chapter  6
23 Pages

State Benefits: The Inefficiencies of Targeting

Although money incomes are scarcely offset by community benefi ts and maldistribution is intensifi ed by the pattern of enterprise benefi ts, one might hope that state benefi ts would go some way to offset the inequalities. This chapter is about the components broadly depicted as state benefi ts, which include income provided by federal, state and local authorities. The income that any individual might receive from the state includes universal benefi ts,that is, those provided to every legal resident; insurance benefi ts, that is, those provided if somebody has paid contributions; means-tested benefi ts; other selective, conditional benefi ts; and, discretionary benefi ts, that is, those paid at the discretion of politicians and/or bureaucrats.