We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Higher Government Spending Must be Good for Growth - Essay Example

Comments (0)
Higher government spending must be good for growth. [Author] [Institution] Introduction: Government’s only aim is to work for social welfare and take care of all the needs and wants of its public (Folster and Henrekson 1520). Government spending is undertaken with an intention that it will boost country’s economic growth…
Download full paper
Higher Government Spending Must be Good for Growth
Read TextPreview

Extract of sample
Higher Government Spending Must be Good for Growth

Download file to see previous pages... That’s why this issue regarding government spending is important, if it’s not done properly, the country might face a serious financial crisis. Types of Government Spending There are numerous sources that enable the government to undertake such a big task. It has to get sufficient amount of funds to be invested for economy’s growth. Some of the areas for Government Spending can be Transfer Payments, Investment, Subsidies and Grants etc. (Alexiou and Anastasiadis 12) Transfer Payments are those unrequited payments as no such money is asked for as an exchange when this payment is made. After setting social welfare programs, Governments redistribute income among the deserving people, and these transfer payments are used to provide these incomes. Subsidies given by the government body should not be mixed with these specific payments given. With sound stewardship, along with a high degree of accountability, transparency and integrity, these transfer payments are managed by government (Weinbach and Paul 344). ...
Another source for government/public spending is ‘Subsidies and Grants’. Government take out a certain proportion from the capital reserves (money collected from taxes or other financial sources) they already have and then spend a certain amount of this money for the welfare and betterment of the society. Usually, these subsidies and grants are used to industrialize a state and encourage business owners to continue their business and economic activities (Nijkamp and Poot 124). Another source for Government spending can be ‘investment’. Investment is the foundation of Economic Growth and increases standard of living in the long run. Investments in human capital, education, labor skills and training, investment in physical capital, infrastructure and lastly investment in innovation, these all types of investments enables the economy to increase its growth and use its resources in the best possible way. Many of the high-income countries exist due to the presence of infrastructure in the country and this is mainly due to the investment that takes place (Wahab 135) Potential Benefits Governments make use of numerous grants and subsidies to support employment in the country, either by subsidizing private companies or by providing employment guarantees to the workers. Government procurement has been extensively used from past many years to require ‘fair wages’ from private contractors. In addition to this, government spending on social security benefits produces extra demand, because it gives greater purchasing and spending power to the citizens who would otherwise have very low real incomes and thus, this extra spending power ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Where does government spending go
Introduction The main source of revenue for the government is always the taxes which are imposed on general public and businesses. The same revenue is then spent by the government on various services rendered by the government as well as the purchases made.
4 Pages(1000 words)Essay
US government : campaign spending
Politicians seeking to be voted for need to travel across different states of the country in order to attract more voters to their candidates and they need to spend much in order to meet their target.
2 Pages(500 words)Dissertation
Government Higher Education Policies
Mostly, the education topic revolves around the advancement of children in the society to promote productivity within individuals as they grow into active societal members (Spicker, 2011). However, education is not limited to any individual as it involves a continuing process throughout an individual’s lifetime.
7 Pages(1750 words)Essay
The Role of Government in Economic Recession, Fiscal Policy
In this quarter the level of GDP declined as a result of the decline in customer spending by 1%, this decline was as a result of the high levels of unemployment in the economy. (Alan Rapperport (2009)) The current recession is considered the longest since 1947 and due to increased government spending the budget deficits this year is expected to reach $1,600 billion.
4 Pages(1000 words)Essay
Fiscal Policy: Government spending, taxes, budget processes,
d 43% of its total revenues from individual incomes taxes, 42% from Social Security/Social Insurance Taxes and && from corporate taxes (see Office of Management and Budget 2011 Budget-Summary Table S-3). According to the monthly budget review report of the Congressional Budget
3 Pages(750 words)Essay
Macroeconomics and Microeconomics,Government spending and Fiscal Policy, Taxation,
2. GDP refers to the monetary value placed on all the set of goods and services produced within a nation over a specific period of time, GDP is calculated by
8 Pages(2000 words)Essay
The current British government is seeking to cut spending by local authorities on their public services relative to 2009/10. What arguments might local authorities make against such cuts
The annual budget of the United Kingdom depicts the fact that a major portion of its annual budgets goes to local authorities in their public services (Crawford, 2009). For this reason, the government has adopted tactics to reduce
7 Pages(1750 words)Essay
Government Deficit Spending
Over the years, the debt rate in the United States has increased significantly. This debt is generated from the uncontrolled borrowing from the government has increased. In an argument by CBO (2012) the government has spent a lot of borrowed funds to a point that the set aside budget money intended to be borrowed cannot be accounted for.
2 Pages(500 words)Research Paper
Should the Government Intervent Tax
sulting in higher prices of tobacco products like cigarette will result lowering the smoking rates and the social benefit of lesser chance to passive smoking and its dangers is achieved. Moreover, the health benefit of quitting smoking and elimination of its injurious effects
3 Pages(750 words)Essay
Government Spending
On the other hand, the Treasury Department (1) points out that the collective figure spent on TARP, Bailouts and QE was reduced to $475 billion. However, it
2 Pages(500 words)Assignment
Let us find you another Essay on topic Higher Government Spending Must be Good for Growth for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us