Final answer:
Major adverse events like unemployment, illness, and divorce can force individuals into poverty, often due to financial stress and depletion of savings. The impact can be temporary or lead to lasting financial difficulties.
Step-by-step explanation:
People slipping into poverty can be attributed to major life events such as unemployment, illness, or divorce. Financial stress is a considerable factor leading to divorce, especially when couples begin with low assets, making it more likely for them to separate. The stress of unemployment goes beyond the absence of income; it can lead to a downward spiral where savings are depleted, lifestyle adjustments are made, and even after re-employment, individuals may earn less, affecting their self-worth and family dynamics. Recessions further exacerbate the situation by making new job opportunities scarcer and less lucrative. The consequences of such adverse events can be temporary for some, while for others, they may lead to long-term financial struggles.