The only real solution I can see is finding a way to drive wage inflation faster than price elasticity. Government programs like the WPA, rural electrification, and building freeways paid well, and forced the private sector to adjust their wages to compete. The New Deal introduced all kinds of social welfare programs like poverty relief and THE MINIMUM FUCKING WAGE. Unions also had a huge impact on wages and living conditions for workers across the board, even those in non-union shops. Think overtime laws and forty hour weeks.
A real minimum wage increase would really be the first solution I would present, because it is the most rapidly dispensed form of compensation. Several years ago we saw an increase in minimum wage from 5.25 an hour to 7.15 or some such. Organized labor did a bang up job lobbying for that one. But it's not enough. The British non-profit newspaper "The Guardian" had an article explaining that if minimum wage had increased at the same rate as business profits, it would be more than $15 an hour. That essentially doubles the wages of workers across the board, and it even means better wages for skilled workers and middle management.
This probably exposes American capitalism's greatest defect: regulatory constructs must constantly be erected to buttress the inequalities it gravitates towards. Honestly, that's why I started so hostile with >>2. The Internet is crawling with RON PAUL libertarians and mises styled anarcho-capitalists who want everyone to believe that if we leave the capitalist class to their own devices, it will benefit everyone including them. When I saw you suggesting that we essentially terminate a necessary public welfare program, I assumed the worst and responded as such. Sorry about that.