Oren Cass of the Manhattan Institute has offered an alternative both to the minimum wage and to the trillion dollars that we spend on anti-poverty programs: wage subsidies.
The government would supplement the salary for low-paying jobs so that they would constitute a living wage. But this would allow small businesses to hire more people, rather than less (as would be the case with increasing the minimum wage). And it would make welfare recipients work for their livings, possibly starting them on a path towards upwards mobility. And wage subsidies would cost taxpayers less money than the current ineffective system, while still providing a “safety-net.”
Read the case for wage subsidies after the jump. What do you think of the idea? Can you think of any other creative solutions to these kinds of problems? [Read more…]