Smith is a hard-hearted person who favours giving the poor only sufficient aid to keep them from going hungry. Assuming everyone else in Smith's community feels the same way he does, why might Smith nonetheless be opposed to a proposal to let each community set its own level of welfare support?

ANSWER: When welfare support levels are set locally, each locality has a strong 3

incentive to establish a low relative benefit level to avoid attracting beneficiaries from other jurisdictions. In the end, localities may compete the benefit level down below the amount that even hard-hearted voters would willingly support. This problem can be solved by having the federal government set benefit levels.

May you explain the answer, i am not getting it