What is the proper method to fight poverty in a society
A)Taxing the wealthy to raise living standards for the poor can potentially make everyone better off.
B)Eliminating taxes aimed at redistributing income will necessarily make rich people better off.
C)Government intervention can cause uneven distribution of the wealth.
D)Private markets can adequately provide charity programs to help the poor despite free-rider problems.

Question

Quizplus · Accepted Answer

Taxing the wealthy and redistributing the income can help raise living standards for the poor and potentially benefit everyone. This can be done through programs such as social welfare, education, and healthcare. However, it is important to ensure that these programs do not create disincentives for individuals to work and innovate.

Option B is incorrect because eliminating taxes aimed at redistributing income may actually widen the gap between rich and poor and negatively impact the living standards of the poor.

Option C is also incorrect because government intervention can be effective in reducing poverty if done correctly. It can provide essential services and create opportunities for those who are marginalized.

Option D is incorrect because private markets may not provide adequate charity programs for the poor, as they may not have a profit incentive to do so, leading to free-rider problems.

What Is the Proper Method to Fight Poverty in a Society