Why do we have poverty and what is the best policy in eliminating it?

Great question! I’d start with this section in Principles of Macro:
Then if you want to go deeper, I’d suggest diving into development economics. We have a our course here:
https://mru.org/courses/development-economics
There are also a lot of good books on the subject. You’ll see some of the featured at the beginning of the puzzle of growth video in Macro.
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Becky Rice commented
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Poverty exists due to a combination of factors such as inequality, lack of access to education, unemployment, and poor economic policies. It is also driven by systemic issues like discrimination, inadequate healthcare, and limited access to resources. To eliminate poverty, the best policy is a comprehensive approach that includes improving education, creating jobs, ensuring access to healthcare, and providing social safety nets like social grants. Sustainable economic growth, fair wages, and targeted support for vulnerable groups are key to breaking the cycle of poverty and improving quality of life for all.
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