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I know it sounds old fashioned, but IMO the biggest problem - the thing that needs to be "fixed" the most - is the breakdown of the family unit.
Too many divorces, kids born out of wedlock, etc., i.e., "broken homes." That's how poverty cycles are made.
How to fix it? I have no clue. We are living in a culture that does nothing to dissuade broken homes, and in fact one could argue that we socially, economically and politically encourage it in many ways. It may be unfixable.
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