Blog entry by Charles Biney
COUNTERINTUITIVENESS IN PRACTICE
- Friday, 8 July 2022, 1:09 PM
Expanding the welfare system to reduce the number of poor families in a community may, counterintuitively, increase their numbers. Improvement of welfare usually requires additional resources, which means an increase in taxes.
Excessive taxation may push the wealthy and many businesses to move out of the region, diluting the tax base and reducing revenues. Moreover, a more attractive welfare system will attract higher numbers of the needy to the region. It may also reduce the incentive to work, adding the burden of unemployment to an already overloaded system. Increased cost, coupled with reduced revenue, becomes a recipe for disaster.
From: Systems Thinking: Managing Chaos and Complexity
A Platform for Designing Business Architecture Third EDITION
Modified: Friday, 8 July 2022, 1:22 PM
Anyone in the world