or, “Yet Another Reason Why I Don’t Support Government Welfare”
Enjoy.
The chart above (source, via Kling) illustrates this phenomenon. It shows income after taxes and transfers as a function of earned income. Notice that as earned income rises from about $15,000 to $30,000, income after taxes and transfers is roughly flat. Indeed, it could even fall. The bottom line: If you are poor, the government is inadvertently ensuring that you have little incentive to try to improve your condition.
Full article:
http://gregmankiw.blogspot.com/2009/11/poverty-trap.html
[quote]SteelyD wrote:
or, “Yet Another Reason Why I Don’t Support Government Welfare”
Enjoy.
The chart above (source, via Kling) illustrates this phenomenon. It shows income after taxes and transfers as a function of earned income. Notice that as earned income rises from about $15,000 to $30,000, income after taxes and transfers is roughly flat. Indeed, it could even fall. The bottom line: If you are poor, the government is inadvertently ensuring that you have little incentive to try to improve your condition.
Full article:
http://gregmankiw.blogspot.com/2009/11/poverty-trap.html
[/quote]
Do you believe that with out welfare that America could have slums that rival Mumbai?