Question

Transfer payments refer to funds that are transferred from one group in society to another group,

so these payments have no impact on the government budget deficit.

so these payments have no impact on the government debt.

so these payments are unfair to those who lose money in the transfer.

and these payments represent a growing share of U.S. federal outlays.

and these payments remain approximately constant over time.

Answer 1

In the U.S., transfer payments refers to payments made to individuals by the federal government . These payments occur through various social programs of the government such as unemployment benefits , food stamps etc . These payments are considered a redistribution of wealth to bridge the income and life standard gap in society .

So they cause budget deficit , impact debt , nobody loses money in transfer as it is done by government , these payments do not remain constant and change overtime as required .

Over the past several decades, federal investment spending has been going downward or showing a falling trend . But transfer payments — in cash or in kind to individuals or families — have steadily grown over time .

(and these payments represent a growing share of U.S. federal outlays.)