Select a type of transfer payment and analyze the pros and cons of the current system in the United States or abroad and how the the system could be improved.
Examples of transfer payments would be Social Security, Medicare, unemployment payments, welfare programs, etc. There are many more, so don't let this list limit you. You can write about almost any type of transfer payment you would like.
In writing the paper you must include the following areas:
Part 1: Use positive economics* to analyze the current situation.
Part 2: Use normative economics** to analyze the current situation. Do you believe the current situation comes down too much on the side of equity or efficiency? Explain.
Sample Solution
A transfer payment is a type of government expenditure that is not made in exchange for goods or services. These payments are typically used to provide assistance to individuals or groups who are unable to take care of themselves, such as unemployed people, disabled persons, retired seniors and low-income households.