Poverty

• Absolute Poverty - when people lack the income to satisfy their basic needs.
• Relative Poverty - a lower standard of living compared to the economic standards of others living within the same economy (poor, but able to meet basic needs of food, clothing, shelter)
• Vicious cycle of poverty - once in poverty, it can be very difficult to get out
• Causes of Poverty:

  • Born into it
  • Unemployment / Unskilled Labour
  • Sickness / Age
• Government Policies to Reduce Poverty

  • Improve quantity and quality of education
  • Promote Economic Growth
  • Raise the Minimum Wage
  • Increase Benefits (especially for elderly and disabled)