The lieutenant governor of South Carolina is taking heat for comparing people on government assistance to 'stray animals' and saying the government should stop 'feeding' welfare recipients who do not meet certain requirements because 'they breed.'
Aside from concerns about the Lt. Governor's wording, his point is correct. If monopolies are subsidized, more monopolies are created. If corn is subsidized, more corn is produced. If poor people are subsidized, or if their children are subsidized, the generation of more poor people is encouraged.
Bauer's comments are a direct application of the law of demand, and require no economic correction.
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