Some argue that Sweden's generous welfare benefits, which pay people who lose their jobs as much as 80 percent of previous incomes for three years, has resulted in too-high unemployment. This can be seen as an example of:

Question

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The argument suggests that the generous welfare benefits may disincentivize work, leading to higher unemployment, which can be seen as a government failure in maintaining a competitive labor market environment.

Some Argue That Sweden's Generous Welfare Benefits, Which Pay People