Poverty trap means condition of poor which can not can be changed until they will be helped financially and economically to start from external sources. Many economists argue that - condition of poverty is not permanent because many rich countries in history had become poor and many poor countries have become rich , that's why concept of poverty trap is misleading . They told that poor are poor because of their mentality have over time they did not get access of resources due to restrictions and making unfair playing field by governments for small businesses by imposing regulation and barrier to entry which imposes extra cost for small businesses.
Other side of story is quite opposite and argue that poor are poor because of geographical differences and exploitation by rich countries to their resources and can not grow without external help because a little external help will increase their income as well others due to multiplier effect of those external help and help them to get out of poverty trap . They think poverty trap is man made and government intervention can eradicate it easily.
Best ways are given in the book "poor economics". First of all understand the condition, choices of poor by interacting with them on ground level. Collect the right data by running various experiments and understand the behaviour of poor and how their choices change over time with help and other incentives. Then you can find the best way to attack the problem with right tools by maximising the benefits.
What's your views people??
The trap is real, and crypto isn't helping to fix it. It was always said that crypto is the poor man's money, but crypto has become basically unattainable for them while the rich pore in the excess money.
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True. powerful people is becoming more powerful and poor have to rely on the fate of rich, right solution will be to create right environment after a little bit help ( to lift of from extreme poverty).
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I am not an economist but I hope my own view will make sense in its own little way.
I live in Africa and I think both views are correct in their own way.
Exploitation from its own people as well as the external ones have been a major cause of the challenge we face till date. To attain that standard where we can be said to be rich, there must be intervention from the government and other necessary external bodies.
And talking about people are poor because of their mentality is also true.
But I think the solution will also involve external bodies. Those who will enlighten them and free their mind from the cage it has been long locked in.
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that's good if you have watched or observed people from close.
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Thanks..
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