Overcoming poverty and inequality: Myths and axioms

Aleksandrova O.A.

Abstract

The current economic crisis has produced a great deal of disproportionate inequality and relative poverty in the country, exerting a highly negative impact on its macroeconomic and demographic indicators. However, instead of effective income redistribution, there is a tendency to cut social spending. The article shows that some key postulates of this policy are nothing more than myths, long ago debunked by theory and practice. In addition, what is doubtful is the initial postulate about budget shortages in the country. Suggested is a list of measures that could contribute to the replenishment of budget or prevention of outflow of financial resources abroad.

Keywords

poverty, inequality, budget deficit, social spending, redistribution of income.

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