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Welfare spending

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Is welfare spending effective in improving employment and productivity? Explain why or why not.

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This solution explains.welfare spending The sources used are also included in the solution.

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Welfare spending is an economic stimulus. It may take several forms like provision of housing, vouchers, or cash payments to the poor. Cash payments may be provided to the unemployed, the indigent, or the disabled. The eligibility for receiving welfare payments is decided by the government. Usually there are four goals of welfare spending. It is used to reduce income poverty, share tax burden equitably, reduce insecurity related to irregular and extraordinary expenditures, ...

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