---
title: "Meaning & Key Takeaway of: Transfer payments discourage the…"
description: "\"Transfer payments discourage the recipients from earning income in the present and from investing in their potential to earn income in the future. Peop..."
image: "https://sms4smile.com/quotes/i/dec/robert-higgs-12637_cost_transfer-payments-discourage-the-recipie_2884150.jpg"
---

#  Transfer payments discourage the recipients from earning…

![“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.” quote by Robert Higgs](https://sms4smile.com/quotes/i/dec/robert-higgs-12637_cost_transfer-payments-discourage-the-recipie_2884150.jpg)   [Download](https://sms4smile.com/quotes/i/dec/robert-higgs-12637_cost_transfer-payments-discourage-the-recipie_2884150.jpg) [Open image](https://sms4smile.com/quotes/i/dec/robert-higgs-12637_cost_transfer-payments-discourage-the-recipie_2884150.jpg)

> “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.”

[Robert Higgs](https://sms4smile.com/quotes/author/robert-higgs/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

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.

★ ★ ★ ★ ★   No ratings yet

[Idleness](https://sms4smile.com/quotes/about/idleness/) [Income](https://sms4smile.com/quotes/about/income/) [Investing](https://sms4smile.com/quotes/about/investing/) [Payment](https://sms4smile.com/quotes/about/payment/) [People](https://sms4smile.com/quotes/about/people/) [Time](https://sms4smile.com/quotes/about/time/)

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