milkshakelover
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I've got an essay to write on 'How can the UK Government devise a way to help the UK economy strengthen after a 0.25% increase in economic growth in the last quarter of 2015?'
I've written the essay with the main method being using taxation, increase education, and increase in infrastructure but I need more points on how the use of Government grants could/couldn't aid economic growth.
Thank-you in advance
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User1333171
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(Original post by hxfsxh)
I've got an essay to write on 'How can the UK Government devise a way to help the UK economy strengthen after a 0.25% increase in economic growth in the last quarter of 2015?'
I've written the essay with the main method being using taxation, increase education, and increase in infrastructure but I need more points on how the use of Government grants could/couldn't aid economic growth.
Thank-you in advance
If they use grants to help businesses expand and therefore create more jobs and increase output that would help the economy to grow.
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theconfusedman
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(Original post by hxfsxh)
I've got an essay to write on 'How can the UK Government devise a way to help the UK economy strengthen after a 0.25% increase in economic growth in the last quarter of 2015?'
I've written the essay with the main method being using taxation, increase education, and increase in infrastructure but I need more points on how the use of Government grants could/couldn't aid economic growth.
Thank-you in advance
+ Grants can lower a firms cost of production, which is an incentive to increase output of the whole economy, which will increase the real output of the whole economy.
- No guarantee the grants will be used in the firm - may just go into the companies profits, shareholders, executives etc and won't benefit the economy - just a loss of government revenue

Im not sure about this, but i do believe grants are a form of government spending, which also increases aggregate demand.
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