Monday, October 18, 2010

How to Help Poor People

The best thing anyone can do is make a poor person self-sufficient and/or independent.

Welfare and charity do not make a poor person self-sufficient because they regard the poor person as a passive recipient of benefits rather than someone with under-utilized skills.

A job allows a person to become self-sufficient.

To give someone a job, corporations and small businesses must grow and make higher profits so they can afford to expand.

For businesses to grow and make higher profits, they must sell more products.

Therefore, the goals of any fiscal policy ought to be 1) increase public demand for products by ensuring a fluid money supply; and 2) maintain the purchasing power of the currency.

The Federal Reserve's monetary policy seeks to promote "maximum" sustainable output and employment and to promote "stable" prices. More here.

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