What have been the effects of foreign aid programs, such that virtually everyone was describing them as failures by the 1990’s? A negative effect according to edubirdie.com is Increase dependency-less economically developed countries (LEDCs) become more dependent on donor countries and become heavily dependent, which causes the economy the stay at equilibrium.” According to javatpoint.com, some other ones are “Exhaustion of Vital Resources. Has an impact on the domestic industry. Lopsided economic growth. The Dangers of Dumping. Reliance on foreign countries. Opposition to national defense. Economic planning and unpredictability. Legal inconsistency.”

Is “income inequality” a problem? According to Britannica, “income inequality, in economics, significant disparity in the distribution of income between individuals, groups, populations, social classes, or countries. Income inequality is a major dimension of social stratification and social class.” This can lead to things like political polarization and lower economic growth. Income inequality is a problem if it is used regularly.