Working More to Earn Less | Why the Poor Stay Poor

You may have heard the term “poverty trap” – the notion that the poor are stuck at the bottom. What if someone told you that our welfare system exacerbates this cycle by punishing the poor for working more? Prof. Sean Mulholland argues that this is happening every day. Well-intentioned welfare programs drastically decrease benefits at certain income thresholds—which in effect can make a breadwinner and his/her family worse off when they start earning more. Sound absurd? That’s because it is.

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