Subsidy Elimination and the Structure of the Government’s Relationship with the People
Date: December 28th , 2010
Source: Roozonline
Dr. Masoud Nili
Governments are political entities that have a lot of say when it comes to distribution of resources. One can tell what sector of the socio-economic spectrum a government is trying to favour by looking at what resources it makes available to what group. More often than not, governments target a certain socio-economic group by redistributing resources towards that group and hence providing them with beneficial economic opportunities. By evaluating the channels of resource redistribution, we can easily decipher from which socio-economic sector a government is driving most of its support.
We can draw the natural conclusion that by redistributing resources, governments tend to take … Continue Reading
