Part 9/12:
California’s government, under some policies, has claimed to wage a “war on poverty.” However, critics argue that declaring a war on poverty without addressing foundational economic issues leads to misguided policies that do not eradicate poverty but instead displace it or shift the problem elsewhere. Mandated wage increases without considering economic realities often harm the very people they aim to help.
For instance, as minimum wages increase, businesses respond with automation, resulting in fewer jobs for vulnerable populations who rely on these entry-level positions. The concept of “supporting” workers by raising wages conflicts with the economic principle that such interventions can reduce employment opportunities, especially for young and unskilled workers.