Essay Sample on Social Policy and Economic Policy

Introduction

The federal government has failed to eradicate poverty in the United States of America. President Lyndon Johnson had undertaken a course to reduce the poverty levels in the country but so far his work has not borne any fruits. The current poverty rate of the country is at 15.1 percent and it's on the upward trajectory. During President Lyndon Johnson time the rate was at 19 percent and on a downward trajectory. The government has used over twelve trillion dollars in their war against poverty and the state government has spent over three trillion dollars to fight poverty in their regions. All these monies have not altered the poverty levels at all, in fact, quite the opposite has happened, and the poverty levels now are the highest the country has ever seen. The only effect these monies have is the establishment of a category of privileged persons. It's very ironical that the war on poverty is a never-ending story (Joseph 210).

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When a new administration comes into power they promise the people that they will deliver on this issue, but it's all vain. A poll was taken back in the 80s on the public's feeling towards this subject and the recognition of non-success of the system which we have now is the same feelings they had back then. The only way we are going to tackle this matter is by having a healthy nation who are willing to work. The government should also ensure that they enact laws and policies which ensure that people get jobs and good medical coverage for this to be a success (Joseph 215). All barriers that are there that allow for people to be discriminated against should be abolished.

The federal government should not raise the minimum wage level. This is because this move will have numerous effects on various facets of the economy. It will hurt companies' specifically small and medium-sized companies because of the high wage bill which will have been established, decreased level of progression and decrease in employment opportunities. For example business enterprises with a fixed budget on salaries will definitely lay off some employees if the minimum wage bill is increased. In addition, the company may go slow on the hiring of new employees. Companies may also decide to invest more in technology rather than human employees if the wage bill is increased. This will result in machines taking over the jobs done by humans and people becoming redundant. The policies and laws in the country are responsible for the income inequality in the nation. Countries which have laws that ensure the wealthy are paying the highest taxes seems to have no equality problems.

Conclusion

The United States should change its tax policies. Countries like Switzerland put more burden on the rich than the poor. In the United States of America, the inverse happens. The president of America himself is the one advocating for tax breaks for the wealthy people. If the policies are changed and the attitude of the people towards the poor changes the inequality problems will be solved. It is not right that a rich person gets low taxes while the poor are toiling to meet their daily bread. The government should consider changing the tax regime of the country to ensure equality prevails. When equality is created, the matter of the minimum wage bill will ultimately take care of itself.

Work Cited

Joseph, Rigaud. "The War on Poverty Then and Now: A Plan toward Ultimate Victory". Poverty & Public Policy, vol 9, no. 2, 2017, pp. 209-223. Wiley, doi:10.1002/pop4.174.

Lemos, Sara. "Political Variables as Instruments for the Minimum Wage". Contributions in Economic Analysis & Policy, vol 4, no. 1, 2005. Walter De Gruyter Gmbh, doi:10.2202/1538-0645.1425.