Question

The U.N. World Food Program (WFP) is warning that upward of at least 14 million people could go hungry in Latin America as the coronavirus pandemic rages on, shuttering people in their homes, drying up work and crippling the economy. New projections released late Wednesday estimate a startling increase: Whereas 3.4 million experienced severe food insecurity in 2019, that number could more than quadruple this year in one of the world’s most vulnerable regions. U.N. food agency executive director David Beasley warned in April that an addition 130 million people could be “pushed to the brink of starvation” worldwide by the end of 2020. The impact of such a sharp rise in hunger could have far-reaching implications ranging from higher levels of chronic childhood malnutrition to security issues. The WFP is calling on nations to expand their social safety net to those who traditionally don’t qualify for aid. Many governments and international organizations have been stepping up, providing cash transfers and food deliveries, but are facing logistical and economic hurdles. In the view of food insecurity around the world particularly in Latin American economies, World Food Program suggests countries to expand their social safety net.

Discuss whether social safety net boosts the aggregate expenditure and leads economy to recover. Answer based on the paragraph.

Answer 1

Many people will be pushed to poverty and the vulnerable groups will be the most affected because of this pandemic. With no work and savings dried up, food insecurity is bound to increase. Social safety nets are a way of providing assistance to the vulnerable groups in the economy. Social safety nets not only have a significant positive impact on the health and food security but also on the ability to generate income. It is seen that when countries expand their social safety nets, these cash transfers will help generate incomes which will boost aggregate expenditures. As the expenditures increase, the economy will begin to recover as well. In these times, it is necessary that the governments remove any restrictions on cash transfers so that everyone is benefitted.