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Only if the government wants the economy to remain a subsistence economy forever. Governments cannot progress economic development and all forms of welfare reduce it. I agree that there is always a role for welfare to alleviate the worst inequality, but only the extremes. Otherwise, you are condemming future generations to continued subsistence or worse, since if the government provides everything, then people don't even have an incentive to work to produce the goods necessary to support a subsistence standard of living.

2006-11-06 11:17:59 · answer #1 · answered by eco101 3 · 0 0

The provision of food clothing and shelter in such economies should be provided by government only in cases of absolute necessity and then only temporarily. Governments should strive to develop the productive capacity of the economy whether by way of mobilizing savings and investment or by attracting some measure of foreign capital so that the people can be gainfully employed, have meaningful existence, and feed, clothe and shelter themselves.

2006-11-06 17:33:36 · answer #2 · answered by Einmann 4 · 0 0

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