Final answer:
The government regulates a number of areas to reduce poverty and help workers' earnings meet the cost of living, with setting minimum hourly wages as a key measure.
Step-by-step explanation:
The U.S. government has implemented various regulations to reduce poverty and align workers' earnings with the cost of living. Specifically, the government has sought to empower workers and achieve a more equitable balance of power between employees and employers through measures such as setting minimum hourly wages, which directly affects workers' income levels and their ability to afford basic needs.
To further address income inequality and support those in lower-income brackets, several government policies provide assistance, including the welfare program TANF, the earned income tax credit, SNAP, and Medicaid. Adjustments to these programs, whether through changes to benefits reduction rates or increased funding, can further work to mitigate the poverty trap and provide financial security for individuals and families.