Universal Minimum Wage

Topics: Unemployment, Minimum wage, Basic income, Welfare, Poverty, Socioeconomics / Pages: 5 (1171 words) / Published: May 2nd, 2017
As stated before solving the problem of poverty may seem like a lofty goal, but different but different states within the United States have been able to enact certain polices which have dramatically reduced their levels of poverty and improved the quality of living for its citizens. According to the Economic Institute Policy’s policy Analyst Liana Fox, the current system of not adjusting the federal minimum wage yearly, causes the value of the minimum wage to decrease as inflation causes the cost of living to increase. This lack of action causes either one of two scenarios, either the states pick up the tab and enact minimum wage indexing or states do noting and the countries lowest paid workers are left with no way to deal the yearly rise …show more content…
In the United States, the state Alaska’s version of a basic income is called Permanent Fund Dividend and in the three and a half decades that have passed since its implementation, it has been a huge success. The Alaska Dividend works by dividing up the profit from the states oil industry, and distributing it to every citizen of the state (About BIG). While the amount of money paid to each citizen differs each year depending on the amount of profit made from the oil industry that year. While the amount of money paid to each citizen is not enough to support one’s self or family, it has been noted that the Dividend has been helpful to those living at or near the poverty line in the state with buying …show more content…
As stated previously, the current value of the federal minimum wage decreases yearly as the values of the American dollar decreases and the minimum wage stays the same. Currently only about seventeen states have created indexing laws to retain the value of the minimum wage (Fox). Rather than occasionally raising the minimum wage, as has been done in the past, the federal government must amend the minimum wage legislature to account for indexing. As most of the people living at or around the federal poverty threshold work in low-skill and low-paying jobs, the current system qualifying for welfare programs through job training, and career counseling should only be optional. A guaranteed basic income of 10,000 dollars annually to every qualifying adult resident, would help to subsidize the cost of living for these low-wage earners. Those who qualify for the basic income would have to be legal residents and not currently incarcerated. The majority of existing social welfare program would still exist as a safety net for those in

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