POVERTY AND GOVERNMENT POLICY
1) Unfortunately countries which are relatively poor spend lower fraction
of their gdp behind social welfare, compared to richer countries.
2) Giving free money to the poor, contrary to widely held belief, does not
make them lazy or work less. This has been shown in empirical research.
Actually, when government redistributes some of its tax money to the
poor, it makes them more productive. They become less anxious about
their survival and feel motivated to work more and earn more.
( Based on a lecture by Abhijeet Bannerjee,a nobel Lauriate )
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