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Chapter 15: Q.33 (page 378)

Explain how you would create a government

program that would give an incentive for labor to

increase hours and keep labor from falling into the

poverty trap.

Short Answer

Expert verified

By reducing welfare payments by Government

Step by step solution

01

Step 1. Definition 

Welfare payments

Payments provided by the government as an aid to the needy people to meet their basic needs are referred to as welfare payments.

02

Step 2. Explanation

Welfare payment program by the government should not increase incentives on more working hours, rather they can decrease working hours for low paying jobs, in order to encourage people to work hard for high paying jobs.

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Most popular questions from this chapter

Who are the near-poor?

Many critics of government programs to help low-

income individuals argue that these programs create a poverty trap. Explain how programs such as TANF, EITC, SNAP, and Medicaid will affect low-income and whether or not you think these programs will benefit families and children.

Suppose there are two possible income distributions in a society of ten people. In the first distribution, nine people would have incomes of \(30,000 and one person would have an income of \)10,000. In the second distribution, all ten people would have incomes of $25,000.

a. If the society had the first income distribution, what would be the utilitarian argument for redistributing income?

b. Which income distribution would Rawls consider more equitable? Explain.

c. Which income distribution would Nozick consider more equitable? Explain.

How does the TANF attempt to loosen the poverty trap?

What are some reasons why a certain degree of

inequality of income would be expected in a market

economy?
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