America’s Poorest Are Getting Virtually No Assistance
They further note that the EITC expansion partially exacerbate the problem, by further increasing the supply of labor, thus putting downward pressure on wages.
.. the strong increase in labor demand, as the late 1990s ultimately became a unique period of truly full employment. For the first time in decades, real low-wages grew at the rate of productivity. In the early 1990s, poverty among black mother-only families with kids was around 60 percent. By the end of the 1990s it was around 40 percent, a massive decline over such a short time period.
.. if the Federal Reserve is the “lender of last resort,” then the government must be “the employer of last resort.”