In a typed essay about 1,000 words in length please discuss the following quotation: “In the early 1970s a presidential candidate…

In a typed essay about 1,000 words in length please discuss the following quotation: “In the early 1970s a presidential candidate proposed that every family in the United States should receive a grant of a certain size (assume for our purposes $5,000) each year regardless of their financial circumstances. To pay for this program the average tax rate on labor income* would have had to increase from 20 to 25 percent.” Using diagrams where desirable discuss and analyze the policy described in this quotation. Discuss how typical workers’ labor force participation behavior and work hours supplied would differ before and after the change in policy. Also consider the typical non-labor force participant’s labor supply behavior prior to and following the change in policy. Finally, speculate, using evidence from the text and elsewhere, how the effects of the change would differ for different demographic and other population sub-groups such as men age 25 to 54, women age 25 to 54, older workers age 55 to 64 and so on. *For the purposes of this assignment please assume that this tax is a proportional tax with no progression either before or after the proposed change.