5 Alternative Ways to Fight Poverty More Efficiently Than Minimal Wages
As an economics student, I have learnt that raising the minimum wage can be a way to fight poverty.
As an economics student, I have learnt that raising the minimum wage can be a way to fight poverty. However, this does not always work out because of several downsides. When writing a minimum wage essay for school assignments, you should always focus on the positive as well as the negative implications of this policy.
Before you can adopt or dismiss raising the minimum wage policy tool, you need first to understand how it works. Read free materials available online, ranging from books to essay examples and articles that can help you answer the question, “should minimum wage be raised?” This helps you get your facts right before airing your opinion
5 Alternative Ways to Fight Poverty More Efficiently
Increasing minimal wages has not been a very effective tool when it comes to fighting poverty. Although some minimum wage argument essay papers will indicate the opposite, this policy has had some negative impacts on the economy. It doesn’t always work is because it increases the cost of running business for employers, which is disadvantageous to small businesses.
However, there are other alternative ways to fight poverty that are more effective than increasing wages. Read on.
1. Introduction of tax credits
Instead of increasing the minimum wage, the state should focus on reducing tax obligations among the low-income earners by introducing favorable tax credits. Unlike tax deductions and exemptions that reduce the taxable income, tax credits reduce the amount owed by an individual to the state.
This lightens the tax burden among low-income earners by reducing the amount owed to the state. The most common tax credits in America are the Earned Income Tax credit and the Child Tax Credit. They can work towards alleviating poverty levels among low-income earners.
2. Affordable Medicare for all
Healthcare is one of the most crucial basic needs in every country. To avert poverty, the state should adopt an affordable healthcare system that does not bankrupt people in case of health complications. Many people in America have gone broke, trying to treat terminal illnesses. It is something directly attributed to the expensive healthcare system.
Establishing an affordable healthcare insurance system that is controlled by the state can help poor people afford the care they need. In turn, it will reduce the amount used in healthcare by any person in America. I came across a raising minimum wage essay that indicated that this policy would lead to the creation of jobs and a healthier, happier nation.
3. Creation of more jobs
Instead of pushing for higher earnings, the state should focus on creating more jobs. When you are doing your research for a minimum wage argument essay, you will realize that higher wages only benefit a small percentage of people. On the other hand, creating more jobs helps raise the income of the entire household.
When everyone in the house is in the working class, it means that there is enough money for all. Poverty cases reduce more effectively than increasing minimum wages. Creation of more jobs gives more people the chance to earn a living.
4. Adopt equity pay among workers
Some levels of discrimination exist between the wages paid to men and women doing the same work. In some cases, men earn a relatively higher income than women for the same amount of work done. This disparity in income also fuels poverty in a society.
Adopting an equity policy in payouts that balances all the salaries and wages among workers regardless of their gender can be an effective policy tool to help fight poverty. It ensures that every worker gets enough money to support their family and meet basic needs. It is important to close the gender wage gap if we are to win this war against poverty.
5. Focus on criminal justice system reforms
America has one of the toughest criminal justice systems in the world. The USA incarcerates people the most in the world. This has a hand in promoting poverty in society, especially among people of color, thanks to the tough consequences that come with having a criminal record.
Therefore, the state must make necessary reforms on the criminal justice system to reduce mass incarceration and introduce ways to reintegrate the incarcerated people back into society. It will go a long way in reducing poverty levels locally than an increase in minimal wages would.
In a Nutshell…
Although raising the minimum wage sounds like an excellent way to help low and medium-income workers, it is not the most effective policy in fighting poverty. There are several negative implications of this policy that you can highlight in your minimum wage essay assignment. It can still be adopted but is not the ultimate solution. Other alternatives work.