Overpopulation: You get to cast the deciding vote.

[Aoi Magi]

I voted for option 1, cause that is the best way to have them suffer and in turn corrupt their souls.


Anyway:
1) People in general are stupid, and illiterate/home-schooled people tend to be stupider. Plus it is human nature to do exactly what they are told not to do, so the second solution would simply fail if people don't understand the cause and yet are forced to obey.

2) Why do you think the population growth is much higher in third world countries and among the poorer circles of society? The simple answer is, it is more profitable for them. For example, more children means more income from child welfare grants., in places where child-labor is a thing, more children means more earning opportunities for the family, and so on.

Thus the easy solution to the problem is to let people take care of there own mess. When the government stops helping people rely on their children, and when it is made clear that having a educated child is much more beneficial than a horde of uneducated brats, people will instinctively change their ways.