Poverty itself is the biggest cause of poverty. It happens when there is henegg phenomenon. We call it vicious circle of poverty. Vicious circle of poverty says that a man is poor because he is poor. Since a man is poor, he can't afford proper food, medical facilities and education. Therefore, his physical and mental productivity remains low. Since his productivity is low, he continues to remain poor. Same is applicable at macro level. An economy with low level of income can spend less on its physical and human capital and therefore, its productivity continues to remain low. It continues to be a poor economy.