In previous years, the rise in poverty was predominantly the result of the fact that the poor's income grew at a slower pace than the income of the affluent.2004 saw an unprecedented process whereby the social and economic gaps widened: The income of the rich increased, while the income of the poor dropped.
The long-term solution to poverty is economic growth, but only if the poor enjoy its fruits just as much as the rich. But in 2004, the government's policy caused exactly the opposite: It hurt the poor and benefited the rich. This took place mainly because the government removed the poor's social security net and left them to drown in distress...
When the U.S. government seeks to cut 2 percent in social security benefits, the cut is scheduled to be implemented in 10 years time and is being argued over for the past three years. In Israel, hasty government decisions cut social pensions by 15 percent...
In 2004, it was the working families that suffered most from poverty. While the cruel pension cuts had in fact sent citizens to work, the salaries they earned did not permit them to support themselves or their families in honor, and soon enough, pushed them into poverty as well.
