Peru places to visit for This earned income tax credit is a government program that supplements the incomes of low-wage workers. While wage subsidies may be more effective than minimum wage, they have problems as well. For example, wage subsidies cost the government money. As a result, the government may raise taxes to support this program. Other programs used to eliminate this surplus of labor or unemployment provide subsidies to the particular firms that hire teenagers or low-skilled workers, or to programs that train workers to become more productive. Agricultural markets. Agricultural price supports are another example of government intervention that results in a surplus. Peru places to visit 2016.