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Imagine that the government is considering three possible welfare programs. Plan A: Give each low-income household $10,000, Plan B: Give each low-income household $20,000 minus
Imagine that the government is considering three possible welfare programs. Plan A: Give each low-income household $10,000, Plan B: Give each low-income household $20,000 minus the recipient's income. Plan C: Match the income of each low-income household, where the maximum they can receive in benefits is capped at $10,000. Which program would be MOST effective in giving workers an incentive to become, or remain, gainfully employed?
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