If everyone benefits from helping the poor,
A)government intervention cannot improve social well-being.
B)eliminating taxes aimed at redistributing income will make rich people better off.
C)taxing the wealthy to raise living standards of the poor can potentially make everyone better off.
D)private markets can adequately provide charity programs to help the poor, despite free-rider problems.

Question

Quizplus · Accepted Answer

If everyone benefits from helping the poor, it means that raising the living standards of the poor can potentially make everyone better off. Taxing the wealthy to redistribute income and provide basic necessities like education and healthcare to the poor will not only create a more equal society but also fuel economic growth as these individuals will become more productive members of society. Private markets may not be able to adequately provide these programs as there may be free-rider problems and a lack of incentive to invest in social welfare programs. Therefore, government intervention in the form of redistributive policies and social welfare programs might be necessary to improve social well-being. Eliminating taxes aimed at redistributing income will only make the rich better off and lead to more income inequality, which is not beneficial for anyone in the long run.

If Everyone Benefits from Helping the Poor