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Causes & Policies of Poverty

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