Need this question answered ASAP please

[Advait Halve]

The changing fate of the Philippines
Three decades ago the Philippines was one of the richest Asian economies. Its slower growth
rate, however, caused it to fall behind its neighbours. Its position may now be changing. In 2007
its annual economic growth rate rose to 7.3%, its highest rate for 31 years. Its annual economic
growth rate fell to 4.6% in 2008 but, nevertheless, it experienced positive economic growth during
a period of global recession (economic downturn).
One of the reasons why the economy of the Philippines performed better than many other
economies was its government’s increased spending on infrastructure and social services.
Investment still needs to increase to improve the country’s relatively low labour productivity, and
more effective government policy measures are needed to reduce poverty. Indeed, the number of
people in the Philippines living below the poverty line has risen to nearly 4 million in recent years.
The government is aiming to raise its country’s income relative to its Asian neighbours.
It has considered subsidising house-building to reduce poverty.
The question raised based on the passage is:
Explain how a government subsidising house-building may reduce poverty.

 

[ppaayas]

Dear Advaite,
Do you know that building a house is a major investment for most people in LEDC'S, thus when this is subsidized, people can have more of their savings unused and also have a house. It will also reduce the people costs of rent, which is a great expenditure when one has no house. In the long run it is a good way of eradicating poverty. I couldn't help you more, hope what I said makes sense.