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The Myth of Welfare Dependency

In most countries, rich and poor people alike worry that social programs for low-income households end up weakening work incentives and create an underclass of indigents. In fact, recent research suggests just the opposite: the longer families receive stable and predictable support, the better they and their children do.

CAMBRIDGE – Social safety nets worldwide routinely come under attack by critics wielding an argument that is as misleading as it is familiar. Measures such as subsidized health insurance, food and nutrition programs, and targeted cash payments to the poor, it is said, incentivize idleness, encourage freeloading, and create a culture of dependency. In response, policymakers cut funding, allow inflation to erode benefits, and make social programs harder for people to access.

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