Pros and cons of Edwards' plan to attack poverty

Democratic presidential candidate John Edwards is calling for a national effort to cut poverty by a third, lifting 12 million Americans out of poverty by 2016. He is calling for ending poverty by 2036, lifting 37 million people out of poverty

Here are some of his proposals:

1. Create a million public "stepping stone jobs" for workers who can't find work elsewhere. The public works program would be reserved for those who cannot find work after looking for six months and is designed to help people learn workplace discipline and prepare them for the job market. The minimum- wage jobs would last 12 months. Workers would have to stay off drugs, not commit any crimes and pay child support.

PROS: Could help move people who are struggling into the permanent job market.

CONS: These would be make-work jobs. If the jobs were valuable, they would already exist.

2. Raise the federal minimum wage from $5.15 per hour to $9.50 per hour by 2012.

PROS: Would help 15 million low-wage workers earn more income.

CONS: Some businesses may choose to hire fewer workers if they have to pay them more.

3. Cut taxes for low-income workers by tripling the Earned Income Tax Credit to $1,236 per year for single adults.

PROS: The proposal would give 4 million low-income workers an average tax cut of $750 per year, helping lift workers out of poverty and drawing more men into the work force.

CONS: Cost to taxpayers.

4. Strengthen labor laws by passing the Employee Free Choice Act, which would allow workers to form a union by signing cards saying they favor a union, rather than by a formal election.

PROS: Edwards' campaign points to studies that say union workers earn 28 percent more than nonunion workers, thereby helping boost incomes. Unions claim that companies often use intimidation tactics to fight union votes.

CONS: Many businesses don't like dealing with unions and say the proposal is less democratic than current law. Companies say the change would make it easier for unions to intimidate workers into signing cards. Making it easier to unionize could also hurt Southern states, which tout their low unionization rates in industrial recruiting.

5. Help low-income workers save with "work bonds." This would provide a tax credit to help low-income workers save. The credit would match wages up to $500 per year and be directly deposited in individual savings accounts.

PRO: Would help low-income workers save money.

CON: Cost to the taxpayers.

6. Pass a federal predatory lending law similar to the ones in some states such as North Carolina. It would prevent deceptive terms and abusive interest rates, capping them at 36 percent.

PROS: Would help protect homeowners from losing their houses through questionable practices.

CONS: The reason these loans exist is because there is a market for them.

7. Pay the first year of college for low- income students who agree to work part time and keep their grades up. This is similar to a pilot program that Edwards started in Greene County, in Eastern North Carolina.

PROS: Helps increase the college-going rate among people whose families did not go to college.

CONS: Cost to the taxpayers.