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• W1499559802 abstract "That the “Waron Poverty” that commenced in the late 1960s would have retarded and perhaps even reversed the rate at which people advanced above some arbitrarily established poverty level would have been commonplace to nearly any economist from the late 18th century until the mid-2Oth century. It was clear to those economists that the receipt of transfers would reduce the efforts of recipients to earn income, and so would slowtheir economic advancement. It was equally clear to those economists that the payment ofadditional taxes to finance income transfers also would reduce the efforts of those with higher incomes, and this reduced effort further would dampen capital accumulation and economic progress. Arguments and evidence presented by such people as George Gilder and Charles Murray would have been eminently reasonable to classical economists, as Henry Fawcett’s 1871 work shows. At the same time, however, the enactment of such programs by legislatures despite, and perhaps even because of, their consequences is fully consistent with our knowledge of public choice processes. Because it is difficult to attribute the enactment of such programs to faulty economic understanding by legislators, even though there is always room for improved understanding, it would seem to follow that significant reform requires more than better analysis of the consequences ofparticular measures—and requires instead some type of institutional or constitutional reformation in the processes through which public choices emerge. In this essay I explore some political and economic sources ofthe disparity between the rationalizations orjustifications for the transfer" @default.
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• W1499559802 date "1986-01-01" @default.
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• W1499559802 title "WEALTH TRANSFERS IN A RENT- SEEKING POLITY" @default.
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