“Subsidies lead to the overproduction and overconsumption of goods away from what people would freely choose when able to freely calculate. When subsidies are given to individuals based on their economic situation, they create a stronger incentive for people to choose the condition that makes them eligible for those subsidies. Welfare encourages those with low income to stay on a low income. Subsidies for the unemployed create an incentive for unemployment. Worse, by being financed at the expense of the employed, they also lead to the erosion of the incentive to work.”

Principles Of Economics by nostr:npub1gdu7w6l6w65qhrdeaf6eyywepwe7v7ezqtugsrxy7hl7ypjsvxksd76nak