Question

How can creation of income earning assets address the problem of poverty?

Answer 1

The income earning assets are those assets the ownership of which are controlled and owned by the members of a household. These are land, capital, labour and different levels of skills. Poverty and inequality of income arises due to improper distribution of and access to such income-earning assets. The labour skills of the poverty-trodden population are usually traditional and poor in quality that consequently leads to poor income and employment opportunities. Moreover, a substantial proportion of population is engaged in the small scale production that often lacks capital and modern technology. Consequently, such techniques directly hamper the income earning capabilities of small scale industries. In addition to this, poor people often lack access to social services like proper medical and health care facilities, better education, proper sanitation, etc. The lack of access to such social services affects health, productivity and finally income earning capabilities of the poor. 

In order to alleviate the problem of poverty, the role of income earning assets cannot be substituted. There are various measures that can create income earning assets for the poor people like providing proper access to easy credit, capital, monetary assistance, imparting technical skills, allotment of land to the landless and marginal farmers and better access to education, health services along with better access to information and support services for increasing their productivity. All these measures directly or indirectly contribute positively to the quality of human capital and their endowment of income-earning assets. This in turn leads to increase in the income opportunities and earning capabilities, thereby, contributing to the alleviation of poverty

Answer 2

Answer:

By The generation of the income earning asset we can easily eradicate the poverty levels form the country as the poor can be helped by this scheme and thus improvement in the standards of living.

Explanation:

• The creation of the income assets is a move that the government should take for the sake of the poor of the country to alleviate their problems and thus help them with the resources of the nation to bring a balance in the haves and the have nots.

• The assets can in the form of the stocks, bonds and the sales of the sectors and thus can help in some ways to address the poverty the people.  

• GIving the tax rebates to the poor farmers and helping them at the financial crisis is the most important fact that income-earning assets can provide.