Poverty anywhere is a threat to prosperity everywhere. Poverty and prosperity are intricately connected. A rise in poverty is directly related to a reduction in demand in the economy thus affecting growth in the short and in the long term. The short-term and long-term effects on growth will depend on the nature of demand that has reduced, but in general, the effect does affect short and long-term growth. Watch the video to understand how intricately are poverty and prosperity connected.