Top 10 financial effects of pollution that make you poor

Pollution cost to the whole world is in trillions. The exact cost is not known. Because of no data management. So we refer guestimates only.

We can imagine how much it can be on the basis of simply cost of pollution to India which is nearly $80 billion per year. For Pakistan, it is $60 per year. But its standstill because of no updating to it.

Pollution is hitting everywhere in every sector of the economy. So each sector is paying its price. But each sector is also causing it in one way or the other.

The major financial effects of pollution of various types are ten that are as below.

1. The higher cost of land

Due to soil pollution, agricultural land becomes less fertile and less productive. So, it gives less output. Also, it needs more input to produce more. 

So we need more land to produce the food we need. It means soil pollution is the main factor that raises the cost of land in the production process.

2. Higher wages

Laborers demand more wages to meet the escalating bills which they have to pay. Because their medical bills rise due to the health impacts of pollution. They either want more wages or a raise in their medical allowance. 

Payroll becomes costlier than previously. So, it impacts all costs of production of goods and services.

3. Inflation

Rise in wages and cost of land, the prices of goods and services also shoot up. The higher level of inflation brings on dearness in the economy and the poor get poorer.

4. Slowdown

Because of the rising level of inflation people consume less. They eventually demand less. They can't afford more due to their weakening purchasing power. 

So, lower demand brings down the prices and producers have to reduce their production. So, we see a slowdown in the economy that cripples economic growth.

5. The low standard of living

Owing to slowdown huge layoffs are obvious. Workers ready to work on lower wages.

In this way, they make a compromise on less pay and adjust their stand of living by lowering it down further. So, the living standard of the public goes down.

6. Poverty

When people have more wants and lesser means to fulfill them they get poor. Owing to lower wages laborers cannot fulfill all their urgent needs and defer most of them. Poverty creeps into their life and they become absolute poor.

7. Backwardness

Poor can't afford the basic necessities of life. So their poverty brings on backwardness.

So their backwardness is natural because of having no civic amenities and education.

So, the fabric of society embraces their backwardness. It results in a rising level of crimes and lawlessness.

8. Corruption

If people don’t have the legit income to meet their needs they go for improper means. First people in power exploit their power to mint money.

By and by all people adopt malpractices to earn money. It becomes normal to try improper means to meet the needs. People don't think if a source is legit or not. So corruption gets rampant and merit vanishes from such societies.

9. Crime

Those who don’t have the authority to misuse they generally resort to street crimes. They become criminals to meet their basic needs. They don't remain contented on fewer and commit more and more crimes.

In the beginning, they do street crimes and then also try heinous crimes to earn more and more. Criminals have no caps on their wants.

10. Anarchy

When powerful do corruption so their writ is doom to weaken. People do not obey their orders by heart. Poor damn care of laws and openly break them.

If there is no or less rule of law in society it means it has anarchy. It means powerful people to enjoy every facility and subjects suffer from every malady.

So subjects don't compromise on their sufferings. They become anti-state and go for any limit to create disturbances. In such situations, the economy hardly delivers and growth gets negative.

So these are the top 10 financial effects of pollution. They cripple the economy and bring it to the verge of disasters.

Do you think there are some other financial effects of pollution? Please share them with us in the comments section below.