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Do you believe that subsidized public programs reduce or increase recipients' incentive to work? Explain your...

Do you believe that subsidized public programs reduce or increase recipients' incentive to work? Explain your answer.
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Answer #1

I believe that subsidized public programs reduce the recipients incentive to work. It is due to the fact that person starts believing that government is always there to support them through such programs and provide them basic livelihood. This in-turn reduces their morale to work hard and earn for themselves. Also, the people start viewing subsidized rate as the real rate and not willing to pay excess amount. Such a mindset is very dangerous for the economic growth of the nation. So, government should focus on building capabilities rather than giving subsidized items through public programs.

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