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What can governments do to end poverty in their countries? Is a solution possible under capitalism?

Hello, I come from Argentina, and in my country, poverty is an issue we still can't eradicate, even though extreme poverty has been around for many decades now.

What still baffles me is the fact that although the Government gives away money to those with reduced incomes, poverty is as bad as always. Poor people can now (at least) fulfill their basic needs, but they have now become dependant on the Govt to give them the necessary resources for life (and politicians do not care about this, since this way they can keep on "buying" their votes with cash). They don't have jobs (and some do not even bother to find one) and most still live in slums under really poor conditions. So, it's obvious this solution is only benefitial in the short run... eventually the Government is going to run out of money and we'll still have the same number of people in the streets.

Moreover, I read yesterday how India is going to start doing the same thing, but I guess that probably won't go anywhere either.

Now, what do you think is the solution to stop this vicious circle of poverty? What is your Government doing about it?

Bear in mind that Latin America has just extreme poverty levels (not as much as Africa), but still much more than the First World countries. At least in my country there is a surprisingly high number of slums (check some photos in wikipedia: http://es.wikipedia.org/wiki/Villa_miseria )

In my opinion, emphasis should be made on giving labour to these people outside-the-system. But for that, we need to offer public AND quality education. Yet I'm conscious that a malnourished child is not going to be able to be properly educated, is he?. So what can we do to ensure that child will have a better future? It's difficult to come up with a solution, but we're in the 21st Century now, it's about time we stopped poverty.

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    Jan 2 2013: A solution to Corruption would enable the revenue needed to fund solutions for poverty. If all governments take a serious stance against the earnings genererated while in office by the politicians, leaders and their respective famalies they would realize enormous amount of wealth being stolen off government contracts and by offering political favors.

    India, Pakistan, Latin Americas, USA and several countires have the same going on all the time. Each politician should have a set income and all wealth assimilated by them and thier families should be accounted for while they are in office. All income and wealth that cannot be accounted for shoudl be seized and invested in programs to provide support, education, and industires that help the poor. The amount of politicians with millions, fi nto billions stashed away is a blatant indication of corruption in these countires. These are the moneis that are not being spent to develop the country, economy and poverty.

    Even the wealthy individuals and corporations need to contribute to the country and solutions for poverty. Many do today but we need more participation. After all 100 million or 1 billion gets them enough for a generation or two. What about the other excesses and where does it sit locked up?

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