Posted: May 17, 2013 5:57 am
I don't know how to word this question in a way that describes my exact query here, but here is my thought process:
People who receive welfare are unlikely to save that money.
If the money they receive is entirely spent on rent and goods/services then the tax businesses pay in this area (the percentage of the federal budget allocated to welfare) will be repaid by those on welfare.
So it would seem that welfare at the lower levels is less "wealth redistribution" and more of a loan to the poorest people in society to help them get by.
I tried to find academic articles on this topic but struggled. Anyone got any good links that discuss the efficiency or are familiar with the topic?
People who receive welfare are unlikely to save that money.
If the money they receive is entirely spent on rent and goods/services then the tax businesses pay in this area (the percentage of the federal budget allocated to welfare) will be repaid by those on welfare.
So it would seem that welfare at the lower levels is less "wealth redistribution" and more of a loan to the poorest people in society to help them get by.
I tried to find academic articles on this topic but struggled. Anyone got any good links that discuss the efficiency or are familiar with the topic?