"Why should the central government be in the business of giving unconditional grants to states and localities? The usual response is that such grants can equalize the income distribution. It is not clear that this argument stands up under scrutiny. Even if a goal of public policy is to help poor people, it does not follow that the best way to do so is to help poor communities. After all, the chances that a community with a low average income will probably have some relatively rich members and vice versa. If the goal is to help the poor, why not give them the money directly?"

“The First Welfare Theorem holds only if all consumers and firms are price takers. If some individuals or firms are price makers , then the allocation of resources will generally be inefficient.”

“It may be worthwhile to spend a few million dollars to determine the efficacy of program that would involve spending billions of dollars.”

“Peoples views on how the government should conduct its financial operations are heavily influenced by their political philosophies.”

“The mere ability to postpone taxes may not seem all that important, but its consequences are enormous.”

“Dioxin is the outcome of the operations of markets. Does this mean that having dioxin in the environment is efficient?”

“Welfare" in the United States is a patchwork of more than 80 programs that provide benefits primarily to low-income individuals. These programs are means tested - only individuals whose financial resources fall below a certain level can receive benefits.”