Question

What are the costs and consequences of providing the subsidies and welfare?

Answer 1

I believe the answer is: Welfare payments

Welfare is the total economic expense that the government must make in order to provide the programs to improve the quality of living of its citizens. This expense is taken by allocating the earning of one citizens to another through the tax payment.

Answer 2

The cost of welfare is different in different countries, but can amount to a big percentage of public spending, such as above 20 % in the UK.

The consequences can be very positive though, as poverty could otherwise lead to riots and violence, and the benefits of integrating the people in need into the society are big. On the other hand, too generous and easy to obtain support can lead to the fact that people would choose to stay on welfare rather than work.