Asked by Jacob Rucker on May 14, 2024
Verified
Outline the possible work disincentives created by anti-poverty programs. Is there a way to solve this problem without causing other forms of inefficiency to arise? Explain your answer.
Work Disincentives
Factors or conditions that discourage individuals from seeking or maintaining employment, often due to economic policies or social benefits structures.
Anti-Poverty Programs
Government or non-government initiatives designed to reduce or eliminate poverty by providing support and resources to the needy.
Inefficiency
The state of not achieving maximum productivity or economic benefit from resources due to suboptimal allocation, processes, or decisions.
- Comprehend various anti-poverty strategies and welfare reforms, including their potential disadvantages, like work disincentives.
Verified Answer
MB
Maryan BerheMay 20, 2024
Final Answer :
A high marginal tax rate exists on welfare transfers. There is inherently a trade-off between burdening the poor with a high effective marginal tax rate and burdening taxpayers with costly programs to reduce poverty.
Learning Objectives
- Comprehend various anti-poverty strategies and welfare reforms, including their potential disadvantages, like work disincentives.