1.) The “benefit principle” has been used to justify progressive income taxation. What is the benefit principle? Are there any problems with it? If so, what?
The benefit principle is the idea that government spending should be met by the people who receive them. In other words, everyone who receives government spending, should contribute towards it.
One of the problems with the benefit principle is the Free-rider problem. For each individual can lower his tax cost by under reporting his benefits derived from the public good or service.
2.) What is the Washington Monument Syndrome?
The Washington Monument syndrome, also known as the Mount Rushmore Syndrome or the firemen first principle, is a term used to describe the phenomenon of government agencies in the United States cutting the most visible or appreciated service provided by the government when faced with budget cuts.
3.) What is the primary problem facing a policymaker who is trying to design a program to benefit people in unfortunate circumstances? (Lesson 43 will help here.)
The primary problem or the most obvious problem when facing a policymaker who is trying to design a program to benefit people in unfortunate circumstances, is that it’s physically and mentally impossible. You can’t design something for a person to immediately qualify for a certain job. Anybody is capable if they are willing to put in their best effort and strongly pursue their goals and desires.
Imagine creating a program to help alcoholics to stop drinking or smoking, chances are, their addictions would be so strong they would be causing themselves to do more of the drinking/smoking than before doing the program. It takes more than some program to help those alcoholics discontinue their addictions.
4.) In practice, what have been some of the outcomes — intended or unintended — of anti-poverty programs?
As a goal these programs were supposed to reduce the poverty rate. I personally think there’s nothing wrong with trying out different ways to make things better in the world, knowing that you can’t fix everything, but I could still do something. However, these programs have increased the poverty rate instead of decreasing. The programs have proved to be ineffective causing the rate to rise severely.
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