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In these situations I like to ask: what other countries have solved this problem, and how? Are there any? If not, why not? Is it solvable? I never assume that every problem has a solution, and I definitely never assume that every problem has a government solution.

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Countries with strong social democratic movements like Germany, Austria and some of the Scandinavian countries are able to provide a very decent quality of life with high education levels. However, they also have other variables like smaller population size (which makes it easier to reach a political consensus) and more ethnic homogeneity.

Didn't Germany just reach 12 millions of poor people ? http://www.euronews.com/2015/02/20/highest-number-of-germans...

A smaller population size doesn't make it easier to reach a political consensus. I am from Belgium and we hold a world record in that category: http://www.washingtonpost.com/blogs/answer-sheet/wp/2013/10/... 589 days at the time, I don't know if another country has done better since then.

What else could solve it other than a change of the regulations that led to the current situation? The only non government drivers of reduction of income I can see are war and financial crashes where the rich loose all of their money

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