The Safety Net

In most modern economies governments provide social programs to ensure a general welfare among citizens who are in poverty or who are unable to care for themselves. Economists will utilize a poverty threshold, or a number of dollars earned per year under a set amount, to determine who is eligible for services that are designed to assist those who are impoverished. Currently the poverty threshold in the United States for a family of 4 is approximately $23,000 per year. For those who earn less than the poverty threshold, services are typically available to combat malnutrition, disease, lack of shelter and etc. The services available from the government for those in poverty are considered in economics as a Safety Net.

There are several types of Safety Nets available in the United States today. The Welfare System is available to those who are in need. Commonly a hot political issue, welfare is available to take care of American citizens, as well as to keep crime down. Taxpayers contribute money to the government, which in turn pays out money to people who qualify for assistance.

There are other government Safety Net programs. Such programs include the Family Medical Leave - for Families with newborns and etc, Social Security - to provide cash payments to the elderly, Unemployment Insurance - for people who have lost their jobs to make ends meet temporarily, and Workers' Compensation Insurance - for those who are injured on the job and temporarily can not work. These programs are developed to assist people who are in need, during times of crisis.