Many years have passed ever since President Lyndon B. Johnson declared an unconditional war on poverty. President Obama declared a new war on income inequality. However, this focus is misguided in a way. There are still around 47 million individuals who are living in poverty. Therefore, the first war on poverty is not yet close to being over. The author states that earned income tax credit does a better job of lifting workers from poverty. For example, if the minimum price of labor is raised, the amount of labor that employers want to purchase, will decrease. Studies have shown that raising the federal minimum wage from $7.25 to $10.10 would cost thousands of jobs. However, this would help numerous workers get higher paychecks.
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