Answer
The allocation of government money does affect how many people are affected by poverty. The largest category of government spending (in 2011) was income security, which includes transfer payments. These transfer payments include Social Security for the disabled and elderly, unemployment insurance programs, and welfare payments. The second largest category (in 2011) was for health programs such as Medicare and Medicaid.
Work Step by Step
The elderly are recipients of both income security programs (via Social Security) and health programs (via Medicare). The children of families in poverty are recipients of welfare payments and Medicaid (and possibly unemployment insurance programs).
