Ways to Address the Income Gap and Reduce PovertyIncome inequality in America has increased remarkably for decades since the Gilded Age . The phenomenon is unfortunately widespread among the working classes, women and minorities. Income inequality creates caste and poverty, from the colonial period through the industrial revolution of the 19th century and into the globalized economy of the 21st century, and the process of widening income gaps has nevertheless become omnipresent. The question of what is an effective tool to combat the uncontrollable spiral of such a gap is a usual controversial question and has been debated endlessly. Some critics believe that the government should take control of tax policy to effect income redistribution, while others believe that comprehensive political reform aimed at revolutionizing the country's fundamental social system is the only solution. Nevertheless, a combination of government and social policies, with the collaboration of the private sector, constitutes an effective instrument contributing to the objective of reducing income inequalities and escaping poverty. Urbanization led to dramatic changes in American society during the period of the Industrial Revolution. at the beginning of the 19th century. This caused a migration from the countryside to the city center for families to earn inequitable wages for a relatively decent life. At the same time, increased immigration from European countries has created increased competition for jobs and downward pressure on wages. The Great Depression of the 1930s further caused unemployment rates in American cities to rise, peaking at around 25 percent in 1932. The number of poor people increased significantly, and many citizens became homeless and died. of hunger. As a result of this miserable period, France's promise of the New Deal...... middle of paper ...... the dollar per day increased by more than 13 percent in 2015. (World Bank, 2002 ). In fact, increasing globalization is giving rise to increasing integration between trade and finance, which are becoming more and more closely linked. Most financial systems in developing countries are immature and incomplete. Greater financial openness and greater government support means increased availability of financial assets used for direct investment. It mitigates productivity shocks and mitigates production volatility, enabling greater soft chain stability for the domestic market and further advancing trade potential. There is no single solution or approach to tackling income inequality and associated social problems. A combination of internal policies, collaboration with the private sector and use of global financial and trade markets would create an effective way to reduce income inequality..