Government policies are very important for how money is shared in society and how we fight poverty. Here are some easy-to-understand ways they do this:

1. Taxation: When people earn more money, they pay a higher percentage in taxes. This way, wealth is shared more fairly, and the government can use that money for social programs that help everyone.

2. Welfare Programs: Programs like unemployment benefits and housing help people who are struggling. These programs give direct aid to those who need it, making it easier for them to get by.

3. Minimum Wage Laws: By setting a minimum wage, the government ensures that people earn enough to meet their basic needs. This helps low-income workers live better lives.

4. Education and Training: When the government spends money on education, it helps people learn new skills. This can lead to better jobs that pay more money, which helps to reduce the gap between rich and poor over time.

In short, good government policies can help balance out different income levels and improve the well-being of everyone in the economy.