Question

Suggest ways to reduce poverty, touch on whether government welfare has achieved its original objective.

Answer 1

Poverty is defined as income less than $1.90 per day per person. Their income is so low that they cannot afford basic necessities.

Ways to reduce poverty -

1. Education
2. Raising minimum wages
3. Create employment
4. Allow income equality.
5. Allow paid leaves and paid sick leaves.
6. Convert unskilled labor into semi-skilled and skilled to face changes in the structure of the economy.

Government is being very slow in reducing poverty. Inflation in the economy increases poverty. Contractonary fiscal policy to reduce inflation further reduces employment and increases poverty. Regressive Tax system also increases income inequality.