agreements with countries that receive aid from the U.S, the initiative also boost the American economy by providing a new market for goods and services produced in the country. Hence to respond to minimize instability and migration, U.S should uproot the problem from the source, i.e., implementing strong policies on anti-poverty and security measures in developing countries. When the poor countries are stable, it lowers the odds that the U.S will need to intervene in them—they will be able to take care of their own epidemics effectively.

Additionally, U.S should put up workable programs to help its underprivileged people. This will ensure internal economic development as well as holding global competitiveness. Various strategies can be put in place from raising the minimum wage, investing in affordable education and training, and promoting employment opportunities for the natives. Additionally, U.S should respond to the problem of inequality to help it move forward economically.

A combination of different strategies can solve the U.S poverty crisis. The first strategy is to promote affordable education and training. The lack of quality early childhood and youth education and care is one of the primary barriers to climbing the social ladder. There should be adequate investment in Child Care and Development Block Grant, and Head Start which could ensure that children are children are provided with high-quality care and learning. Programs should also include pregnant and mothers such as home-visiting to help struggling families to get childcare they need help to improve the future of economic mobility. This is because early childhood intervention has a substantial long-term effect on education and economic attainment.

The rate of high-school or college drop-out by the youths is generally high in the U.S, especially from the economic struggling group. It is highly difficult for people with limited education and job skills to get employment in the country or any other place across the world. Hence, investment should be made in promoting high-school and college attainment by the youths. This includes providing financial incentives for public schools to offer classes in high return professions and offering affordable college tuition for youths from low-income families. Additionally, enhancing placement in higher education remediation classes, offering better university adoption measures, and offering education funds for youths from low-income households can help keep them in school to acquire skills and knowledge that can help them climb the social ladder more easily. Those who have a high-school diploma should be given vocational training for this course. Funds can also be directed to training programs that target low-income workers through the Work Force Investment Act.

Job creation is vital components of the country’s fight against poverty. The youth’s with skills and knowledge to enter the job market should be given an opportunity to get employment. This can only happen if there are enough jobs in the market. There should be enough investment in job creation strategies such as developing renewable energy sources, infrastructure rebuilding, and housing renovation. Youths can be given start-up funds to invest in their own small businesses and create jobs for themselves. At the job, there is a need to raise the minimum wage to help people spend while saving and investing to boost the economy.

Additionally, the problem connected to incarceration and its effect on the community should be tackled. This strategy acknowledges that there has been a high level of incarceration in the country especially for the Black men—this problem has a profound effect on the incarcerated, their families and the community both socially and economically. Incarceration leads to disordered families, narrow economic prospects and poverty, which can result in more criminality.

The action plan responds to the problem of poverty in the long-term hence it can take up to 5 years to be implemented considering that it has to be planned well so to work effectively. The plan will affect me regarding education as it will provide affordable education. I would look forward to competing for my education and find a job with much ease.

The information provided in the Federal Safety net does not change anything in my action plan; this is because my plan encourages dependency. It gives people incentives that encourage them to work hard for themselves rather than making them lazy to depend only on government intervention in the long-term.

The poverty level has remained constant because the government’s programs are designed to make people dependent on the government in the long-term. The U.S should be generous in helping its underprivileged; programs should be implemented that makes people independent and not dependent on the government for everything.