Q.Explain the economic causes of poverty.

Economic causes of poverty: low/slow growth, rapid population growth, unemployment, low productivity, unequal distribution, and shortage of capital.

Poverty in India has many roots; the important economic causes are:

1. Slow economic growth and low per-capita income — for long the economy grew slowly while population rose, keeping average income low and many people poor.
2. Rapid population growth — a fast-rising population eats up the gains of growth, lowers per-capita income and increases the number of dependants.
3. Unemployment and underemployment — large-scale joblessness, disguised and seasonal unemployment deprive people of regular income, pushing them into poverty.
4. Low productivity in agriculture and industry — outdated methods, small holdings and low capital keep output and incomes low, especially for farmers and workers.
5. Unequal distribution of income and wealth — income and assets (land, capital) are concentrated in a few hands, so the benefits of growth do not reach the poor. …