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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 22 2013: There have been a number of ideas expressed to end poverty upon what a government can do. I am hesitant to address what can be done because I am not sure what causes poverty. Poverty has been described as the absence of means to generate wealth. An economic situation. I believe that everyone is born with some innate "capital" (talents) that could be used to create their wealth allowing for those who are distressed physically or mentally. Grow a crop of grain, sing great music, build an ipad, innate talents that could led to wealth. Granted, to develop these talents could require formal education, investment of other wealth, etc. etc. But what of poverty?
    When you look at small tribes living in the amazon jungles, you don't see a lot of poverty. Not a lot of great wealth either.
    There seems to be a balance. When we look at great cities, we see great poverty. When we see one group of people drive another group away from their wealth (Darfur), we see poverty. So is a product of great societies, great poverty? Is this the cause for the effect?

    The taking of other people's properties can be addressed. Small takings is a violation in most Great Societies. Big takings like Darfur need to be addressed, but I think can be resolved. That leaves Great societies, great poverty.
    So, we are left with at least three solutions.
    1. It is what it is, so live with it.
    2. Take away wealth from those that have it and give it to those that don't.
    3. Don't know yet, but one and two are not acceptable.
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      Jan 24 2013: poverty is the cause of capitalism, someone has to make less so others can make more
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        Jan 24 2013: You are assuming that there is finite amount capital and we live in a closed society. Which we don't.
        There is an endless supply of capital, it is in everyone of us. Some have used theirs well and have converted their capital into wealth. Others have not and they live in poverty. Now there are people in poverty who are sick, or for some reason can not expend their capital. There are others that don't know how to, don't want to, are afraid to, every reason. But it is not because others have used their capital wisely.
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          Jan 24 2013: If you look at capital that way, then where does prostitution end? Whether I prostitute my mind or my body what is the difference.

          Truth is we just need to realize that money is fake and that ultimately we don't need money
      • Jan 24 2013: Casey, we can't go back to the past, can we?

        Money was invented for a reason. It was the only way for people to satisfy people's different needs. Barter had so many faults. If you wanted to exchange your cow for, say, a horse, you were obliged to find a given person who had horses AND was willing to exchange it for a cow. Furthermore, what if this person was not at all against this possible exchange, but thought his horse had more value than my cow. What could we do then? I can't give him 1/2 a cow, can I? Money solves all these problems. That's why we need it. If not, getting food on a daily basis would be impossible.

        Money is not evil per say. I think it has just gotten way out of our hands. We weren't able to distribute it properly from the start, and nowadays you can make money just doing nothing (e.g. Derivatives). I wish I had the answer, but I don't. Maybe we've got ourselves into a big hole, but going back is not a viable choice now.
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          Jan 24 2013: Good day Matias,

          We don't need to travel to the past, because if history has taught us anything thing it is that it repeats itself. This is because we are in circle discovers. But those can end we no longer need to discover circles(use broadly) thing cause/effect, ying/yang, equal but opposite reaction. And the likes

          Money is just a form of energy exchange. My question to you how w-holistic of answer do you want that we can and could get rid of currency

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