Oh, and there's the deadweight loss of those who
would qualify for a benefit (under law) but fail either to jump through the proper bureaucratic hoops, or who
do hoop-jump, but are still denied benefits, whether through bureaucratic error, inefficiency, corruption, or other reasons.
TFA describes the first circumstance.
Patio11 has noted that the optimum level of fraud is non-zero, a point picked up by Cory Doctorow as well:
Patio11: <https://www.bitsaboutmoney.com/archive/optimal-amount-of-fra...> (HN discussion: <https://news.ycombinator.com/item?id=38905889>).
Doctorow: <https://doctorow.medium.com/https-pluralistic-net-2025-04-24...>
Means-tested benefits are something you really want to think through before advocating. Gradient-benefits or sliding-scale benefits are forms of means testing.
I don't know if there's well-developed theory of when means-testing should or shouldn't be applied. There are some surprising arguments from surprising positions (a quick glance at the beginning of this National Affairs article, from a conservative position, is against means-testing, though it's also critical of social welfare programmes generally: <https://www.nationalaffairs.com/publications/detail/means-te...>).
I'd suggest that means-testing / sliding scale works better or is more appropriate where:
- It's applied locally rather than globally, to small populations in regular contact and where even eyeball assessments are likely roughly accurate.
- Where resources and/or services offered are limited.
Provision of sliding-scale services (healthcare, dental, vision, legal assistance) often falls under such cases. School lunches might, but the risks of abuse and long-term community harm are high.