There is a powerful business case to be made for increasing the economic status of the lowest paid U.S. workers. Lower levels of inequality are correlated with higher overall economic growth that benefits every member of society, including shareholders. It has also been shown that companies with the best employee practices create sustained long-term value for their shareholders. But the private sector cannot act alone in creating a more inclusive form of capitalism. It needs strong incentives from the government. Among the potential policy ideas that could move the needle: expand employee ownership programs; raise the income level where federal tax is due; and make the minimum wage a living wage.
President Donald Trump is beginning a second term in the White House propelled, in part, by the support of blue-collar voters, many of whom appear to have abandoned the Democratic Party. In fact, more than half of all low-income Americans without a college degree voted for Trump.
