Many workers, such as the grocery clerk shown here, hold minimum-wage jobs.
How should Americans deal with the gap between rich and poor?
Over the years, Americans have tried to balance the extremes of wealth and poverty in society. Some have favored private charity to help the poor, while others have backed government policies to distribute wealth. Still, the gap remains. Use the timeline below to explore this enduring issue.
1800s Community Aid
Private charities provide aid for the poor.
1900 Poverty Level
An estimated 40 percent of Americans live in poverty.
1933 New Deal
Federal government provides aid for the poor.
1964 War on Poverty
President Johnson expands programs to reduce poverty.
1980s Reaganomics
President Reagan promotes business growth to reduce poverty.
1996 Welfare Reform
Government limits welfare programs.
Migrant farm family in Virginia
The Minimum Wage The government has tried to reduce poverty for working people by setting a minimum wage. Supporters say this wage is too low to provide a decent living. Critics say an increase would hurt employers and make it harder for them to provide low-level jobs.
“We all lose when American workers are underpaid. It’s a myth that small businesses can’t pay a higher minimum wage…. When businesses don’t pay a living wage, all society pays. We pay through poverty … [and] needless disease…. We pay as businesses and communities suffer economic decline.”
—Margot Dorfman, CEO, U.S. Women’s Chamber of Commerce
“Decades of economic research confirm that increasing the minimum wage destroys jobs for low-skilled workers while doing little to address poverty. When faced with higher labor costs, employers tend to hire fewer, more highly-skilled and experienced employees. That leaves unskilled or low-skilled workers … out in the cold.”
—from The Economics Policy Institute