Question

Argue why welfare policies are good or bad from an economic perspective. Make sure to show graphically how welfare policies create a work disincentive.

Ps: please be very specific and answer the question step by step.

thanks

Answer 1

Answer- Welfare policies are rules and guidelines that are developed by the government or any other body for the betterment of people’s life. Example- Imposing taxes on polluting induatfies so that the same could be used to minimize the effect of pollution. Welfare policies play a very vital role in the lives of people and they also have some pros and cons which are listed below :-

PROS

• Such policies and procedure help people in getting social justice and also helps in equitable allocation of the resources.

• Welfare policies help the people who are not to live a life with good standard of living and also helps in being them at the same level as people of higher standards by making policies that are justifiable for the society as a whole.

• Policies are used to bring changes in peoples lives and such welfare policies help people have the resources that they might capable of having.

• welfare policies are providing assistance to people where it is needed the most and helps the people in improving their lives.

Cons

• It is generally difficult to make policies that suit everybody and sometimes the government or any other body ends up making policies or acts or laws in favour of one society or community which is not justified and does not promote equality.

• Welfare policies generally focus on people that belong to the poor or lower class as it is believed that the middle class and upper class can perform better than the lower class.

• Such welfare policies can mainly lead to dependence of such people involved on the policies and they themselves does not feel to grow and develop.

~ The graph below shows how the people with high income levels receive less benefits and less number of welfare policies are generated for them as there is an inverse relation between the income and welfare policies. Also people who are getting welfare policies get so much dependant on them that they don’t feel like working.