What Are Some Solutions for Reducing Poverty?

Some solutions for reducing poverty include job creation, raising the minimum wage, access to sanitation and clean water, and microfinancing. Job creation reduces poverty in a significant way because it gives people income, enabling them to take care of their needs. In most cases, labor is the only asset that can help poor people improve their lives. According to the United Nations, unemployment is one of the major causes of poverty.

Increasing the minimum wage can improve the well-being of millions of people. As of 2015, the United States has not raised the federal minimum wage since 2007. As a result, a full-time employee who earns the minimum wage and has two children may still raise the family in poverty.

Having clean water and sanitation reduces poverty because the time that would have gone to fetching water goes to working and producing agricultural products. An increase in agricultural products can reduce the cost of goods and services. Access to clean water also reduces health problems and health care costs.

Granting the poor access to loans can help them improve their lives. According to the Gates Foundation, only 10 percent of the world population has access to traditional financial services. Through microfinancing, low-income earners and the unemployed can get small loans to improve their lives.