Directions: Read the following excerpt from the e-text and answer the question below using the RACES method. As a reminder, you must use evidence from the provided text.

What Are the Region's Economic Challenges?
Many countries, including Mexico, have made significant strides against difficult economic problems. Yet, severe challenges remain. Many people in Middle America live in poverty. Haiti is by far the poorest country, with a GDP per person of less than half that of the next poorest country, Honduras. In nearly every country in the region, many people live in poverty.
Poverty hurts an economy in several ways. First, the government has to use resources to help people living in poverty so that they can survive. Second, poverty limits educational opportunities. That holds back economic growth, because workers with little education or training are less productive than skilled workers.
Income inequality is a problem as well, with a growing gap between the rich and poor. The richest 20 percent of the population earn more than half of all the country's income in Costa Rica, the Dominican Republic, Guatemala, Honduras, Mexico, Nicaragua, and Panama.
Crime and corruption are another source of economic challenges for Mexico and many Central American countries. When corrupt government officials may demand payments as a condition for doing business, businesses may avoid creating jobs in that country.
Due to poverty and the illegal drug trade, the region has a high rate of crime, which also hurts the economy. In 2014, Honduras had the highest murder rate in the world. High crime rates also discourage investment. Businesses do not want to open offices or factories in a country if they think they will be robbed or face a risk of violence.
A lack of good infrastructure or networks of structures such as highways, clean water supplies, and electrical grids-also holds the region's economy back. If a business cannot count on reliable transportation to its customers or on clean water or electricity, then that business is not going to create jobs in a region.

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Question: How does poverty harm a country's economy? Use the RACES strategy.

5 answers

RACES Response:

R: Poverty harms a country's economy in several significant ways.

A: One major issue is that the government must allocate resources to support individuals living in poverty, which diverts funds from other essential services or infrastructure development.

C: The excerpt states, "the government has to use resources to help people living in poverty so that they can survive." This highlights how poverty places a financial burden on the government, limiting its ability to invest in economic growth.

E: Additionally, poverty restricts educational opportunities for many individuals, leading to a less skilled workforce. The text notes, "poverty limits educational opportunities. That holds back economic growth, because workers with little education or training are less productive than skilled workers." This emphasizes the direct correlation between poverty and the overall productivity of the labor force.

S: In conclusion, poverty significantly undermines a country's economy by forcing governments to allocate critical resources for survival aid and by limiting educational opportunities, which in turn diminishes workforce productivity and economic growth.

can you say that with simpler words

RACES Response in Simpler Words:

R: Poverty hurts a country's economy in important ways.

A: One big problem is that the government has to spend money to help people who are poor, which takes money away from other important things.

C: The text says, "the government has to use resources to help people living in poverty so that they can survive." This means that dealing with poverty uses up money that could be used for things like roads or schools.

E: Also, when people are poor, they often can't get a good education. The text explains, "poverty limits educational opportunities. That holds back economic growth, because workers with little education or training are less productive than skilled workers." This shows that if people don’t get a good education, they won’t be as good at their jobs, which slows down the economy.

S: In summary, poverty hurts a country's economy because it forces the government to spend money on immediate needs and limits people’s education. This makes the workforce less skilled and slows down economic growth.

OK LESS SIMPLE

RACES Response:

R: Poverty negatively impacts a country's economy in several significant ways.

A: One primary issue is that the government must spend resources to support those living in poverty, diverting funds from critical public services and infrastructure projects.

C: The text states, "the government has to use resources to help people living in poverty so that they can survive." This illustrates how addressing poverty creates financial strains on the government, limiting its ability to invest in economic development and growth.

E: Additionally, poverty restricts educational opportunities for individuals, which results in a less skilled workforce. The excerpt notes, "poverty limits educational opportunities. That holds back economic growth, because workers with little education or training are less productive than skilled workers." This highlights how a lack of education due to poverty leads to lower productivity among workers, further hindering economic progress.

S: In conclusion, poverty adversely affects a country's economy by forcing the government to allocate essential resources to assist those in need and by limiting educational access. This results in a less skilled workforce and ultimately slows economic growth.