A poverty trap is a cycle that keeps people in poverty, even when they try to lift themselves out. This is a problem in developing countries, where aid organizations are working to improve conditions. Means-testing and high marginal tax rates can contribute to poverty traps, as can environmental problems and political instability. Adjusting means testing […]
The Malthusian trap theory suggests that technological advancements would lead to population increases that would strain resources, but the Industrial Revolution proved this wrong by decreasing costs and improving living standards. However, some historical societies fell into a Malthusian trap due to limited resources and growing populations. The Industrial Revolution brought social benefits, but some […]
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