Business Principles

The prosperity of Americans is not equally distributed among the population.

According to the Bureau of the Census, between 12 and 15 percent of the population in any given year live in poverty. This means that these people are poorly housed, clothed, and fed. Many live in inner-city slums or in rural areas. Statistics suggest that the richest 20 percent of American families have continued to earn more over the past 30 years, whereas the income of the lowest fifth has remained about the same. Thus, the gap between the rich and poor is widening.

Due to such programs as Social Security, poverty among elderly people is much lower today than previously. However, many children live in poverty because they reside in households where one or more parents do not have the education and skills to hold high-paying jobs. Many parents cannot participate fully in the labor
force because they don’t have access to good-quality, affordable child care. The strongest influence on increased income is increased education.

The government has several programs to reduce poverty. Minimum wage rates, unemployment benefits, financial or food aid, and subsidized medical care provide a basic safety net for the economically disadvantaged. Businesses increasingly offer training programs to provide skills that enable people to find and hold jobs.