Serious Thinkers™ in all corners of the web return to some common themes, even when those themes are currently out of the public spotlight. Recently, those Serious Thinkers™ have been reading between the lines on topics which the public has moved on from – the effect of the minimum wage on unemployment, and even more to the point, the effect of the minimum wage on specific segments of the population. And why shouldn’t they? The current official unemployment rate is 9.2%, but the official unemployment rate among those with a Bachelor’s Degree or higher is a relatively healthy 4.4%.
One of the most contentious issues of the past couple of decades has regarded policy debates on how to benefit lower-income individuals (colloquially referred to as ‘Welfare’ programs). This article will not deal with the benefits or disadvantages of Welfare programs in general, but instead will compare the various forms of implementing Welfare. Also, I will show (in the next article) a very important unintended consequence that arises from the current preferred Welfare program, the Earned Income Tax Credit.