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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.

Short Answer

Expert verified

Government programs like TANF, EITC, SNAP, and Medicaid provide aid to low-income groups and beneficial for children and families but things very state's eligibility.

Step by step solution

01

Step  1.  Welfare programs

Assistance programs by the government to help those in the lowest income tier meet their basic necessities.

02

Step 2. Temporary assistance for needy families 

In this program, the federal distributes money to states to decline the poverty rate through anti-poverty programs,

the government requires welfare programs & that programs are beneficial but not successful in improving the total level of income for poor families.

03

Step 3. Supplement nutrition assistance Program

This program is federally linked where needy people would be provided the debit card to purchase food items with the condition that individuals have to spend 30% of their income on food if 30% won't be enough then the government will help but this program leads poverty trap because spending $30 for an individual from $100 would be enough but takes a big part of income.

04

Step 4. Earned income tax credit

This program provides tax credits to the individuals as per their income level the main flaw of this program is $1 increase in income means a $1 reduction by scheme benefits, later that reduction would be 21 cents.

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Most popular questions from this chapter

Jonathon is a single father with one child. He can work as a server for \(6 per hour for up to 1,500 hours per

year. He is eligible for welfare, and so if he does not earn any income, he will receive a total of \)10,000 per year.

He can work and still receive government benefits, but for every \(1 of income, his welfare stipend is \)1 less. Create

a table similar to Table 15.4 that shows Jonathanโ€™s options. Use four columns, the first showing number of hours

to work, the second showing his earnings from work, the third showing the government benefits he will receive,

and the fourth column showing his total income (earnings + government support). Sketch a labor-leisure diagram of

Jonathanโ€™s opportunity set with and without government support.

What goods and services would you include in an

estimate of the basic necessities for a family of four?

Exercise 15.2 and Exercise 15.3 asked you to

describe the labor-leisure tradeoff for Jonathon. Since,

in the first example, there is no monetary incentive for

Jonathon to work, explain why he may choose to work

anyway. Explain what the opportunity costs of working

and not working might be for Jonathon in each example.

Using your tables and graphs from Exercise 15.2 and

Exercise 15.3, analyze how the government welfare

system affects Jonathanโ€™s incentive to work.

Imagine that the government reworks the welfare policy that was affecting Jonathan in question 1, so that for each dollar someone like Jonathan earns at work, his government benefits diminish by only 30 cents. Reconstruct the table

from question 1 to account for this change in policy. Draw Jonathanโ€™s labor-leisure opportunity sets, both for before

this welfare program is enacted and after it is enacted.

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.

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