In market economies, people fall into poverty under two conditions. First, people cannot earn enough money to cover their cost of living. This happens when people do not have enough assets and abilities to sell to others (e.g., due to unemployment or disability) and/or if they are confronted by high costs of living (e.g., due to sickness). Second, the people under the first condition do not receive aid from anybody. Even if people do not have enough money to make a living, they need not fall into poverty as long as they have good friends, families, or adequate insurances.
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