The Poverty Trap

The Poverty Trap is a cycle where individuals or communities remain poor because their current resources limit their ability to improve their situation. For example, limited income restricts access to education, healthcare, or investments, which are necessary for economic advancement. This lack of opportunity then prevents them from earning more, perpetuating poverty across generations. Once trapped, challenging economic growth or escaping poverty requires overcoming significant barriers that reinforce stagnation, making it difficult for affected populations to move upward without external assistance or systemic change.