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No, I read it says that welfare systems successfully alleviate poverty, which is why quoting numbers prior to the application of those welfare systems is not gi
by ptaipale 11y ago
No, I read it says that welfare systems successfully alleviate poverty, which is why quoting numbers prior to the application of those welfare systems is not giving a realistic assessment of poverty.
I.e. if a worker gets $5 in salary and $5 in welfare subsidies, it is somewhat dishonest to argue that because his income is only $5, the welfare subsidies are insufficient.
It's the net income after taxes and transfers that should be looked at when considering poverty, not pre-tax pre-transfer income (which quite astonishingly seems to be used fairly often).