Question:
How can Governments Intervening in Benefits help Tackle Poverty?
Author: eric_galvaoAnswer:
-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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