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Attempts to remove the feedback loop

Countries have tried various ways to circumvent the problem. 

  • Some allow an overlap of benefits after finding a job, while others phase out benefits gradually as income increases.  These policies remove some financial incentives to work but the risk of the welfare trap is lower.
  • Other governments provide benefits like education, childcare or medical care equally across all their citizens.
  • Others proposed a universal basic income to all members of society. Additional wages would supplement the benefit.
10 days ago

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