Why Do Governments Tend to Run Programs That Help the Poor

question 154

Essay

Why do governments tend to run programs that help the poor?

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Definitions:

Socially Optimal

A situation in which resources are allocated in the most efficient manner from the perspective of society as a whole.

Subsidize

Financial support extended by a government or organization to lower the production costs or price of goods and services, making them more accessible to the public.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's price.

Taxed

The act of imposing financial charges on individuals or entities by a governmental organization in order to fund public spending.