Government Intervention to Help the Working Poor There...

Small businesses are hurt by minimum wage hikes. This hypothetical situation describes how the minimum wage kills jobs. Consider a small community clothing store with 50 customers a day for 360 days at $20 spent per customer. Total revenue per year for the business is $360,000. This seems like a lot of money. How could a small hike in minimum wage hurt when the company makes this much money? Well we still need to deduct the costs of doing business. This clothing store has 10 employees all earning minimum wage (for this example is $8 per hour) working 2000 hours a year. This makes labor costs for this small business $160,000. Other expenses incurred by the business are: cost of goods that are sold, licenses, rent / mortgage,†¦show more content†¦Mendenhall states, â€Å"The current study contributes to this literature by using surveys and in-depth interviews over a 6-month period to trace planned and actual expenditure patterns and to explain the reasons for the obse rved patterns† (368). The Impact Of The Earned Income Tax Credit On Poverty: Analyzing The Dimensions By Race And Immigration, written by Olugbenga Ajilore, studies if the earned income tax credit can help immigrants and minorities overcome poverty. Ajilore studied the effects of the direct injection of money into the pocketbooks of poor immigrants and African-Americans. The goal was to discover if the earned income tax credit gave a need boost to people for upward movement to new income levels. One thing The United States government has tried to do is take care of the least among us. A couple examples of how the government attempts to do this are by tweaking tax code and implementing the minimum wage. My thesis in this essay is: If the government feels it must intervene in the market to help the working poor; then the earned income tax credit is a better, more targeted program that will produce better results. In order to support my thesis to the fullest, I will do fo ur steps. First, I will give a brief history of each program. Second, I will explain the benefits of each approach to helping the working poor. Third, I will explain the disadvantages of each program. Finally, I will conclude with how the data showsShow MoreRelatedMinimum Wage For The State Of California2115 Words   |  9 Pagesless than what is defined as minimum wage. Though every state has its own specific rate at which to pay its employees, some margins between states differ more than others. In the state of California the minimum wage is $10 per hour, for now that is. 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