Eco 405 Economic Policy Recommendation

Economic Policy RecommendationNameECO405 Economic Problems and IssuesProfessor: Diana BoninaMarch 7, 2013Briefly describe the economic problem you have selected. According to text in today’s American economy, poverty is essentially an income distribution problem. The U.S. economy generates enough income to go around so that no one really has to live in poverty. But enough income does not go to everyone, and some people do live in poverty. Poverty is concerned with the relationship between the minimum needs of people and their ability to satisfy those needs. The difficulty with any definition of poverty involves the meaning of minimum needs and the amount of money required to satisfy these needs. (Ansel M. Sharp, 2010) Those in poverty sometimes face an additional obstacle to earning an adequate income. Discrimination as we use it means that equals are treated unequally or that the ‘unequal’s are treated equally. Discrimination exists in the labor market when people with equal productivity are paid different wages or people with differences in productivity are paid equal wages. Discrimination can also exist in the product market when consumers pay different prices for the same product. (Ansel M. Sharp,