Project 7. Measuring income. What is the “income’’ of a household? Household income may determine eligibility for government programs that assist “low-income’’ people. Income statistics also have political effects. Political conservatives often argue that government data overstate how many people are poor because the data include only money income, leaving out the value of food stamps and subsidized housing. Political liberals reply that the government should measure money income so it can see how many people need help.

You are on the staff of a member of Congress who is considering new welfare legislation. Write an exact definition of “income’’ for the purpose of determining which households are eligible for welfare. A short essay will be needed. Will you include nonmoney income such as the value of food stamps or subsidized housing? Will you allow deductions for the cost of child care needed to permit the parent to work? What about assets that are worth a lot but do not produce income, such as a house?