“Some argue that redistribution to the poor is social insurance that protects all of us from misfortune. What’s wrong with social insurance where the unfortunate receive payouts? Nothing. The problem, of course, is creating insurance with payouts suitable for a population with high incomes and then applying it to a population only able to produce low incomes. In that case, transfer payments masquerade as insurance. Insurance is only insurance if the demographics covered by the insurance can afford the true cost of the premiums.”
Excerpt From: Conard, Edward. “Unintended Consequences.” Penguin Group, USA, 2012-04-25. iBooks.
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