In a speech last month, President Obama brought renewed attention to economic disparities in the United States. The gap between rich and poor is indeed substantial — much larger than in most developed nations and much larger than it was 40 years ago. So what is the best way to help those struggling at the bottom of the economic ladder?

If we could figure out a way to do it, the most effective solution would be to increase the skills of those low-wage workers. Many studies have shown that the financial return of education is now high by historical standards. Reforming the education system so that more students graduate from high school and college is thus crucial to a more egalitarian prosperity. But upgrading the skills of the labor force is a decades-long project, not a quick fix. And educational reform is easier said than done.

As a result, those who are worried about inequality look for more immediate ways to help workers with limited skills. Before turning to President Obama’s proposal, let’s consider two other possibilities. For lack of better terms, call them Plan A and Plan B:

PLAN A The government subsidizes the incomes of low-wage workers. These subsidies are financed by increasing taxes on middle- and upper-income Americans.

PLAN B The government again subsidizes the incomes of low-wage workers. But under this plan, the subsidies are financed by taxing those companies that hire low-wage workers.