Monday, June 2, 2014

Working More to Earn Less: Why the Poor Stay Poor

You may have heard of the term "poverty trap"...
the notion that the poor are stuck at the bottom.  What if someone told you that the welfare system exacerbates this cycle by punishing the poor for working more?  Economics Professor Sean Mulholland argues that this is happening every day all over the world.  Well-intentioned welfare programs drastically decrease benefits at certain income thresholds—which in effect can make a breadwinner and his/her family worse off when they start earning more...  Sound absurd?  That's because it is.

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