Blog Post

AEIdeas

One government program that many conservatives like — especially vs. the minimum wage — is the Earned Income Tax Credit, the federal subsidy for low-income, working households. It raises living standards by raising household income. What’s more, it provides a work incentive — incomes have been declining for those with only a high-school education or less — because it only applies to working households. It’s a program that should be both expanded and reformed. In a recent essay (one that also includes some ideas on housing policy and infrastructure, among other topics) economist Ed Glaeser offers an additional way to boost work and incomes: