Cost Quote by Robert Higgs
“Transfer payments discourage the recipients from earning income in the present and from investing in their potential to earn income in the future. People respond to a reduced cost of idleness by choosing to be idle more often.”
About This Quote
Source Academic paper on welfare economics
Transfer payments may reduce recipients’ incentive to work or invest, leading to increased idleness.
In simple terms: Aid can discourage work.
Key Takeaway
Design incentives that promote productivity.
Themes
economics
welfare
incentives
Mood
critical
analytical
Type
economics
policy
When to use this quote
- social safety nets
- employment programs
- tax policy
- economic modeling
Key Concepts
public policy
behavioral economics
Questions to Reflect On
- How to balance aid with work incentives?
- What alternatives reduce idleness?
A Different Perspective
May overlook benefits of social safety nets.
![“[Photography is ] likewise even French impressionists. So the Sculls bought pop. It was politics, and they moved with it. And I think that could be happening, to some degree, with photography, too. It doesn't cost as much to do it, either.” quote by Garry Winogrand](https://sms4smile.com/quotes/img-quotes/2eb/garry-winogrand-2342_cost_photography-is-likewise-even-french-impr_2802.jpg)
