[This is part of the series: The Complete Guide To Economics 101.]
What is welfare?
Welfare is any government program is used to redistribute to the needy, in an effort to supplement their incomes.
Examples?
- Social Security
- Food Stamps
- Earned Income Tax Credits
- Medicaid
Economist worry about incentives in cases like this.
Why?
Because, if you tax something, you get less of it, and if you subsidize something, you get more of it.