Question

In: Economics

Welfare Reform - what are your thoughts about what is proposed below 2? Today employment in...

Welfare Reform - what are your thoughts about what is proposed below 2?

  1. Today employment in American Manufacturing is more likely to look like the rest of America but American manufacturing is going the way of American farming, Lots of output, lots of machines but fewer and fewer workers.
  1. These displaced workers now join the communication and clerical workers and soon perhaps retail, warehouse, and transportation workers.
  1. There will always be work in the future but the jobs will need more and more skills.
  1. We will need higher-skilled workers and this means better schools. But better schools may not be able to overcome bad parenting.
  1. We should organize a system that would subsidies low-income workers more vigorously than the Earn Income Tax Credit currently does. I feel strongly that people who work should not be poor and yet roughly half to the persons held in poverty are working. They just don’t make enough. People who work should have lives of comfort and optimize and the means of investing in their lives for the future.

Solutions

Expert Solution

As the American economy is becoming capital intensive economy, many people are not able to get required jobs. In order to avail for basic standard of living, these workers are taking low profile jobs. There are many job opportunities in future as well but these workers would not be able to get in those due to lack in their skills. The workers will not able to provide better schools for their kids due to less income. Their kids would also lack skill development due to poor schooling and would not be able to get into high profile jobs.

I strongly agree to the point that a system must be organized where the low earning workers are subsidized more vigorously. This would not only enhance their basic standard of living but also help them to come out of the vicious cycle of poverty. With the subsidised amount, they would be able to provide their children good education in good schools. These children would gain required skills and would be able to get into high profile jobs. Their livelihood and way of living would improve with the help of subsidised amount by the government. Poverty will be eradicated to an extent.


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