Poverty and inequality: why it matters

What keeps people in Poverty?

Unemployment substantially increases in the risk of poverty. The longer a person is unemployed, the greater the risk of living in poverty.

People in poverty suffer increased levels of physical and mental illness. Poverty is associated with higher stress levels for individuals, which can contribute to smoking, substance abuse, or an unbalanced diet.

There is a strong connection between disability and poverty. This is a result of a combination of the high and continual costs of medication, equipment or aids, housing, transport, and services related to personal care or maintenance of a person’s home, along with income deprivation.

Lack of opportunity for one generation tends to translate into lack of opportunity for the next. In some families, there are no resources to support others in the family if things go wrong. In many families, children begin with little hope for the future, when they should believe they have the potential to achieve anything.

There is also increasing evidence that poverty is focused in certain geographical locations. These tend to be on the urban fringe, in large housing estates, and regional and rural areas. Economic re-structuring in industries that traditionally accessed semi-skilled and unskilled labour has contributed to this picture.

It is not only the complexity of poverty that keeps people there, but also the failure of society and governments to work out solutions. The National Coalition Against Poverty is calling on the Federal Government to convene a Royal Commission into Poverty. This would focus on specific national and targeted strategies and policy opportunities.

Addressing poverty needs a multi-pronged attack and the involvement of all parts of the community, business and government.

Specific action is also needed to progressively increase social security payments to a more adequate level; boost investment in effective employment assistance; and bolster essential social support infrastructure.

Adequate income is crucial, but there are other services and supports that will reduce poverty. These include policies to increase availability of low cost housing, essential services like health care, community care, child care and employment assistance, and community development and prevention initiatives. Whether directly facilitated by government or community, these measures can provide people with better opportunities, and a higher capacity to take advantage of those opportunities.

As Sir William Deane said when he was Governor General "The ultimate test of our worth as a nation is how we treat the most vulnerable and disadvantaged of our people". In such uncertain and changing times working together to build an Australia which is truly inclusive must be a priority for us all.