Want to solve income inequality? Reform policies instead of raising taxes on the wealthy.
According to a new report from the Competitive Enterprise Institute (CEI), the most effective way to help the poor is for public officials to implement policy changes rather than increasing tax rates on the rich.
CEI report authors note that the living standards for impoverished Americans are far more important than the ratio between the top and bottom economic brackets.
So, what could be some of the policy changes needed to help the impecunious? Getting rid of regulations that prevent workers from practicing their occupation, have affordable energy and putting forward an honest price system. Officials should also reform the minimum wage.
“If Congress had increased the minimum wage to $10.10 per hour, employment would have dropped by roughly 500,000 workers in the second half of 2016, according to a 2014 Congressional Budget Office report,” the report states.
The study does note, however, that the living standards for today’s poor are much higher than they have been for past generations.
“In addition to better health, poor people today have more, better, and cheaper consumer goods than their parents or grandparents did,” the group said. “And while the price of formal schooling has gone up significantly, schooling and education are not the same thing, and today the latter is affordable to all.”
Study co-author and CEI fellow Ryan Young said in a statement that experts have incorrectly focused their resources on the income gap. What they should have been honing in on all along is helping the impoverished gain access to economic and employment opportunities, which help raise their living standards.
“The study does note, however, that the living standards for today’s poor are much higher than they have been for past generations.”
Lies, Damned Lies and Statistics.
With higher rents, utilities, food and transportation costs today, you will never convince me that things are better today.
When I graduated high school in 1974 I shared an apartment with 2 roommates in South Gate CA. $66 each, covered rent and utilities, 15% of my 440 per month income. Good quality used cars for $200 to $500. I was always able to pay cash for everything, no need for credit. Using an inflation calculator, my 1980, $6.34 per hour job would need to be $18.41, to have the same buying power in 2016. The highest paying job I can find today is $12 per hour, so do not try and tell me things are better today, math proves you wrong. Now I know why they call them the good old days.