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    Unemployment Benefits, Taxation, and Allocation

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    Please explain the following ideas:

    1. When the government tries to cut the economic pie into more equal slices, the pie gets smaller
    2. Thorough background checks must be done on individuals availing unemployment benefits
    3. On the other hand, increasing the tax for gasoline will cause people to live closer to where they work

    © BrainMass Inc. brainmass.com December 24, 2021, 11:06 pm ad1c9bdddf
    https://brainmass.com/business/business-management/unemployment-benefits-taxation-allocation-537445

    SOLUTION This solution is FREE courtesy of BrainMass!

    1. "When the government tries to cut the economic pie into more equal slices, the pie gets smaller". This is a critique of the welfare system, as you cannot treat everyone in the economy in the same way. Those who are hard working and are contributing significantly to production must be rewarded accordingly. Those who contribute less must be given less. The 'welfare system' ensures that even those who do not contribute (the unemployed) are given incentives through unemployment benefits. The welfare system treats everyone equally but not proportionately. Cutting the economic pie equally among the employed and unemployed significantly reduces the incentives to those employed.

    2. This is necessary because unemployment benefits are abused and misused. An individual can received unemployment benefits even if he/she has work and is given regular salary. They could circumvent the law by not reporting to authorities that they are working and are earning. This is reason why the State of Georgia is keeping a close watch on violators of unemployment benefits.

    3. Increasing the tax for gasoline will definitely result to hike in the price of gasoline. With the increase in the price of gasoline, the tendency of the consumers is to buy cars that are not gas guzzlers. Also, it is necessary during high gasoline prices to "live closer to where your work" because the closer you are to home, the less consumption on gasoline. In fact, if your workplace is "very close" to your home you can just walk. In this manner, you can save on fuel by not using your car.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 11:06 pm ad1c9bdddf>
    https://brainmass.com/business/business-management/unemployment-benefits-taxation-allocation-537445

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