Modeling Keynesian Consumption Function for Community Financial Education
In many urban cities in the US, transfer payment for public assistance helps put food on the table and provides shelter to thousands of families below the poverty line. Proponents against public assistance may argue that public assistance does not help make the recipients and their communities better off because such government spending has no multiplier effect. This paper argues that there is probably a multiplier effect that could emanate from public assistance if combined with basic financial education mentoring efforts from providers of public assistance or caseworkers. Modeling Keynesian Consumption Function for Community Financial Education demonstrates a basic teaching of the basics of Keynesian economics to Department of Social Service (DSS) caseworkers managing public assistance to help develop their financial education skills to become volunteer mentors to the communities they serve. Outcomes from the teaching were examined for correlation between financial education classes attended and financial education skills acquired by caseworkers. The results indicate a positive correlation in both variables. The implication of the outcomes on public assistance is succinctly discussed.
Keywords - Keynesian consumption function, financial education, caseworker mentoring.