How Behavioral Economics Theory And The Neoclassical Model...

Do some Social welfare programs perversely harm in the long run to the very people it is intended to help? In the United States, Social welfare or Welfare system is a way the Federal Government, and state governments provide assistance to individuals and families through programs such as health care, food stamps, unemployment compensation, housing assistance and child care assistance. Social programs are a broad collection of many programs, with corresponding mandates and complicated matters; it has poorly managed rules about eligibility, benefit level and subject to fraud, abuse and rising expenditure and moral hazard. From economist point of view, many scholars agreed welfare expenditure is one of the causes of the increasing debt in the nation’s budget deficit. Although it is not very significant if compared other programs, like Defense, which is about 18% of the 2014 GDP. The goal of this paper is to examine how Behavioral Economics Theory and the Neoclassical Model of La bor Supply undermine some of Welfare programs, since their negative effect greater than the positive effect, and this could get worst in the long run. It is argued that the size or transfer programs are responsible for a decline an economic performance, and economic growth directly or indirectly, since poor people who are mainly the workforce are more irrational and inclined to make bad choices. This applies especially to social transfer expenditure like social security, social assistance, andShow MoreRelatedContemporary Issues in Management Accounting211377 Words   |  846 Pagesilluminate practice and to provide ways of improving it. Although always appealing to his economic understandings, he has been open to a wide variety of other ideas, recognizing their intellectual strengths and capabilities rather than making artificial distinctions between what is acceptable and what is not. He also has contributed widely to the accounting literature, taking forward the British traditio n of economic theorizing in financial accounting as well as being a constant source of creative thinking