Final answer:
Government agencies like the Social Security Administration provide income support through SSDI or SSI programs to individuals in need. For a working individual like Jonathan, welfare programs are adjusted based on income earned to encourage work while providing financial support. Policy changes in welfare can affect the balance between work incentive and government dependency.
Step-by-step explanation:
To address the question posed, a government agency such as the Social Security Administration (SSA) or like-minded welfare programs might provide Mr. Smith with income support. Specifically, if Mr. Smith becomes unable to work due to a disability, the SSA offers Social Security Disability Insurance (SSDI) benefits, which allow him to meet personal needs and live independently. Additionally, Supplemental Security Income (SSI) is available for individuals who have limited income and resources. For individuals like Jonathan, who is working as a server and earning a modest income while caring for a child, welfare programs provide a safety net. These programs are often designed to encourage work while offering financial assistance.
To illustrate Jonathan's options in a welfare system that reduces benefits by a dollar for every dollar earned, we can create a detailed table. If Jonathan decides to work for 1,500 hours a year at $6 per hour, he would earn $9,000, and his welfare benefit would diminish from $10,000 to $1,000, making his total income $10,000. In an alternate policy where benefits are reduced by only 30 cents for every dollar earned, Jonathan would retain a larger portion of the welfare benefit along with the income from work, potentially making employment more attractive and increasing his total income.
This discussion reveals the delicate balance between providing support, encouraging employment, and reducing dependency on government assistance. Determining the optimal welfare policy requires consideration of both the individual and societal impacts, as well as the balance between freedom and support that governments aim to achieve.