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Macquarie University

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Essay / Project

Application 2
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Application 2

ECON203 - Microeconomic Analysis

4 Pages Macquarie University Essay / Project Year Uploaded: 2019

This is an essay for ECON203 which received a HD. The essay discusses wt are the economic justifications for distributing welfare payments via the cashless debit card? How do they deal with the standard economic idea (see pp120-122 in Perloff) that payment in kind is inferior in welfare terms to payment in cash? Although the economic arguments for welfare quarantining are mostly consequentialist in nature, there are also deontological aspects relating to a supposed duty for welfare payments to be spent responsibly, and the right of the State to dictate the expenditure of public funds. How do these square with other widely-held ideas about individual autonomy and freedom, and the necessity of keeping the State out of the private sphere? Taking into account the economic arguments, and the considerations relating to rights, duties and freedom, is income management via the cashless debit card justifiable on balance or not? If so, should it be applied to all recipients of government payments (e.g. pensioners, students)? If not, why not?

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