Who will pay the US debt?
The proponents of the work-for-welfare scheme argue that this will help the poor by weaning them off the system and thereby making them more self-reliant. But assuming that it was possible for all these people to find full-time work, they still would be living in poverty, since the actual value (purchasing power) of the minimum wage is at its lowest level since 1955. Two working adults, let alone a single parent, can not afford to pay for housing, child care, health care and transportation with working for minimum wage.
According to Economic Policy Institute "today, the minimum wage is 31% of the average hourly wage of American workers, the lowest level since the end of World War II". It is clear that the poor will have severe problems in alleviating their economic condition by simply working for minimum wage. If they work hard they may be able to join the working poor.
The government can only reduce services to the poor. It can not raise any money in from of taxes from this group.
To be continued
Dr. Abbas Bakhtiar
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