alt Hacker NewsEfficiency is why things continue to work as fewer people work. Social programs, bank account, etc are just an abstraction you need a surplus or the only thing that changes is who starves.
Efficiency is why things continue to work as fewer people work. Social programs, bank account, etc are just an abstraction you need a surplus or the only thing that changes is who starves.
Social programs often compensate for massive distortion in the economy. For example, SNAP benefits both the poor and the businesses where SNAP funds is spent on, but that's because a lot of unearned income goes to landowners, while preventing people from employing laborers and starting businesses. SNAP merely ameliorate a situation that shouldn't had arise in the first place.
So, yes, reasons other than efficiency explain why people aren't working, as well why there are still poor people.