Answer
a) The government might consider policies to increase employment opportunities.
b) The government might consider policies to improve education opportunities.
c) We can try to reduce spending on current welfare programs to increase spending on enhancing economic mobility.
Work Step by Step
a) An increase in employment opportunities would increase the labor demand and the wages paid for those laborers. Additionally, the government could increase the funds to a workfare program (instead of a welfare program). The funds would encourage those with lower incomes to go find paying employment.
b) The increase in education opportunities would increase the supply of human capital.
c) One advantage of increasing spending to enhance economic mobility is that there is more of an incentive to work hard and get ahead. However, the expense of such programs can be hard on people who do not make their way through the program. (Also, there would be less funds for those in current welfare programs.)
