Question

Income inequality & Poverty

How can government and businesses come together to solve the problems of income inequality and poverty?

Answer 1

The government and the business come together to solve the problems of income inequality and poverty to a great extent. In many instances, income inequality is a direct result of unequal opportunities for different people to earn income. The government first needs to create equal opportunities for all through legislation, building human capital through education, strengthening the judiciary, etc. When people have equal opportunities to build wealth, income inequality comes down to an extent. Also, the government can ensure basic education and skill development to eradicate poverty trap. The government can involve businesses in skill development of unskilled workers who are more prone to face poverty and income inequality. Also, the government can work with the businesses to solves problems like tax-evasion as higher government revenue helps the government create more opportunities for the poor. The government can also understand the supports which businesses require in order to create more sustainable value for the society.