The Minimum Wage Versus The Earned Income Tax Credit

May 2nd, 2013 Barry Deutsch Posted in Economic cartoons | Comments Off

minimum-wage-vs-eitc

The cartoon shows two people arguing, a young woman with her hair in a ponytail, and an older man wearing a suit.

PANEL 1
WOMAN: We need to help low-income workers, we should raise the minimum wage!
MAN (thoughtfully): The minimum wage is inefficient. To really help low income workers, you’d have to raise the Earned Income Tax Credit.

PANEL 2
WOMAN (enthused): Sounds good! Let’s raise the Earned Income Tax Credit.
MAN (angry): NEVER! That would increase government spending!

PANEL 3
WOMAN: But you just said…
MAN: What a shame there’s no policy that helps low-income workers without government spending.

PANEL 4
WOMAN (annoyed): You mean, like raising the minimum wage?
MAN (enthused): Hey, you know what poor people really need? Tax cuts for millionaires!

SMALL ADDITIONAL PANEL AT END
WOMAN (enthused): We should raise both the minimum wage and the tax credit!
MAN: Give me a sec to work out why I’m against that.