cyclical poverty

Cyclical poverty refers to poverty that is widespread but temporary. In nonindustrial societies, this is often due to temporary food shortages from natural events or poor agricultural planning, leading to temporary misery. In industrialized societies, the primary cause is fluctuations in the business cycle, resulting in mass unemployment during economic depressions or recessions. Historically, this was seen as an inevitable consequence of market regulation, with relief provided until the economy improved. Modern governments actively try to mitigate these effects through economic policies and direct assistance to the unemployed.1