He knows but He doesn't cause anyone to act immorally. That is a right you reserve, and even God doesn't intervene.
When a child is hungry as you say, it is our responsibility to do everything possible to feed them, THAT IS THE PURPOSE OF OUR CREATION.
Tell this to yourself, If God was to set everything aright Himself, then I'm absolutely in agreement with you, there is no need for creating man. He created us, to do good and make this world heaven, and earn heaven in return in the afterlife. If we make it shit, then expect shit in the afterlife.