Taken as a whole, antipoverty programs may actually put a poor family in a position in which the family becomes worse off if its earnings rise.

Question

Quizplus · Accepted Answer

This phenomenon is known as the "welfare cliff." As a family's income rises, they may lose eligibility for certain benefits or tax credits, causing them to lose more in benefits than they gain in income. This can create a disincentive to work and earn more, as it would result in a net loss for the family.

Taken as a Whole, Antipoverty Programs May Actually Put a Poor