2 of 10

Situation Analysis

90%

Poor Countries

10%

Rich Countries

Economic instability and inequality throughout the world
Develop a global strategy to conquer the problem of poverty and promote economic growth
Low minimum wages, taxes on the poor, and expensive education and healthcare play big roles in influencing the continuous problem

3 of 10

Program Objectives & Goals Overview

(3) ASSET BUILDING

Policy Change

Contributes to better household economic stability

Programs

Retirement Plan
“Generational Wealth”

RAISING MARGINAL TAX RATE

Wealth Redistribution

Tax Top 1% More

Make Tax Code More Progressive

Current bad tax policies

(2) OPEN TRADE POLICY

Negotiating Trade Agreements

Often not open to the public

(NINA)

Raising Marginal Tax Rate

It is a great irony that tax rates for those at the top have been declining even as their share of income and wealth has increased dramatically. Countries have created bad tax policy by giving capital gains -- profits from the sale of property or investments -- special privileges in the country's tax code; privileges that give investment income more value than actual work. Capital gains tax rates must be adjusted so that they are in line with income tax rates. Savings incentives structured as refundable tax credits, which treat every dollar saved equally, can provide equal benefits for lower-income families.

Open Trade Policy

Negotiating international trade agreements behind closed doors with only bureaucrats and corporate lobbyists present has to end. These old-style trade agreements put corporate profits above workers, the environment, health, and the public interest. We need a new, transparent trade policy that is open, transparent, and accountable to the people.

Asset Building

Policies that encourage higher savings rates and lower the cost of building assets for working and middle class households can provide better economic security for struggling families. New programs that automatically enroll workers in retirement plans and provide a savings credit or a federal match for retirement savings accounts could help lower-income households build wealth. Access to fair, low-cost financial services and home ownership are also important pathways to wealth.

Contributes towards lower-income families/households building wealth

“Generational Wealth”

Lower income families are often never given the opportunity to accumulate monetary affluence to be then transferred to assets, then inherited by children/family

4 of 10

Program Objectives & Goals Overview

(6) STOP ILLICIT

OUTFLOW(S)

Stop Illicit Outflows

Resourcing for…

Health
Education
Investment

Cash Outflows

Poverty
Economic growth
Infrastructure

(4) RAISE MINIMUM WAGE

Improve Living Standards

Change avg. Minimum Wage
Lift Federal Minimum Wage

(5) EDUCATION ACCESSIBILITY

Make Education More Accessible

Economic Mobility
Productivity
Inequality

(NINA)

(4) Raise Minimum Wage

Research shows that higher wages for the lowest-paid workers has the potential to help nearly 4.6 million people out of poverty and add approximately $2 billion to the nation's overall real income. Additionally, increasing the minimum wage does not hurt employment nor does it retard economic growth.

(5)Make Education More Accessible

Differences in early education and school quality are the most important components contributing to persistent inequality across generations. Investments in education, beginning in early childhood with programs like Head Start and Universal Pre-K, can increase economic mobility, contribute to increased productivity and decrease inequality.

(6) Stop Illicit Outflows

In developing countries, inadequate resourcing for health, education, sanitation, and investment in the poorest citizens drives extreme inequality. One reason is tax avoidance and other illicit outflows of cash. According to Global Financial Integrity, developing countries lost $6.6 trillion in illicit financial flows from 2003 through 2012, with illicit outflows increasing at an average rate of 9.4 percent per year. That’s $6.6 trillion that could reduce poverty and inequality through investments in human capital, infrastructure, and economic growth.

5 of 10

Program Objectives & Goals Overview

(9) INCREASE HDI GLOBALLY

Reliance on tourism for economic growth in many countries (ex. Mexico, Estonia)
Tourism also alleviates poverty

Favors local and national economy
Creates jobs for locals
Help from government and foreign visitors is key

(7) PERMANENT & STABLE JOBS

Instead of relying on temporary and contingent labor, companies should provide permanent and stable jobs for the population

People are being denied the status of employment
Workers would fill a labor need that is permanent

(8) INVESTMENT IN TOURISM

By providing adequate access to health and infrastructure
Improving decent water quality
Improving settlement management

6 of 10

Recommendations

Raising Marginal Tax Rate: Make a federal law that forces the top 1% richest in each country to pay taxes

This money will be redistributed to the impoverished people

Open Trade Policy: Make Trade Policies transparent

This will allow for decisions made to be held accountable by general public

Asset Building: Initiate a policy to encourage higher savings rates and lower cost for building financial assets; enroll workers in retirement programs automatically and provide savings credit

Contributes to lower-income families/households building wealth

Raising Minimum Wage: Make a federal law to ensure that the minimum wage is raised in each country

Want to make minimum wage $15 everywhere in the world

Education Accessibility: Implement Programs increasing economic mobility

Contribute to increased productivity + decreased inequality

Stop Illicit Outflow(s): Cease tax avoidance, & illicit outflows of cash by govt.
Permanent & Stable Jobs: Companies provide job safety

Not reliant on contingent labor

Investment in Tourism: Implement more touristic opportunities

Subsequent alleviation of poverty

Increase HDI Globally: Govt. focus on improving HDI

Access to health, good infrastructure, water quality, etc.

7 of 10

Program Performance Measurement

To measure the success rate of our programs, we will measure the percent of impoverished people in the world
We will determine if someone is impoverished based on the country they live in

* DISCLAIMER: This is solely an example and not any real data

8 of 10

Implications

Estimation of Costs: These programs will cost hundreds of billions of dollars to initiate around the world
Benefits:

Political: These measures will be a beneficial factor for the further cooperation between countries

A closer step to achieving united humanity

Financial: Poorer people will grow richer and the rich will probably stay rich, so it is a win-win

Corruption and crimes on the government level will be decreased

Welfare: With more finance, welfare will become less of a problem

Beneficial to all people globally
The global inequality will be reduced if these policies are implicated

9 of 10

Conclusion

Our proposed solutions would help with an increase in global economic growth, and prosperity, as well as reduce the poverty of the whole population
Much of our ideas currently remain hypothetical, and at the moment do not provide certainty regarding the success of their performance

Our proposed solutions have ensuing procedural plans which DO address the existing global issues in both performance, and how they are to be achieved

For example, investment in tourism has already been done in many countries

Ex. Mexico: There, it has been proven that tourism aids in economic growth, as well as in the alleviation of poverty

1 of 10

2 of 10

3 of 10

4 of 10

5 of 10

6 of 10

7 of 10

8 of 10

9 of 10

10 of 10