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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 19 2013: 7. PHASE OUT ALL WELFARE PROGRAMS O OVER A 5 YEAR PERIOD.
    8. Legalize drugs . Why? To stop the billions in wasted spending on the “war”and to be able to regulate and tax a multi-billion dollar industry.
    • thumb
      Jan 19 2013: 9. Repeal the Constitution
      10. Tax everyone at 100% (We need to get the funds to make all these payments)
      11. Find someone who has the courage to implement and enforce all these rules.
    • Jan 29 2013: Drugs are a blight on the world. The US druggies continue to buy and the disease endures.

      The Trillions of Dollars in wasted spending on the never-ending WARS need be brought to
      a quick stop.
      Our time of freedoms, held so dear, in the1950's, have disappeared.
      Young adults of today have no idea of what this nation was capable of doing.
      Our politicians had too much manna in front of them, not to sample.
      Now we will pay.

      TODAY the US has 147 operational military bases throughout the world.
      TODAY the US makes unending WAR on foreign nation's shores.
      TODAY the US kills daily innocent civilians and supposed Terrorists via Drones.
      TODAY the US practices Torture.
      TODAY the US leads the world in Weapons manufacturing and sales. x10,
      TODAY the US leads the world in Overcrowded Prisons and Prisoners.
      TODAY THE US DOES THESE THINGS.

      TODAY the US has enough food to feed the world's starving peoples.
      BUT DOES NOT DO THESE THINGS.

      So how can a system of Capitalism eliminate poverty?
      IT CAN NOT. IT'S GOVERNMENT WILL NOT.

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