4 ms·
It is still a transfer payment, and it isn't free. That much is obvious enough. But it still provides a superior alternative to needs-based welfare from the per
by nwah1 4y ago
It is still a transfer payment, and it isn't free. That much is obvious enough. But it still provides a superior alternative to needs-based welfare from the perspective of eliminating perverse incentives. And since that is the point, it fulfills its purpose.
- k2enemy 4y agoIt isn't a transfer though. See reply to sibling comment.
- nwah1 4y agoAnd the reply to that explains well how it is a transfer payment. And of course it is. A sizable number of people don't earn any income at all. You do have a point about inflation, but supply in most cases will respond accordingly. There are important exceptions, like land rent, which scales with the income-earning ability of tenants, because it is a pure monopoly with a vertical (static) supply curve. see: The Law of Rent