A nice piece on the way the War on Poverty ensures that there will always be an underclass to justify the demand for a War on Poverty. By Steven Horwitz of Coordination Problem, aka The Austrian Economists.
First, eliminate all minimum-wage and occupational-licensure laws.
These laws cut the bottom rungs of the economic ladder off from those who lack the skills or capital to justify the higher wage or pass the licensing requirements. Minimum-wage laws make it prohibitively expensive to hire lower-skilled workers, preventing them from getting the very basic job skills they need to move up that ladder. Licensure laws were created to shut the poor and nonwhite out of the marketplace, and they have, unfortunately, succeeded.
Second, open up the public schools to competition. Urban public schools are not just ineffective; they are destructive of human capital. Throwing more money at them hasn’t worked, and it’s time to give poor Americans, especially poor families of color, the opportunity to get the education they deserve by making schools actually compete for students.
Finally, end the War on Drugs.