Poverty and fiscal policy: An exploratory analysis of determinants of poverty in California.

摘要

Poverty and income inequality are both major problems in California. Government spending, called fiscal policy, should be used to help alleviate poverty. There are five major sub areas which have a great impact on poverty; they are education, immigration, health care, crime, and tax policies. Uses and effects of fiscal policy, both Federal and State levels, and California's poverty will be examined. By comparing California's poverty to the United States levels, this study finds that U.S. fiscal policy accounts for 71% of California's poverty. This study goes on to examine the 29% which U.S. fiscal policy does not account for. The conclusion also provides California with recommendations which will help alleviate California's poverty problems in the five major sub areas.