Mark Robert Rank's, "Why American Poverty Affects Us All" Chapter 8, Future Directions

       One of Rank's strategies to ending poverty pertains to creating adequately paying jobs because he believes this inefficiency is one of the main reasons for the existence of poverty in America today. Rank states, “up to one third of the household heads in the labor market cannot raise their families out of poverty or near poverty through their job earnings (Why American Poverty Affects Us All, pg. 195). He feels we will break free from the cycle of poverty through raising the minimum wage and with earned income tax credit, while guaranteeing there is an adequate amount of jobs available for those that need it the most. Earned income tax credits to low-income workers is extremely beneficially to families with children. Rank feels that for this to become more efficient, “its benefits should be expanded so that they provide greater assistance to low-income workers without children (Why American Poverty Affects Us All, pg. 201). The absence of appreciating hardworking individuals plays a major role in inadequate earnings and until we find value in our workforce, we may never escape the cycle of poverty.

       I believe that Rank’s strategy in creating adequately paying jobs to eliminate poverty would work because, although raising the minimum wage comes with many misconceptions and concerns, such as, causing employers to hire less workers and its ineffectiveness due to the assumption that those working for minimum wage are minors, making little to no impact on low-income families, Rank states “the positive impact of tying the minimum wage to the poverty level for a family of three and then indexing it to the rate of inflation would be substantial” (Why American Poverty Affects Us All, pg. 198). Raising the minimum wage would create a sensible established income for a full-time employee and make it capable for a worker to support a family of three above the poverty line. It will also reinforce the value of labor, eliminate political arguing from minimum wage dispute, and publicize the growing wage imbalances among CEO’s and their average salaried labor force.  Secondly, I agree that Rank’s strategy of an establishing earned tax credit income will work because it will provide economic assistance to the low-income workforce and offer a strong work incentive. According to Rank, “EITC has helped to reduce the distance between their household income and the poverty line…appeals to both liberals and conservatives” (Why American Poverty Affects Us All, pg. 198). The combination of the EITC and the raising of the minimum wage, along with creating enough jobs to assist those in need, will significantly help underprivileged individuals escape the life of poverty.