Even lump sun transfers reduce incentives to work because as most people get richer they prefer to work less.
Is this necessarily a bad thing?
Imagine a utopian future. How much time would you expect people to spend working, more or less than they do currently?
It might not be bad, but it does result in their wealth being increased by less than the lump sum amount received.
Even lump sun transfers reduce incentives to work because as most people get richer they prefer to work less.
Is this necessarily a bad thing?
Imagine a utopian future. How much time would you expect people to spend working, more or less than they do currently?
It might not be bad, but it does result in their wealth being increased by less than the lump sum amount received.