=+12. Means-tested transfer payments reduce the current poverty rate. However, they also create an incentive structure that

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=+12. "Means-tested transfer payments reduce the current poverty rate. However, they also create an incentive structure that discourages self-sufficiency and self- improvement. Thus, they tend to increase the future poverty rate. Welfare programs essentially purchase a lower poverty rate today in exchange for a higher poverty rate in the future." Evaluate this statement.

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Microeconomics Private And Public Choice

ISBN: 9780324320367

11th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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