The Need for Appropriate Government Response to the Global...

Economists called the recent Global Financial Crisis the worst financial crisis since the Stock Market Crash of 1929 and the Great Depression. The United States of America are in a time of recession and increasing numbers of people are finding themselves in need of assistance. Low-income individuals and families are suffering as hours are cut, benefits shrink, and programs they depend on disappear due to state budget cuts. It is imperative that the government find an efficient policy response that benefits as many low-income individuals and families as possible in the next five years. The most promising and urgent policy response to improve the well-being of low-income individuals and families in the next five years would be to†¦show more content†¦Since the EITC is categorized as a tax program instead of a social welfare program (Bane, 2009) and children are not a prerequisite for assistance, and single individuals and individuals with criminal backgrounds would still be able to benefit from any program expansion, as long as they were working. The underlying belief that those who participate in the labor market are most deserving of aid is an idea that has permeated American attitudes toward poverty and social welfare policy since the colonial era (Patterson, 2000). Structuring a policy around the EITC could reinforce this belief, further marginalizing those who cannot participate in the workforce. Although I believe that an EITC expansion would offer the greatest benefit for the largest number of low-income individuals and families, an obvious criticism is that it would only benefit those who were able to participate in the work force. Undocumented workers who do not file taxes and individuals who are unemployed would not see any returns from the recommended policy changes. Also along these lines, the previously mentioned benefit for individuals with criminal records is non-existent if they are not able to find employment. I think that these concerns could be addressed by including additional employment assistance pr ograms in the new policy for the unemployed, including ex-convicts.Show MoreRelatedFinancial Crisis : The Fiscal Crisis1355 Words   |  6 Pagesgeneral, a financial crisis is not an accident; it may take several years and has complex and interlaced causes (Claessens and Kodres, 2014). 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