Improve household consumption expenditure management

Oct 13, 2025 by vinooalluri.com 116 views

Introduction

Poverty is a complex and multifaceted issue that affects millions of people worldwide. The Covid-19 pandemic has exacerbated poverty levels in many countries, including Indonesia. In this context, understanding the factors that contribute to poverty is crucial for developing effective policies to reduce poverty. This study aims to analyze the factors that affect poverty levels in Medan, a city in North Sumatra Province, Indonesia, during the Pandemi Covid-19 using the path analysis method.

Background

Poverty is a condition when a person cannot meet their basic needs, such as food, clothing, residence, education, and health. The Covid-19 pandemic has had a devastating impact on the global economy, leading to widespread job losses, reduced income, and increased poverty levels. In Indonesia, the pandemic has affected many people, particularly those in urban areas like Medan. Understanding the factors that contribute to poverty in Medan is essential for developing effective policies to reduce poverty.

Methodology

This study uses the path analysis method to analyze the factors that affect poverty levels in Medan. The path analysis method is a statistical technique used to analyze the relationships between variables. In this study, the exogenous variables analyzed are household consumption income, household consumption expenses, and population growth rates. The endogenous variable analyzed is the number of poor people and total population. The data used in this study is secondary data obtained from the Central Statistics Agency (BPS) of North Sumatra Province.

Analysis of the Factors that Cause Poverty

Household Consumption Income (X1)

Low income due to the impact of the pandemic is the main factor that triggers poverty. Many households lose their livelihoods, so the income that is usually used to meet basic needs is reduced dramatically. This reduction in income has a significant impact on poverty levels, as households are unable to meet their basic needs.

Household Consumption Expenditure (X2)

In the midst of uncertain economic conditions, consumption expenditure also changes. People are forced to reduce expenses for secondary and tertiary needs, even in some cases, basic needs have to be ignored. Unplanned expenditure can cause the household to be trapped in a circle of poverty. This is because households are unable to manage their finances effectively, leading to a reduction in income and an increase in poverty levels.

Population Growth Rate (X3)

High population growth often contributes to an increase in the number of poor people. When the population grows faster than regional economic capacity, pressure on resources, public services, and employment increases, which has an impact on poverty. This is because the increased population puts pressure on the existing resources, leading to a reduction in the quality of life and an increase in poverty levels.

Number of Poor People (Z)

In the end, an increase in the number of poor people contributes to greater social problems, such as increasing the need for social assistance and health services, as well as decreased quality of education. This is because the increased number of poor people puts pressure on the existing social services, leading to a reduction in the quality of life and an increase in poverty levels.

Conclusion

Through this analysis, it is clear that the three factors under study have a significant influence on the poverty level in Medan during Pandemi Covid-19. The results of this study provide important insights for the government and stakeholders in formulating more effective policies in poverty reduction. By understanding the relationship between income, expenditure, and population growth, precise measures and intervention can be done to help the most vulnerable society. In addition, this study is a reference for further research in a broader and in-depth context regarding poverty in Indonesia.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase household income: The government and stakeholders should focus on increasing household income through job creation and income-generating programs.
Improve household consumption expenditure management: The government and stakeholders should provide training and education on household consumption expenditure management to help households manage their finances effectively.
Control population growth: The government and stakeholders should implement policies to control population growth, such as family planning programs and education on the importance of population control.
Increase social services: The government and stakeholders should increase social services, such as healthcare and education, to help reduce poverty levels.

Limitations

This study has several limitations, including:

Data limitations: The data used in this study is secondary data obtained from the Central Statistics Agency (BPS) of North Sumatra Province. This data may not be comprehensive or up-to-date.
Methodological limitations: The path analysis method used in this study may not be able to capture the complex relationships between variables.
Sampling limitations: The sample used in this study may not be representative of the entire population of Medan.

Future Research Directions

This study provides a foundation for further research on poverty in Indonesia. Future research should focus on:

Examining the impact of poverty on health outcomes: This study should examine the impact of poverty on health outcomes, such as mortality rates and disease prevalence.
Analyzing the relationship between poverty and education: This study should analyze the relationship between poverty and education, including the impact of poverty on educational outcomes.
Developing effective policies to reduce poverty: This study should develop effective policies to reduce poverty, including policies to increase household income, improve household consumption expenditure management, control population growth, and increase social services.

Introduction

Poverty is a complex and multifaceted issue that affects millions of people worldwide. The Covid-19 pandemic has exacerbated poverty levels in many countries, including Indonesia. In this context, understanding the factors that contribute to poverty is crucial for developing effective policies to reduce poverty. This article aims to provide answers to frequently asked questions (FAQs) about factors affecting poverty levels in Medan during Pandemi Covid-19.

Q: What are the main factors that contribute to poverty in Medan during Pandemi Covid-19?

A: The main factors that contribute to poverty in Medan during Pandemi Covid-19 are household consumption income, household consumption expenditure, and population growth rates.

Q: How does household consumption income affect poverty levels in Medan?

A: Household consumption income is a critical factor that affects poverty levels in Medan. Low income due to the impact of the pandemic is the main factor that triggers poverty. Many households lose their livelihoods, so the income that is usually used to meet basic needs is reduced dramatically.

Q: How does household consumption expenditure affect poverty levels in Medan?

A: Household consumption expenditure also changes in the midst of uncertain economic conditions. People are forced to reduce expenses for secondary and tertiary needs, even in some cases, basic needs have to be ignored. Unplanned expenditure can cause the household to be trapped in a circle of poverty.

Q: How does population growth rate affect poverty levels in Medan?

A: High population growth often contributes to an increase in the number of poor people. When the population grows faster than regional economic capacity, pressure on resources, public services, and employment increases, which has an impact on poverty.

Q: What are the consequences of poverty in Medan during Pandemi Covid-19?

A: The consequences of poverty in Medan during Pandemi Covid-19 are severe. An increase in the number of poor people contributes to greater social problems, such as increasing the need for social assistance and health services, as well as decreased quality of education.

Q: What are the recommendations for reducing poverty levels in Medan during Pandemi Covid-19?

A: The recommendations for reducing poverty levels in Medan during Pandemi Covid-19 are:

Increase household income: The government and stakeholders should focus on increasing household income through job creation and income-generating programs.
Improve household consumption expenditure management: The government and stakeholders should provide training and education on household consumption expenditure management to help households manage their finances effectively.
Control population growth: The government and stakeholders should implement policies to control population growth, such as family planning programs and education on the importance of population control.
Increase social services: The government and stakeholders should increase social services, such as healthcare and education, to help reduce poverty levels.

Q: What are the limitations of this study?

A: This study has several limitations, including:

Data limitations: The data used in this study is secondary data obtained from the Central Statistics Agency (BPS) of North Sumatra Province. This data may not be comprehensive or up-to-date.
Methodological limitations: The path analysis method used in this study may not be able to capture the complex relationships between variables.
Sampling limitations: The sample used in this study may not be representative of the entire population of Medan.

Q: What are the future research directions for this study?

A: This study provides a foundation for further research on poverty in Indonesia. Future research should focus on:

Examining the impact of poverty on health outcomes: This study should examine the impact of poverty on health outcomes, such as mortality rates and disease prevalence.
Analyzing the relationship between poverty and education: This study should analyze the relationship between poverty and education, including the impact of poverty on educational outcomes.
Developing effective policies to reduce poverty: This study should develop effective policies to reduce poverty, including policies to increase household income, improve household consumption expenditure management, control population growth, and increase social services.

Conclusion

Poverty is a complex and multifaceted issue that affects millions of people worldwide. The Covid-19 pandemic has exacerbated poverty levels in many countries, including Indonesia. Understanding the factors that contribute to poverty is crucial for developing effective policies to reduce poverty. This article provides answers to frequently asked questions (FAQs) about factors affecting poverty levels in Medan during Pandemi Covid-19.