Nearly 2 billion people – around 36% of the emerging and developing world’s population – live on less than the “moderate poverty threshold” of $3.90 a day. Currently though, many of the world’s poor have jobs: they’re just badly paid, in low-skilled occupations, and without basic social protections. In the U.S. the working poor must pay 15% of their wage to the government for future social security benefits.
According to the U.S. Census Bureau, poverty is mainly defined by one’s income before taxes excluding capital gains and losses. Poverty income rates can vary from state to state and factors like family size, and age group play a role as well.
In 2014, 46.7 million people in the United States lived in poverty. I suspect generational poverty to be the reasoning behind such a high number. People don’t just end up poor out of the blue. Often times, something goes wrong in their family’s economical system which gets passed down from generation to generation. Generational poverty refers to having lived in poverty for at least two generations.
The USA Plan allows for the working poor to invest in the same capital markets as the wealthy. With factors such as compound interest, asset appreciation and dividend reinvestment, a working poor’s savings, over a 40-year period, can create a retirement nest egg of over a million dollars. Because this nest egg can be past on to their heirs, this system will break the cycle of generational poverty, bad education and unaffordable health care.
Economic growth comes from entrepreneurs risking their own money, not from politicians risking your money.