ECN 104 Lecture Notes - Lecture 18: Social Insurance, Market Basket, Gini Coefficient
24 Dec 2015
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Document Summary
Takes up large portion of gov spending. If everyone has equal income then lose incentive to work. Program to improve poverty and provide healthcare generate external benefits to society. Financial aid to: poor, unemployed, income for elderly, medical bills for ppl with expensive bills. Major rational lessen income inequality by helping those in need. Many disagree on how much of this we need. Suggest that low income should get money back system. Most commonly used criteria to measure poverty in canada: low income cut-offs (licos) Thresholds below which a household likely will devote too large a share of their income to necessities as compare to average family. Compare person/ family to average person/ family: low-income measure (lim) 50% of median adjust household income in which household size is taken into account: market basket measure (mbm) Low income based on specific basket of goods and service for a family with 2 adult and 2 children.
