Final answer:
Poverty is influenced by lack of human and physical capital, and is further exacerbated by intergenerational transmission. Wealth concentration among the top 1% highlights systemic economic inequality. Addressing poverty involves improving capital resources and addressing disparities through policies and social programs.
Step-by-step explanation:
One cause of poverty as argued by the Berg-Weger text refers to the ownership of human and physical capital. Human capital encompasses the skills and knowledge a person possesses, which impact their ability to work and earn a living. Whereas, physical capital, or wealth, includes the tangible assets that can help generate income or provide a financial safety net. A lack of these capitals can result in long-term poverty since they are critical for the financial stability and development of individuals and families. Intergenerational poverty also plays a significant role, where poverty is transmitted from one generation to the next, perpetuating the cycle of poverty and limiting the opportunities for wealth accumulation and economic growth.
Furthermore, in addressing the economic inequality, we see the vast concentration of wealth among the top 1% of societies such as the United States. Questions arise as to how a small minority accumulates extreme wealth, which is an essential aspect of understanding poverty and economic disparities. Ultimately, combatting poverty not only involves addressing immediate shortages in current resources but also necessitates improvements in human and physical capital for a sustainable long-term solution. Economic policies and social programs are often designed with these issues in mind, aiming to break cycles of poverty and redistribute resources in a way that provides more equal opportunities.