President Obama mentioned poverty three times in his 2014 State of the Union Address.

“Americans overwhelmingly agree that no one who works full time should ever have to raise a family in poverty.”

The two largest retailers in the world are Costco and Wal-Mart. Costco employees make more than $20 per hour, while Wal-Mart employees make about $12 per hour. Many Wal-Mart employees still live below the poverty line. When customers come in and spend more than an employee might make in a week, it doesn’t create a good environment for employee morale or happiness.

“In the coming weeks, I will issue an Executive Order requiring federal contractors to pay their federally-funded employees a fair wage of at least $10.10 an hour – because if you cook our troops’ meals or wash their dishes, you shouldn’t have to live in poverty.”

Obama also mentioned the profitability of Costco’s operation and urges other corporations to follow Costco’s example. With a company turnover rate of five percent among employees who have been at Costco for more than a year, and less than one percent among executives, the company is surely doing something right.

Obama says that Congress needs to get on board in order to increase the minimum wage, which is worth about 20 percent less today than it was in the 1980s.

“Across Africa, we’re bringing together businesses and governments to double access to electricity and help end extreme poverty.” Obama’s Young African Leaders Initiative strives to engage the next generation of leaders and strengthen partnerships between the U.S. and Africa.

Through this program, the U.S. has invested significant resources to enhance leadership and entrepreneurship in Africa. It has also invested financial resources, through USAID, to strengthen access to education, workforce training and skills development for young Africans entering the labor force. USAID has invested more than $100 million to help train the new generation of African leaders.

– Haley Sklut

Sources: USA Today, Bloomberg Businessweek
Photo: Forbes