Poverty Cycle

Poverty Cycle

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  • Low Income: Aliaune has a low income from his job as a barber in Senegal.
  • I'm sorry Aliaune, you spent all your money on food and rent, theres nothing to save
  • Okay then I'd like to put 50% of what I've already saved into investments.
  • You don't have anything in your savings.
  • Aliaune now doesn't have enough money to keep some of his physical capital, the chairs.
  • He now has very little business and therefore low productivity.
  • He didn't have enough money to sustain his business, and went to work as a farmer with a lower income.
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