Overview of the Problem According to Allard …show more content…
According to the proponents of the welfare reforms signed by President Bill Clinton, the cash benefits that were given to the unemployed population discouraged employment in the country (Iceland, 2013). Many people who received these government benefits were satisfied and did not work to seek employment. In addition, the government programs that helped unemployed individuals increased and contributed to a budget deficit, something which was a burden to the government and the taxpayers.
Pros and Cons of the Current Policy The current policy encourages individuals to seek employment. Those who engage in these activities will receive various incentives and financial assistance. These incentives, however, are subject to some limitations. The reduction of financial aid to the unemployed population can positively impact the unemployment rate by encouraging individuals to actively search for employment to qualify for various government-provided financial benefits and incentives. The other advantage of the current program is that it can reduce government expenditures and, by extension, the deficit. The government can also reduce its budget deficit through an increase in tax revenues, something that will occur as a result of increased employment throughout the country. The individuals who obtain a job will create extra revenue for the government that can be used to fund other projects in the