The most important duty of the government of a country is to do the activities which brings welfare for a country. There a few countries, where people are not doing any work receives an amount of money from the executive. It has significant effect over the population. Here, I intend to discuss the impact and conclude that this idea will share both positive and negative impact.
To begin with, day by day the growth of unemployment rate is increasing which causes a range of problems that results to hinders for the growth of a country. At that time, providing a financial security may lessen the problem in certain ways. For example, if an unoccupied gets a money support, then she/he may have the economic stability and get enough time to enhance his/her qualifications for getting a job. Overall, it may work like a job search support. As a result, poverty may alleviate from the society as well as the country. Finally, the main goal of government, welfare of the state will happen.
Though it has some advantages, the drawbacks are also high. Primarily, the incident may create a dependency syndrome. By getting money without doing any work, may reduce the participation of work force. This lead to an increase in the jobless group. It may also seen that they are no taking any job incentives. In addition, supplying salaries without getting any service, may bring a financial burden for the administration. Subsequently, exploitation of moral value will lead to social cohesion.
To conclude, after discussing the fact, we can say that, if we properly use the service except doing moral hazards, government may reduce the economic inequality and boost the economy. Although the challenges are very hard, providing financial security will promote state welfare.