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Economics question?

To what extent should government spending be tightly controlled and not used to manage the economy with regards to fiscal policy? (25 marks)
A lot more than is happening now. I will leave others to provide some more detailed ideas.
Original post by killerspeedforce
To what extent should government spending be tightly controlled and not used to manage the economy with regards to fiscal policy? (25 marks)

Suffice to say you will be paying for this current **** show for at least 20 years.
Original post by killerspeedforce
To what extent should government spending be tightly controlled and not used to manage the economy with regards to fiscal policy? (25 marks)

Obviously government spending to control/manage the economy is good to ensure societal welfare and economic growth. It's difficult to say a fiscal stimulus is categorically damaging by any stretch of the imagination.

But I would point out (assuming this is an essay question for you) the opportunity cost to the government of not being able to spend that money elsewhere and also the implications such as increased taxation. This relates to short-term/long-term effects. For example short-term positive effects of a fiscal stimulus vs long-term possibly negative effects (like higher taxation causing a fall in consumer spending and therefore worsening societal welfare).
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Joleee
19
as you are looking for study help, i moved your thread to the relevant forum :h:

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