More Effective Ways of Helping the Working Poor

In 2007, the U.S. Bureau of Labor Statistics determined that 7.1 million workers were living below or at the official poverty level. Twenty-five percent of families are considered working and poor. The Census Bureau and the Working Poor Families Project agree that willingness to work doesn't always translate to living wages. A variety of initiatives exist to help the working poor raise their standard of living.
  1. Tax Relief

    • Through the Earned Income Tax Credit (EITC), income transfers to the working poor have been initiated. Low-income earners receive federal income tax credits that increase as their work income increases. This tax relief is intended to boost the work force and enable the working poor to meet rising economic demands. Reviewing the taxes charged to the working poor on a yearly basis can assist in elevating their living standards.

    Grants (Social Cash Transfers)

    • Non-governmental organizations (NGOs) like the Strive For Change Foundation and government initiatives also help the working poor by giving grants also known as social cash transfers. Grant committees identify prospective recipients and monitor the funds in periodic reports. The Working Poor Families Project is a state-to-state government initiative to assist the working poor secure their economic future. Through social welfare programs funded by the government, the working poor can receive subsidized housing, healthcare and meal plans.

    Increasing National Minimum Wage

    • Employees in government firms are paid low wage rates compared to their counterparts in the private sector. Increasing the national minimum wage through the Congressional Budget Office is one step toward helping them boost their income and improve their standard of living. The minimum wage has increased steadily throughout the years and for most states, it's $7.25 per hour as of March 2011.

    Job Training

    • Job training programs can help the working poor to increase their competitiveness in the labor market since they focus on the acquisition and improvement of marketable skills. Kentucky and Minnesota are two states that have turned welfare systems to job programs. The California Employment Training panel program is an example of job training program targeted at low wage workers, who have seen their wages increase upon acquiring new skills.

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