Wednesday, February 19, 2014

Govt policies should encourage people to work

If people leave the labor force due to government transfer subsidies, our collective standard of living must drop, as fewer people contribute into the economic pot and more people take from it.

The bottom line is that any society will get more of what it subsidizes and less of what it taxes. 

By providing a low-income subsidy, Obamacare will encourage some people to take a pass on the drudgery and inconvenience of working. Unemployment insurance does the same, at least temporarily. 

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