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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can Governments Intervening in Benefits help Tackle Poverty?

Author: eric_galvao



Answer:

-Benefits are used to Redistribute Income. Tax Revenue, from Higher Incomes, are used to pay the Benefits for those that need them -Means-tested benefits can though Contribute to the Poverty Trap -Governments therefore may: 1. Remove Means Tested Benefits, encouraging more people to work. But those that can't work may be just Utterly Screwed 2. Change Mean-Tested Benefits --> Universal Benefits, but the cost of them may lead to those on Low Incomes are Taxed More


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