In order to provide earnings supplements to the working poor government could:

Question

Quizplus · Accepted Answer

Providing a wage subsidy to the working poor would be the most effective way to provide earnings supplements. This would incentivize employers to hire more low-wage workers and increase the income of those already employed, without placing any additional burden on the government budget. Lifting restrictions on AFDC payments or extending Medicaid coverage would provide some additional support, but they would not directly increase the earnings of the working poor. Lowering the minimum wage would likely have negative consequences by reducing the income of low-wage workers even further.

In Order to Provide Earnings Supplements to the Working Poor