The resources of a country belong to all citizens of the country, but yet not everyone benefits from it, only the privileged few who has seized power benefits more. Which is why the majority of the population are poor. How about if the government makes it more easier for people to escape poverty on time, by making sure that every citizen gets a life start up funds (non refundable money) when they get to certain age.
(Amount will depends on the economic reality of your country)
In some countries, it is not like that, some countries have good governance and where their citizens benefit from the resources that is available for the country even though the people that have high influence and become the leaders benefit more thank the rest of the citizens, yet such countries is doing well for themselves and their economy do become active and no more problems do arrives as a result of poor governance and they have less numbers of poor citizens.
In most countries where the governments don’t do their best to share things equally, the economic situation of such countries becomes terrible because the number of poor citizens do always increase because the people with the privilege to get the money are selfish and don’t circulate it in the right way.
This funds is what individuals will use to start up life, invest in any business of your choices and grow from there. Won't this help the economy of the country to grow faster, and reduce extreme poverty from the masses? Won't this possibly create more jobs? Won't this be better for the economy than stockpiling money in federal reserves?
It will help the economy and it will also lead to a lot of progress in the economic system if it is been properly regulated; but if it is been circulated anyhow without regulations, and allow all the citizens to do as they want, they will cripple the economy of the country and it will affect the government and can lead to inflation.