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Causes & Policies of Poverty
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How can lack of education cause poverty?
Without skills/qualifications, people can’t get good jobs → low income.
Why might unemployment increase poverty?
No job = no income → can’t meet basic needs
How can poor health trap people in poverty?
Sick people can’t work or must spend income on healthcare.
How does corruption contribute to poverty?
Government money/resources are misused → less for public services.
How do natural disasters create poverty?
Destroy homes, jobs, farms → families lose income and security.
How does progressive taxation help reduce poverty?
Rich pay more tax → money used for social programs for the poor.
How do minimum wage laws help reduce poverty?
Ensure workers earn a fair wage → reduces “working poor.”
What’s a possible drawback of minimum wage laws?
Employers may hire fewer workers or shift to informal jobs.
How does free education reduce poverty?
Builds skills → better jobs → higher income.
What’s the main drawback of free education policies?
Expensive for the government; benefits take time.
How does healthcare reduce poverty?
Keeps people healthy so they can work and avoid medical debt.
What is a risk of cash transfers or welfare programs?
Expensive; risk of dependency or corruption.
How does microfinance help reduce poverty?
Provides small loans to start businesses.
Why might infrastructure projects reduce poverty?
Roads, electricity → more jobs and better access to markets.
Why can land reform reduce rural poverty?
Landless farmers gain land → food security and income.
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