Monday, March 9, 2009

Policy responses

Many governments have initiated programs with the proclaimed intention of assisting those who may be considered impoverished or working poor. Much debate is centered upon the efficacy of such programs.



In the United States, fiscal conservatives tend to argue in favor of the approaches recommended by Trickle-down economics, in which stimulation of the investment sector is assumed to lead to increased job opportunities and a better economy.
Examples of conservative measures include lowering taxes and reducing governmental regulation of business and trade. Fiscal progressives tend toward a more direct approach, usually with increased taxes and regulation.


The government funds social welfare programs like food stamps and vouchers, subsidized housing, meal plans, and healthcare, and regulating wages, or by helping the working poor become more competitive in the labor market, through such measures as job training programs, low-interest student loans, and small business loans.

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