Poverty Reduction Strategies

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Poverty in the United States has been a subject of much concern for many years. In fact, President Lyndon Johnson proclaimed in his January 1964 State of the Union address, “This administration today, here and now, declares unconditional war on poverty in America.” It has been 51 years since this “War on Poverty” has been proclaimed, yet, poverty has not yet been conquered. Poverty is an ongoing problem that does not have a simple solution. Many economists have different perspectives on how to tackle this issue. Popular poverty reduction strategies include living wage, minimum wage increases, Supplemental Nutritional Assistance Program (SNAP), and Earned Income Tax Credit (EITC). Increase in minimum wage to meet living wage is one strategy …show more content…

The minimum wage in New Jersey is currently $8.38 which equals out to be less then $20,000 annaually. Supporters of raising the mininum wage argue that minimum wage is not enough for faimlies to live on and minimum paid workers often struggle to make ends meet. Some argue that raising minimum wage is not as sufficient as establishing a living wage because different regions have different costs of living. A living wage is an hourly wage rate considered the minimum level to provide the basic essentials of modern living. One aspect of this is that income should be sufficient enough in which housing should be no more than 30% of a familiy's budget. (Investopedia Dictionary). The intent of raising minimum wage is to provide low wage workers with higher income so they may be better able to meet their basic needs. Opposers of raising the minimum wage state that raising minimum wage could potentially cause an increase in unemployment as employers would seek means to offset the cost of higher wages by eliminating positions. An article in the Spotlight on Poverty, “EITC vs. Minimum Wage: Where Should Advocates Place Their Bets?” by Michael Saltsman asserts that an “unintended …show more content…

SNAP is a widely popular anti-hunger program which helped more than 47 million low-income Americans to afford a nutritionally adequate diet in a typical month (Center on Budget and Policy Priorities: Policy Bassics, Introduction to SNAP). SNAP is beneficial in providing assistance with the cost of food to families. Furthermore, it aims to assist with providing families with better nutrition and the option to purchase more nutritional food as they will have more money to spend on food. ( Policy Basics; Introduction to SNAP). Families with the largest need receive the largest amount of benefits; therefore, as a family's income increases, assistance decreases. According to Tiehen & Ver Ploeg, “SNAP was particularly successful in lessening poverty among children--a group with significantly higher rates of poverty than the overall population.” Furthermore, SNAP, unlike many other programs designed to assist the impoverished provides assistance to individuals who have a disability and are unable to work or unemployed and have exhausted their unemployment benefits. Opposers of the SNAP program feel that this is program that provides able-bodied people with assistance rather then promoting that they work; however, the SNAP program supporters state that SNAP provides incentive for particpants to obtain better paying jobs or more hours by only reducing benefits by 24 to 36 cents to

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