ABSTRACT
Why study wealth policy when poverty is the problem that needs to be solved? This chapter shows how well-designed fiscal policy with regards to wealth accumulation can have a substantial impact on all socioeconomic groups, and may ultimately do more to lift populations out of poverty than transfers and other income-based assistance can. If ill-designed, however, wealth policy may redistribute resources from low-wealth to high-wealth populations, or create inefficiency by redirecting resources to lower-valued uses in the economy. Sherraden (1991, 148) argues for a complete redesign of welfare 680policy to focus on asset accumulation, not income support for the poor:
