[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.
- Social Security
- Food Stamps
- Earned Income Tax Credits
Economist worry about incentives in cases like this.
Because, if you tax something, you get less of it, and if you subsidize something, you get more of it.