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In part,the increase in the labor force participation rate in the United States over the last 50 years can be attributed to
Distortionary Tax
A tax that causes people to alter their behavior and make different economic decisions than they would in a free market, potentially leading to inefficiency.
Efficiency
The extent to which resources are utilized optimally to achieve desired outcomes with minimum waste or effort.
Second Best
A concept in economics that suggests if all optimal conditions cannot be satisfied, the second-best option should be pursued.
Distortionary Tax
Taxes that cause people to alter their behavior in a way that distorts the allocation of resources from their most efficient uses.
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