One third of deaths are due to poverty-related causes. In 2001, 1.1 billion people had consumption levels below US$1 a day and 2.7 billion lived on less than US$2 a day. 800 million people go to bed hungry every day. These are just a few statistics on how poverty is raging in today's world. Therefore, governments of countries with such people suffering, have a duty and responsibility to bring them out of their poverty stricken states. In many cases, governments choose the method of subsidizing the poor communities. However, is this the right method? Should the leaders of a nation grant financial aid to the poor? Will this lead them out of poverty?Statistics have shown that the tried and tested way of relieving the financial burdens of the poor, providing subsidies is the most efficient means to redistribute wealth within its borders and insure stability. Poor communities, especially when they are concentrated in large numbers, provide a threat to the social stability of a nation.
They are discontented with their poor standards of living and as a result, tend to create unrest in a country through political and social revolts. Providing them with subsidies, like housing subsidies or medical subsidies, would improve their standards of living and thus create a sense of equality among the people by bridging the financial disparity between the rich and poor of the society. By using subsidies, it would make them feel that there are equal chances and opportunities for everyone, and thus the people would be generally satisfied. Therefore, providing poor communities with subsidies serves as a way to settle unrest and dissatisfaction among the poor, to ensure peace in a country by preventing rebellions and uprisings.
Furthermore, subsidies also help to solve the problems that poor communities pose to the society. For example,