How Covid is Impacting People Living in Poverty

Riley Smallwood

Dr. Colley

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English 12


Poverty rates across the globe are growing as government reliefs decline despite the enduring economic distress triggered by the covid-19. As of December 2020, the devastation of the Covid-19 pandemic has been severe, with tens of million confirmed cases of infections and more than one million deaths. The infection has significantly crippled and confounded the global economy, with statistics showing the virus has impoverished people and triggered poverty worldwide. Since the emergence of the infection in December 2019, in China, it is projected the pandemic could push more than 500 million people into poverty, especially in less developed countries (Christensen). Covid-19 has been disastrous because it has increased the proportion of people in poverty, the gap between the poor and the rich has widened, and the poorest people are projected to see their incomes drop. This poverty can decrease if worldwide we were to offer better job opportunities and increase the compensation to make the risk balance one another. If the government were to also help those already in poverty, they need to build more shelters and institutional programs for homeless and families.

The global widespread of covid-19 has increased the proportion of people in poverty. Estimates propose that over 80 million people have fallen below the threshold of the extreme poverty line of $2 per person due to Covid-19 (Witter). For example, the infection has led to massive containment intervention measures such as lockdowns that have resulted in the loss of income among many people leading to poverty. The people who have become impoverished include those currently living below the poverty line, and the vulnerable whose means of income have been jeopardized. Many people in different sectors have had to work without being paid, while others have been laid out, resulting in financial challenges that have led to poverty. We need to pay those who have not and increase current pay to maintain better chances to stay out of poverty. In addition to the increased proportions of poverty among the people, the pandemic has widened the inequality gap between the haves and have not.

The covid-19 pandemic has widened the gap between the poor and the rich, heightening the level of poverty. For instance, the number of billionaires and millionaires across the world has increased significantly since covid-19 while the working class has been laid out, leading to a widening gap between the poor and the working class. Many small businesses that support numerous households across the world have shut down, leading to loss of employment and source of income, thereby plunging many families into extreme poverty (Gavi). Projections show that a wide gap between the rich and poor and poverty will continue to increase due to devastations of the covid-19 until the global economy returns to normalcy. We must open businesses back up, so that parents can support their families and not have to rely on a government check that may never come. Nevertheless, the pandemic has opened new ways of conducting business that has eased operations during containment measures.

Covid-19 has led to new opportunities despite the negative impact it has had on households and the global economy. For example, the pandemic has triggered the establishment and the transition of businesses from physical mode to online platforms.  As a result, people can work from their homes using technological devices that ease the communication and ways of doing business. For instance, people can use zoom to hold meetings and conferences and delegate various operations of the organization. Notwithstanding the adverse effect of the infection, the pandemic has revolutionized novel ways of doing business that will transform the global economy even further. Notwithstanding this benefit, estimates show the pandemic will drop the income of the poorest in the society.

Covid-19 has made the poorest people across the world anticipate seeing their incomes drops, which will ultimately result in poverty. The relative and absolute income gap is projected to drop among the working population, which will lead to financial constraint and destitution (Christensen). For example, due to the pandemic, many businesses are underperforming and facing numerous financial hurdles. As a result, these businesses are lowering wages, which is impacting many workers. Statistic suggests that the infection will increase the inequality specifically in lower-income and exacerbate wealthier gap across many households.

The covid-19 pandemic has exerted a tremendous strain on the global economy leading to widespread poverty. The infection has led to the adoption of containment measures such as restriction of movement, lockdowns, and closure of businesses that have crippled the livelihood of many people leading to poverty. Covid-19 has been disastrous because it has increased the proportion of people in poverty, the gap between the poor and the rich has widened, and the poorest people are projected to see their incomes drop. To alleviate the dire devastation of the infection, governments should continue providing stimulus packages and incentives, particularly to small and medium businesses, to revamp the economy and get people back to jobs.



Works Cited

Christensen, Zach. “How is Covid Impacting People Living in Poverty Worldwide?” Development Initiatives, 18 Oct. 2020, Accessed 24 Dec. 2020.

Gavi. “From Equality to Global Poverty: How Covid-19 is Affecting Societies and Economies.” Gavi, the Vaccine Alliance, 30 Sept. 2020, Accessed 24 Dec. 2020.

Witter, Arielle. “5 Ways COVID-19 is Exacerbating Global Poverty.” ONE, 26 Oct. 2020, Accessed 24 Dec. 2020.


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