Final answer:
The aggregate income of poor communities can be significant despite individual incomes being low. Poverty is linked to broader issues such as crime, health, and the intergenerational transfer of wealth and human capital. Programs like microcredit and microsavings can assist in wealth accumulation for low-income families.
Step-by-step explanation:
While individual incomes may be low, the aggregate income of poor communities can be substantial. Although poverty is widespread, especially in low-income countries, and income levels might average only a few US dollars per day, the collective economic power of a community should not be underestimated. Impoverished populations may struggle with income inequality, as shown by Lorenz curves, and these disparities impact not only present wealth but can also have intergenerational effects on human capital, such as health and education.
Poverty often leads to higher crime rates, as individuals seek illegal means to meet their basic needs, creating social unrest and adding to the cycle of poverty. Additionally, poverty has severe implications involving physical and mental health, and access to vital resources such as adequate housing, education, and health care is significantly limited. This is evident in both the 'feminization of poverty,' where women tend to be disproportionately affected, and the disparity in wealth accumulation due to factors such as access to microcredit and microsavings programs.