17Income Distribution and Welfare Programs（课件）- 《财政与金融》同步教学（人民大学·第五版）

17 17.1 Facts on Income Distribution in the United States 17.2 Welfare Policy in the United States 17.3 The Moral Hazard Costs of Welfare Policy 17.4 Reducing the Moral Hazard of Welfare 17.5 Conclusion Income Distribution and Welfare Programs 1 of 45 1 17 Introduction: Differences in Life Expectancy The last week of April 2015, was marked by several weeks of violence in Baltimore, Maryland. Sparked by the death of minority prisoner Freddie Gray while in custody of the police, the protests resulted in about 113 police injuries, 486 arrests, and an estimated $9 million in damage to businesses. But while the death of Freddie Gray may have incited this violence, the larger cause may have been the astounding level of inequality in the city of Baltimore. Even in neighborhoods only several miles apart, life circumstances in Baltimore are dramatically different. of 45 C H A P T E R 1 7 ■ I N C O M E D I S T R I B U T I O N A N D W E L F A R E P R O G R A M S 2 17 Introduction: Differences in Life Expectancy The vast differences across close neighborhoods is immediately apparent. of 45 C H A P T E R 1 7 ■ I N C O M E D I S T R I B U T I O N A N D W E L F A R E P R O G R A M S 3 17 Introduction: Differences in Life Expectancy In Freddie Gray’s neighborhood of Sandtown-Winchester, the average life expectancy is 67 years; just 3 miles away in the wealthy Baltimore neighborhood of Roland Park, life expectancy averages 84 years. The life expectancy in Freddie Gray’s neighborhood is well below that in North Korea, one of the poorest countries in the world—and at about the same level as the U.S. average in 1948. This is not an isolated example: 15 Baltimore neighborhoods have a life expectancy below that of North Korea. This enormous discrepancy represents huge underlying differences in economic resources in these different neighborhoods. of 45 C H A P T E R 1 7 ■ I N C O M E D I S T R I B U T I O N A N D W E L F A R E P R O G R A M S 4 17 I