7 Things I'd Do if I Wanted to Keep Poor People Poor

Commentary from Brian Balfour on FEE.org:

If I wanted to keep poor people poor, there are several government policies I would favor. Let's count them down.

1: An Expanding Welfare State

For starters, I would advocate for a robust and ever-expanding welfare state—programs like Medicaid, food stamps, unemployment insurance, etc.

I would recognize that an effective recipe for keeping poor people poor is to create incentives that push them into decisions that prevent them from climbing out of poverty.

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2: Progressive Taxation Policy

If I wanted to keep poor people poor, I also would finance the welfare state poverty trap through punitive taxes on the job and wealth creators of society.

The key ingredient to economic growth, and thus a higher standard of living for society’s poor, is through productivity gains made possible by capital investment. High marginal taxes on profitable companies and small businesses alike discourage capital investment. As businesses decide to either not expand or take their businesses to more investment-friendly countries, job opportunities dry up.

3: Increase the Minimum Wage

If I wanted to keep poor people poor, I would advocate for higher government-enforced minimum wages. The law of supply and demand tells us that the higher the price of a good or service, the less of it will be demanded (other things held equal, of course). The demand for low-skilled labor is no exception. Minimum wage laws are an effective tool to cut off the bottom rung of the career ladder. [read more]

The Left likes all the policies above and the other four which are:

1. Support Restrictive “Green Energy” Policies
2. Increase the Business Regulatory Burden
3. Inflate the Money Supply
4. Impose High Tariffs