Social Welfare
Why would increasing the government spending on social welfare hurt the economy? I always thought that a major portion of the economy was public (government) spending. So why would an increase in that cause my economy rating to go down?
Because many people wrongly assume that a free market is always good for the economy/freedom/whatever. The logic being that because you are funding welfare from taxation business and individuals do not have as much money, business is not able to compete with foreign rivals on equal grounds, cannot afford to employ as many, people cannot spend as much etc etc.
Why would increasing the government spending on social welfare hurt the economy? I always thought that a major portion of the economy was public (government) spending. So why would an increase in that cause my economy rating to go down?
It would hurt the economy. It pays people who are not working, and therefore, not doing anything in return. In essence, it rewards laziness.
Why would increasing the government spending on social welfare hurt the economy? I always thought that a major portion of the economy was public (government) spending. So why would an increase in that cause my economy rating to go down?
It would hurt the economy. It pays people who are not working, and therefore, not doing anything in return. In essence, it rewards laziness.
Welfare does not = unemployment benefit. It includes many things, like a health service, enforcing minimum standards of living etc. These things allow those who would otherwise be left out on the streets to die to become productive members of society. The same applies to the unemployed, if they are not helped then they will never be able to contribute to society.