Many state and local governments support car ownership programs for the working poor as a means of raising their employment and income levels. Most welfare recipients live in central cities or rural areas, while most jobs are located in the suburbs. The cost of the cars to the programs is made up within a few months, as worker earnings replace welfare assistance. Promoting car ownership is superior to subsidizing the public transit system when all of the costs and benefits of private vehicles are considered. The opportunity costs of transportation constraints on the working poor relate to job opportunities, travel time, housing expenditures and shopping services.
