00:01
Okay, so here we're talking about the welfare system and incentives to save, basically.
00:06
So i'm going to be talking very qualitatively, not talking about too many numbers in general.
00:12
So there's something that we call the welfare trap.
00:19
So welfare provides, it says in the question, income for people who are very poor.
00:25
But the problem is, as income increases, welfare tends to massively decrease.
00:35
So basically, the existence of the system disincentivizes, will decrease the incentive to save because of this basically fallacy where people think that they're going to be fine because welfare is there for them.
00:55
So it decreases incentive to save.
01:00
So that's a little bit about that...