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Poverty reduction

Various poverty reduction strategies are broadly categorized based on whether they make more of the basic human needs available or whether they increase the disposable income needed to purchase those needs. Some strategies such as building roads can both bring access to various basic needs, such as fertilizer or healthcare from urban areas, as well as increase incomes, by bringing better access to urban markets.

Reducing relative poverty would also involve reducing inequality. Oxfam, among others, has called for an international movement to end extreme wealth concentration arguing that the concentration of resources in the hands of the top 1% depresses economic activity and makes life harder for everyone else—particularly those at the bottom of the economic ladder. And they say that the gains of the world's billionaires in 2017, which amounted to $762 billion, were enough to end extreme global poverty seven times over. Methods to reduce inequality and relative poverty include progressive taxation, which involves increasing tax rates on high-income earners, wealth taxes, which involve taxing a portion of an individual's net worth above a certain threshold, reducing payroll taxes, which are taxes on employees and employers and reducing this provides workers greater take-home pay and allows employers to spend more on wages and salaries, and increasing the labor share, which is the proportion of business income paid as wages and salaries instead of allocated to shareholders as profit.