Answer
a. Welfare recipients that are able to work are mostly cut off from their government benefits after two years, they are more incentived to go out and look for a job, instead of their benefits lasting forever.
b. The loss of a welfare check means that someone who is struggling to find a job or employment, will have no income, meaning that the distribution of wealth will become less equal. However the overall economy will become more efficient, because people on government benefits will have a bigger incentive to go and find a job. The change in legislation is one that increases the efficiency of the economy but reduces equality in wealth.
Work Step by Step
The incentives of people on welfare to find employment are low, if they keep getting a check because they get money without having to put in a lot of effort. When they loose that welfare check they get more proactive in searching for employment, since they don’t have income anymore.
