Critical evaluation of food stamp program and describe the improvement in the households' well-being graphically.
Many economists argue that the food stamp program is an inefficient means to increase the well-being of low income families. They instead propose to give an equivalent cash subsidy. On the other hand, the advocates of the existing food stamp program argue that food stamps provide an incentive for low income households to increase their nutritional quality.
a. Carefully analyze both arguments: what is the improvement of households well-being under present food stamp program and the equivalent cash subsidy program. Show with graphs.
b. Critically evaluate the pros and cons of current food stamp program.