The Danger of Social Assistance with a Strong Political Flavor

Although the market remains indifferent, politically motivated electoral social assistance can incite public anger.

Yopie Hidayat

January 22, 2024

FOR investors in the financial market, the recent flow of social assistance (bansos) funds is favorable. The government’s injection of funds can serve as a stimulant to accelerate economic activity, fostering positive sentiments in the financial market and potentially boosting stock prices.

The bansos program’s funds quickly stimulate the economy by directly reaching households. Recipients get more purchasing power, resulti

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