
Lecture 16: Redistribution and Welfare Policy
Jonathan Gruber, teaching MIT's 14.41 Public Finance and Public Policy in Fall 2024, lectures on how governments redistribute income and design welfare programs. He works through the economic case for redistribution, the tradeoffs between reducing inequality and preserving work incentives, and how different transfer programs are structured to balance those goals. The lecture covers measures of inequality and poverty, the logic behind means-tested benefits, and the efficiency costs that arise when aid phases out as recipients earn more. Gruber draws on U.S. social welfare programs to illustrate how policy design choices affect who receives support and how much they keep. Running seventy-eight minutes, this is a full class session with slides and direct engagement with students, aimed at giving a rigorous public finance treatment of a topic usually discussed only in political terms.