A 1996 bill reforming the federal governments antipoverty pr

A 1996 bill reforming the federal government’s antipoverty programs limited many welfare recipients to only two years of benefits.

This change gives people the incentives to find a job more or less   quickly than if welfare benefits lasted forever.

Under which arrangement would the distribution of income be more equal?

a.Welfare benefits last forever

b. Welfare benefits last for only two years

Solution

The distribution of income will be more equal if the welfare lasted forever. There are several reasons for this:

A limited time welfare benefit brings several problems for the people who cannot join the workforce immediately or are disables or physically challenged to do any job, this increases poverty and has the potential to rollback all the progress the government has made in terms of poverty alleviation and raising the standard of living of the people.