I think I will say that you are correct here on  the inflation and salary issues. Inflation means higher cost of living and lesser value in purchasing power of the currency. Meaning that the currency can only purchase fewer of goods or services it was getting before. Therefore when salary is stagnant and inflation keep rising, it amounts to nothing and translated to increase in poverty rate so you are correct to submit that. Salaries need to be reviewed against the rate of inflation or inflation to be reduced fat better standard of living.