This policy has not lived up to the expectations for it. Members of the Dirigiste schools of thought believe that to achieve this requires that the government force their people to save more so that more can be invested. One way to do this is to raise taxes and invest the additional revenue. However, collecting taxes is more difficult in the LDCs than in the DCs. Unfortunately, many farmers reacted to this policy by reducing their output.
Money is created by the government to purchase resources.
Because the public buys less, fewer resources are devoted to producing consumer goods. After World War II, the concept of the low-level equilibrium trap was introduced. In the 1960s, many LDC governments set out to control population growth even though this policy was in conflict with religious and cultural values. Encouragement for this policy came from the DCs, which sometimes financed birth control programs. Sparsely-populated LDCs were not receptive to this policy.