New Economist points to a cool primer on the workings and effects of the ETIC as well as possible reforms to the program. I like the ETIC because it is a cash transfer to the poor instead of a transfer in the form of services, so the poor can decide how to spend their own money, and because the phase out range for benefits are much higher up on the income scale and much wider. I don’t care very much about the work inducing effects of the ETIC. I might change my thoughts on the ETIC (especially my indifference to the work inducing effects) if it were shown that a lot of poverty is due to high time-preference, which some people have suggested, because a high time-preference could arguably be called “bad” or “stupid,” although my individualist, subjectivist tendencies make me want to withhold judgment on high-time preference.
Pages
Blogroll
- Angry Bear
- Balkinization
- Cafe Hayek
- Coyote Blog
- Crooked Timber
- Dani Rodrik’s Blog
- EconLog
- EconTalk
- Environmental Economics
- Free Exchange
- Greg Mankiw’s Blog
- Knowledge Problem
- Marginal Revolution
- Megan McArdle
- New Economist
- Overcoming Bias
- The Becker-Posner Blog
- The Monkey Cage
- The Volokh Conspiracy
- Thinking Things Through
Especially Interesting Blogs
Resources
Archives
Statistics
- 9,350 hits

1 comment
Comments feed for this article
October 11, 2007 at 10:54 pm
The baby bond « Good Morning, Economics
[...] As I have noted before, I like redistributive programs that hand out cash instead of providing free or low cost services because I think that poor folks are able to decide how to use their assets better than outside observers. The ETIC also gives out cash as do food stamps to some extent, so the cash aspect not unique to the baby bond. The most important difference is that the baby bond would pay out only once and in a lump sum, whereas the ETIC pays out continuously and pays out more, the more the recipient works. One advantage to the baby bond could be that it acts as a substitute to credit. I have heard people suggest that the poor lack access to credit because it is difficult for them to prove they are credit worthy, even if they are, which is why many have lauded the emergence of the ’subprime’ credit market and payday loan companies (the New Economist showcased an interesting paper on that). If this is the logic though, perhaps it would be better to have a program which guarentee’s a portion of loans to the poor. [...]