1.   For the latter system greatly reduces the incentive to export and leads to a progressive worsening of the balance of payments.

2.   Comprehensive state welfare also induces dependency, reduces incentives to work, and blunts initiative and enterprise.

3.   Bankers deny that it also reduces the incentive for price competition, but it probably does.

4.   A falling dollar reduces the incentive for investors to seek higher yielding investments overseas.

5.   A strong yen reduces the incentive for investors to seek higher yielding investments overseas.

6.   But, as Europe recovers, there is a risk that cyclical declines in budget deficits and unemployment will reduce the incentive to take tough measures.

7.   By banning re-election, the system reduced the incentive to break away.

8.   Cavallo had argued that a lower rate of taxation would lead to higher revenues as it would spur economic activity and reduce incentives for evasion.

9.   Cattle markets are rising as corn prices surge, reducing the incentive for feedlots to increase production.