To say that government sometimes functions as a "transfer mechanism," means that government sometimes

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When government functions as a transfer mechanism, it often takes from one group (often through taxation) and gives to another group. This can be seen with programs such as food stamps, Medicaid, and Social Security. The government takes from taxpayers and gives to those in need. This transfer can be controversial, as not everyone agrees on who should receive government assistance and how much.

To Say That Government Sometimes Functions as a "Transfer Mechanism