- Poverty can be classified as two types; absolute poverty and relative poverty
- Absolute poverty occurs when the income of people is so low that at this point they cannot even afford their basic needs
- Relative poverty occurs when people are relatively poorer compared to other people in that country and is not a very harsh form of poverty
- One of the main causes of poverty is the vicious cycle of poverty wherein people are trapped in poverty and it's almost impossible for them to get out of it . To give you a better understanding of the vicious cycle of poverty, consider the following situation:
Person A has a family - He becomes unemployed- He cannot find a job anywhere- soon he becomes old and reaches his retirement age- due to the limited amount of money available his children may not be able to afford proper education and so may remain unemployed or in very poor paying jobs
- There are some policies that the government can employ to fight or eradicate poverty. These measures include:
1- improvement in quantity and quality of education
2- promoting or improving economic growth
3- Introducing or increasing the national minimum wage
4- Persuading multinational companies to set up in the country
5- Increasing the amount of or providing more generous state benefits
6- Improving the quantity and quality of land for farmers to grow more crops
- Some government policies can also be used as a measure of distributing income and wealth; these measures include:
1- taxation
2- provision/ providing cash benefits
3- free education and healthcare
- Absolute poverty occurs when the income of people is so low that at this point they cannot even afford their basic needs
- Relative poverty occurs when people are relatively poorer compared to other people in that country and is not a very harsh form of poverty
- One of the main causes of poverty is the vicious cycle of poverty wherein people are trapped in poverty and it's almost impossible for them to get out of it . To give you a better understanding of the vicious cycle of poverty, consider the following situation:
Person A has a family - He becomes unemployed- He cannot find a job anywhere- soon he becomes old and reaches his retirement age- due to the limited amount of money available his children may not be able to afford proper education and so may remain unemployed or in very poor paying jobs
- There are some policies that the government can employ to fight or eradicate poverty. These measures include:
1- improvement in quantity and quality of education
2- promoting or improving economic growth
3- Introducing or increasing the national minimum wage
4- Persuading multinational companies to set up in the country
5- Increasing the amount of or providing more generous state benefits
6- Improving the quantity and quality of land for farmers to grow more crops
- Some government policies can also be used as a measure of distributing income and wealth; these measures include:
1- taxation
2- provision/ providing cash benefits
3- free education and healthcare
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