Question

Central hypothesis: Special interest groups such as the Populists, labor unions, agriculturalists, and groups dedicated to helping the individuals living in poverty help the economy prosper, on average, when they use federal power for redistributing income and wealth (taking the income earned by workers and giving it to others through government-sponsored programs). (Key words: Populists, special interest groups, command control, and agriculture)

Counter-hypothesis: They do not.

Data: Consult with Common Sense Economics (2016). What does the data on poverty rates indicate prior to and after President's Johnson and his launch of the "War on Poverty."

Conclusion: After looking at the arguments of the two groups of economists and the data, what do you conclude? Should you support or not support the central hypothesis? Explain. Support your explanation with sound economic reasoning and include citations from both CSE (2016) and AEH (2011).

Link to today Explain how you can connect this essay and your responses to better understand something that is happening in the U.S. economy today.

Note: To earn full credit, use Common Sense Economics (2016) and American Economic History (2011) to provide the economic reasoning that backs your answers. Note: You cannot use earlier editions of either book.

Answer 1

1. On January 1964, President Johnson declared unconditional ''War on Poverty'' in America. From then, U.S tax prayers spent more than $22 trillion on anti-poverty programs.

2. This is led to be three times higher than all the military wars of U.S since the American Revolution.

3. With various acts such as EOA, 1964 and HEA, 1965, President began to support students pay their higher education.

4. Since introduction, the lack of progress is still in progress in major part of the welfare system itself.

5. Welfare system basically increased dependency of inter-generation than self-reliance, so some feel that central hypothesis is necessary where others don't.

*EOA,1964 - Economic Opportunity Act of 1964.

HEA, 1965 - Higher Education Act of 1965