The term is, perhaps, less often used presently than it was during the 1960s to 1980s but the concept still motivates many economic actions by governments.
Examples include in-kind transfers such as the provision of food stamps to assist nutrition, the delivery of health services to improve quality of life and reduce morbidity, and subsidized housing and education.
[2] It is sometimes suggested that society in general may be in a better position to determine what individuals need, since individuals might act in a fashion which is deemed not to be in their own interest by others (for example, using welfare payments to buy alcohol instead of nutritious food).
However, merit and demerit goods can be defined in a different manner without reference to externalities.
Arguments about the irrational behavior of welfare receivers are often criticised for being paternalistic, often by those who would like to reduce to a minimum economic activity by government.