http://nation.time.com/2013/09/17/analysts-2012-poverty-rate-basically-unchanged/
In 2012, 15% of Americans were living in poverty. In 2011, about one in every seven Americans were living in poverty (Statistically speaking, this is essentially equivalent to the 15% in 2012). Overall, for the last six years, the poverty rate has not improved. A large reason for the constant poverty rate is the unemployment issue the United States has been facing. The unemployment rate directly correlates with the poverty rate.
Also in 2012, Greece was suffering from an economic crisis. The percentage of people living in Greece who were near or under the poverty line was roughly 31% (http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_03/12/2012_472690). In addition to their unemployment rate at the time, which was 26.4% (http://www.foxbusiness.com/economy/2013/04/18/countries-with-highest-unemployment/), it is clear that unemployment strongly influences the poverty levels of countries. As this fact becomes more evident, we must ask ourselves if the real remedy for the number of people living in poverty is more aid through government systems (welfare, healthcare, etc.) or perhaps an easier and more cost effective solution, the creation of more jobs.
Although there are many implicit costs that would come along with creating more jobs for people, I still believe it could be, if done the correct way, more cost effective than throwing billions of dollars into government assistance programs. I also feel this way because I believe that every American capable of earning money should be doing so, rather than collecting benefits from the government without necessarily having to work. If more jobs are created and less money is budgeted for the assistance programs, people will have more of an incentive to get a job.
I agree with you Linds. Instead of using so much money in government assistance programs, more jobs should be created. There is no incentive to get a job so people would rather do nothing and collect money from the government.
ReplyDeleteOK but both of you are speaking as if the government is the creator of jobs. As I said in another blog comment, the government is responsible for creating the climate, not the jobs. Personally, I don't want the government to create ANY more jobs... The amount that government has expanded in recent years is ridiculous. Instead, I want the government to pursue pro-business policies which drive the forces of innovation which inspire entrepreneurship and thus hiring.
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