The number of people living in poverty is increasing in the world. Furthermore, low and middle-income workers have not experienced income growth over the past ten years, as the benefits from economic growth have gone mainly to the richest people.
With inequality and flat incomes stuck at high levels, we might assume that economic insecurity is normal and nothing can be done to correct it. However, nothing is inevitable about stagnant incomes and elevated poverty. They are direct consequences of poor policies choices that put wealth into the hands of few people. Here are five steps that governments should take to cut poverty, expand the middle class, and boost the economic security.
The best way out of poverty is a good job. To kick-start job growth, the governments should invest more in job-creation strategies such as developing renewable sources of energy, building and rebuilding infrastructure, renovating abandoned housing and make other investments that create jobs and boost economy.
Raise the minimum wage
In the 1960s, a worker earning the minimum wage could lift about three families out of poverty in America. There is a lot of evidence that increasing minimum wage can boost the economy and reduces poverty.
. Support pay equity
There is a lot of salary disparity in many countries. Some people are peanut earners while other are super-earners. Salary disparity continuously widens the gap between the poor and the rich. Men and women should also receive equal pay for equal work. Closing the gender wage gap can significantly reduce poverty levels.