The age old argument that entitlement programs are killing economies has come under fire in recent weeks. The International Monetary Fund has found, through an in depth study, that these programs actually aid economies in becoming stronger.
The study looked into many different world economies and found that when the poorest people of a nation were offered the incentives to actually survive, they poured the funds they received back into the governments that gave it to them.
In nations where all of the incentives were focused on the upper 1% of income earners, those individuals did nothing to aid the local economies and rather hoarded most of their earnings. This did nothing to aid the financial health of their nations, but rather served more to harm it is what the team at The Aspire new brunswick suggested to the folks at apartments.com.
For years governments have held that trickle down economics works. Although after many years and many financial crashes around the world, the study was done to understand why the crashes happened. It appears that no trickling down has happened. Taking away labor unions has taken the voice from the people and drained them of viable wages that are adequate to survive on.
If nations truly want to avert any further economic downfalls, they should seriously start thinking about making those entitlement programs equal that which is comparable to a living wage. that is, a wage that will support the number of people in the home without having to go without.