What would be the most effective way of raising people out of poverty? (LO9) a) Cut off welfare payments to every family with at least one adult member between the ages of 18 and 64 . b) Raise the minimum hourly wage. c) Eliminate the Earned Income Tax Credit. d) Have the government put welfare recipients to work at minimum wage jobs.

First, let's understand the implications of each choice: a) Cutting off welfare payments to families with at least one adult member between 18 and 64 may push them to find work, but it could also lead to more financial instability and deeper poverty for those who are unable to secure employment. b) Raising the minimum hourly wage would increase the income of low-wage workers, which could help lift some people out of poverty. However, it might also lead to layoffs or reduced hours if employers cannot afford the increased labor costs. c) Eliminating the Earned Income Tax Credit (EITC) would result in lower incomes for low-wage workers, which could push more people into poverty. d) Having the government put welfare recipients to work at minimum wage jobs serves as a safety net and may increase their chances of escaping poverty. However, this might not be feasible for everyone, especially those with physical or other limitations.

To find the most effective way, let's analyze the impact of each option on poverty alleviation: a) Cutting welfare payments could lead to more poverty if people are unable to find jobs or face other barriers. b) Raising the minimum wage has the potential to lift people out of poverty by providing them with higher incomes, but it could also have negative consequences, such as job losses. c) Eliminating the EITC would likely result in increased poverty, as it is specifically designed to support low-wage workers. d) Putting welfare recipients to work at minimum wage jobs might help some escape poverty, but it might not be the best long-term solution for everyone.

We can conclude that (b) raising the minimum hourly wage would be the most effective way of raising people out of poverty, as it directly increases the income of low-wage workers and has the potential to lift them out of poverty. However, it is important to keep in mind the potential negative consequences of this policy and consider complementary measures that address potential job losses and possible inflationary effects.