Answer to Question #214762 in Finance for judas

Question

critically discuss the effects of social grants on incomes and welfare?

Answer 1

Solution

Social grants play a critical role in reducing income inequality and poverty. This therefore improves status of households and improve status of recipients as there is certainity of income.

Social grants is mainly received by the poorest in the society and people living with disabilities. Increasing of grants increases levels of expenditure and contribute to declining of household income inequality.

In many countries experiencing high levels of poverty, social grants enable people to actively pursue jobs, search and take control or direct their future instead of being slaves to the circumstances in which they were born.