Question

Analyze the impact that increasing number of social grants may have on the unemployment rate

Answer 1

Social grants are given in a developing economy for the welfare of the small, backward and marginal groups. The concrete impacts of such social grants are-

1) Social grants in sort of food subsidy, LPG support, cash grant which benefit the poor to come out of their poverty and help them subsist basic life necessities.

2) With the basic necessity of food which is needed to be fulfilled, a person can consider to go out and work and earn wages, and hence leads to the progress of his or her family. This points to more employment and diminishes employment rates.

3) Free education grant, particularly for poor children permit them to get instructed and work to earn wages. Hence, unemployment is reduced.