Concluding Remarks

Mohammad Ashraf ()

Chapter Chapter 9 in Formal and Informal Social Safety Nets, 2014, pp 193-195 from Palgrave Macmillan

Abstract: Abstract Just as there is no pride in adhering to the ideas that have been proven wrong, there is no wisdom in maintaining institutions that do not meet the needs of changing ontological realities. In this spirit I have proposed in this book that formal social safety nets should be provided by the government and financed by taxes. Given that a society needs social safety nets, the question is how to provide these safety nets in a manner that not only preserves human dignity but also serves the intended purpose in the most efficient manner possible. I have argued in this book that informal social safety nets, organized or casual, serve their purpose up to a point. And in the United States, as in any other country, they did. As populations increase and economies grow, in order to take advantage of expanded set of possibilities, individuals leave their families and friends. Informal social safety nets no longer remain viable. Going beyond a certain point on the economic growth and development trajectories requires the role of government. I have argued that, as an example, we should look to the modern-day monetary system and compare it with the barter system. Barter system served its purpose when economies were small and there were only a few trades. In a modern economy with its almost unimaginable complexity, barter system stops being viable; a well-functioning monetary system and a legal tender are needed. Along the same lines, formal social safety nets financed by taxes are needed in today’s societies.

Keywords: Income Inequality; Human Dignity; Political Landscape; Income Mobility; Legal Tender (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-38874-2_9

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DOI: 10.1057/9781137388742_9

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