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The sizes also moves to citizens in a hot kind. Very much the other way - the income
There is that people make and earn, giving the goods and
Services, for which consumers are ready to pay.
The tax bearer, and the addressee of a transfer. In process of increase in taxes,
Transfers necessary for financing, at tax bearers vanishes
Any desire to make and earn and, on the contrary, stimulus are created
To put up money in less effective, but not taxable, kinds
Activity. Someone prefers to leave official economy and
To be engaged in barter or other inefficient forms of the economic
Activity. The stimulus to earning money and at the addressee decreases
Transfer as its size decreases with growth of incomes. Such
In the image, neither tax bearers, nor addressees of transfers in this situation
Will not make and earn it is so much, how much could, not be
Transfer programs. Besides, redistribution of the income by politicians
Encourages people to spend more time for a policy and less - on
Manufacture. All these factors constrain ' economic growth and conduct to
To falling of well-being and those to whom transfers are intended, and all
Secondly, struggle for transfers can reduce the total considerably
Benefits of their addressees. Not to ruin the budget, the authorities are compelled
To establish criteria for definition of addressees of transfers and others
Political blessings. Usually from the addressee it is required, that it something
Owned, either something did, or something from itself represented. However,
As soon as the criterion is established, people start to change behaviour,
To catch in the pocket easy state money or privileges.
Thus pure benefit from transfers falls.
Told above it is possible to illustrate by means of a following example.
Let's assume, the government has decided to give out between 9 o'clock in the morning and 5 hours
Evenings on a 50-dollar denomination to everyone who will want to defend turn at
Window of the cashier in the Canadian Bank. Turns will be long, but a question in that
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