James Leduc

ENG 1050 – 009

Dr. Vela

3/12/2024

The Need for Social Equity and a Simple Way to Achieve It

“The money which a man possesses is the instrument of freedom; that which we

eagerly pursue is the instrument of slavery” is what Jean-Jacques Rousseau said in his classic

book “Confessions.” (Rousseau & Griffith) This quote from over two decades ago still rings true

to a growing population of Americans struggling to make ends meet while giving all their time to

their employers. Americas current minimum wage is $7.25 per hour; when converted to annual

income that number falls far below the poverty line, which many believe to be too low to survive

anyway. (Luce) There was a time where the middle class was more prosperous and the American

dream was alive, when America was the worlds role model; yet we have somehow fallen behind

and let the promise of the land of opportunity go unfulfilled. Wealth is accumulating

exponentially in the hands of the few, while many struggle to survive. In the early nineties,

human rights movements were starting to bring power to workers and unions. Americans were

fighting to get their fair share. Now, with labor unions having become obscure and minimum

wage stagnant, it seems like the rich have won. Many believe it’s not too late, and there is still a

chance to level the playing field for the working class. The roots of the problem run deep in

society and the proposed solutions are plenty. Some say the government should address the

poverty issue themselves. With tax breaks and reformed welfare policy. In the essay

“Policymakers Should Exercise Maximum Caution on the Minimum Wage” Michael Saltsman

suggests the government do just that. The essay used the EITC (Earned Income Tax Credit); “a
refundable federal tax credit that boosts employees’ wage through the tax code rather than a

mandate on employers” enacted in the late nineties as an example of policy to help the

impoverished (Saltsman). The other side of the argument claims that the government should

mandate employers to pay employees a “Living Wage,” witch Stephanie Luce describes as “a

wage adequate to cover [a workers] basic expenses and to reproduce themselves and the future

labor force.” (Luce) Adjusting the federal minimum wage to a living wage may seem like a

straightforward approach, but it’s limited in who it helps and has a negative effect in many

industries. Giving low-income citizens tax breaks is a much more direct approach but ends up

costing the same demographic when the government has less tax revenue for government

spending that may benefit them. Each side of the argument aims to put more cash in the hands of

low-income Americans but fails to understand the root cause of poverty: social inequity. The

only solution to help the growing population of impoverished citizens is a radical change in

social, economic, and fiscal policy that affects both the poor and the wealthy, to promote social

equity and lessen the gap between the upper and lower class.

To promote social equity, we must first understand what it means for a society and

economy to be equitable. To achieve social equity; wealth must be distributed fairly to those who

create the most economic value. Political power must be shared equally with power concentrated

in the working class as opposed to the wealthy. In today’s current economy wealth often funnels

to those who do the least work. The general assumption is private industry is the most efficient

when left unhinged without government intervention. In “Saving Capitalism” by Robert Reich he

states “The expanding freedom of corporations to do what they want may theoretically enlarge

the economic pie for everyone. But in recent years the major consequence of such freedom has

been to give bigger slices to the top executives… and smaller slices to everyone else” (Reich 13).
This imbalance leads to underpaid workers and overpaid executives. Additionally, to increase

social equity, welfare programs and government spending should be geared towards helping

those who are unable to create the same economic value. This welfare should have the goal to

prop up the impoverished who have not been given a chance to actively participate in the

economy such as the disabled and unemployed. These welfare programs should not simply put

cash in people’s pockets but provide meaningful training and education as to increase the

efficiency of Americas labor force. For welfare programs to truly improve an economy they must

be funded in a way that the poor is not bankrolling their own welfare. Taxes must be levied on

the rich through a simplified tax code that doesn’t allow for loopholes that drastically decrease

one’s taxable income.

The current welfare system works mostly on government transfers to provide benefits

like social security, housing programs, food stamps, and refundable tax credits. These welfare

programs currently act as self-funded rations, giving the most impoverished citizens just what

they need to survive, and funding it through the taxes that are disproportionally paid by the lower

and middle class. The “Earned Income Tax Credit” mentioned earlier is a perfect example of

these. The issue with funding welfare through tax breaks for the poor is it costs the same people

it’s trying to help in the form of lost tax revenue the government could use on public goods such

as schools and low-income housing. It’s clear the welfare state needs drastic reform but simply

giving citizens more money won’t help the real causes of the issue.

Welfare reform won’t solve the issue entirely though. The working class must be given

more power over their employers. Employees need to be played a fair living wage for the work

they do. The most proposed solution to this problem is to enact a higher minimum wage.

However, a higher minimum wage may cause harm to many industries and end in job losses for
some Americans (Saltsman). What workers need most is for unions to return to being

commonplace in all American industries. Unions allow for collective bargaining power to force

employers to treat workers fairly. Unions have been present in America sense the 1700s but

sense the 1980’s union membership in America has halved (Sandroff). Many industries have

unions to protect workers from unfair treatment but many of the workers who need them most

don’t have the option of a union. Customer facing jobs such as food service could benefit greatly

from workers unionizing to ensure employers don’t take advantage of workers and give every

employee a chance to earn a living wage.

The American lower class is growing rapidly, and things need to change in our economy

and society. Taxes must be levied on the rich, not to redistribute to the poor, but to fuel education

and public goods. Taxes must be used in a way that increases the total economic pie for

everyone. Workers must also be given more power over employers through unions, ensure the

working class isn’t taken advantage of and has a fighting chance. If all these changes are made

we might be able to move to a economy that is more equitable to everyone.

Luce, Stephanie. “Minimum Wages and Living Wages.” Spotlight on Current Events.

Saltsman, Michael. “Policymakers Should Exercise Maximum Caution on the Minimum

Wage.” Spotlight on Current Events.

Reich, Robert B. Saving Capitalism: For the Many, Not the Few. Alfred A. Knopf, 2015.

SANDROFF, RONNI. “The History of Unions in the United States.” Investopedia, 12

Mar. 2024, https://www.investopedia.com/financial-edge/0113/the-history-of-unions-in-the-

united-states.aspx#citation-32.