The role of governmentHaving mentio

The role of government

Having mentioned the effect of government tax policy on the income distribution, it's necessary to examine greater detail the role of the gov­ernment in society. In every society governments provide such services as national defence, police, public education, firefighting services, and the administration of justice. In addition, governments through budget make transfer payments to some members of society.

Transfer payments are payments made to individuals without requiring the provision of any service in return. Examples are social security, retirement pensions, unemployment benefits, and, in some countries, food stamps. Government expenditure, whether on the provision of goods and services (defence, police) or on transfer payments, is chiefly financed by imposing taxes, although some (small) residual component may be financed by government borrowing. The table below compares the role of the government in four countries.

Government Spending as a Percentage of National Income

Country


Purchase of goods and services %


Transfer payments %


Debt interest %


Total %


UK


23,0


17,2


5.1


45,3


Japan


14,9


12,7


4,6


32,2


usa


20,1


12,2


4,8


37,1


Italy


27,0


23,0


9,2


59,4


In each case, we look at tour measures of government spending as a percentage of national income: spending on the direct provision of goods and services for the public, transfer payments, interest on the national debt, and total spending.

Italy is a «big-government» country. Its government spending is large and it needs to raise correspondingly large tax revenues. In contrast, Japan has a much smaller government sector and needs to raise correspondingly less tax revenue. These differences in the scale government activity relative to national income reflect differences in the way different countries allo­cate their resources among competing uses.

Governments spend part of their revenue on particular goods and services such as, tanks, schools and public safety. They directly affect what is produced. Japan's low share of government spending on goods and services in the table reflects the very low level of Japanese spending on defence.

Governments affect for whom output is produced through their tax and transfer payments. By taxing the rich and making transfers to the poor, the government ensures that the poor are allocated more of what is produced than would otherwise be the case; and the rich get correspondingly less.

The government also affects how goods are produced, for example through the regulations it imposes. Managers of factories and mines must obey safety requirements even where these are costly to implement, firms are prevented from freely polluting the atmosphere and rivers, offices and factories are banned in attractive residential parts of the city.

The scale of government activities in the modem economy is highly controversial. In the UK the government takes nearly 40 per cent of national income in taxes. Some governments take a larger share, others a smaller share. Different shares will certainly affect the questions what, how and for whom, but some people believe that a large government sector makes the economy inefficient, reducing the number of goods that can be produced and eventually allocated to consumers.

It’s commonly asserted that high tax rates reduce the incentive to work. If half of all we earn goes to the government, we might prefer to work' fewer hours a week and spend more time in the garden or watching TV. That is one possibility, but there is another one: if workers have in mind a target after-tax income, e.g. to have at least sufficient to afford a foreign holiday every year, they will have to work more hours to meet this target when taxes are higher.

Whether on balance high taxes make people work more or less remains an open question. Welfare payments and unemployment benefit are more likely to reduce incentives to work since they actually contribute to target income. If large-scale government activity leads to important disincentive effects, government activity will affect not only what, how, and for whom goods are pro­duced, but also how much is produced by the economy as a whole.

This discussion of the role of the government is central to the process by which society allocates its scarce resources. It also raises a question. Is it inevitable that the government plays a prominent part in the process by which society decides how to allocate resources between competing demands? This question lies at the heart of economics

Результаты (английский) 1:

The role of governmentHaving mentioned the effect of government tax policy on the income distribution, it's necessary to examine greater detail the role of the government in society. In every society, governments provide such services as national defence, police, public education, firefighting services and the administration of justice. In addition, governments through budget make transfer payments to some members of society.Transfer payments are payments made to individuals without requiring the provision of any service in return. Examples are social security, pensions, retirement benefits, unemployment benefits, and, in some countries, food stamps. Government expenditure, whether on the provision of goods and services (defence, police) or on transfer payments, is chiefly financed by imposing taxes, although some (small) residual component may be financed by government borrowing. The table below compares the role of the government in four countries.Government Spending as a Percentage of National IncomeCountryPurchase of goods and services%Transfer payments%Debt interest%Total%UK23.017.25.145.3Japan14.912.74.632.2USA20.112.24.837.1Italy27.023.09.259.4In each case, we look at measures of tour government spending as a percentage of national income: spending on the direct provision of goods and services for the public, transfer payments, interest on the national debt, and total spending.Italy is a "big-government" country. Its government spending is large and it needs to raise correspondingly large tax $USD. In contrast, Japan has a much smaller government sector and needs to raise correspondingly less tax revenue. These differences in the scale government activity relative to national income reflect differences in the way different countries allocate their .resources among competing uses.Governments spend part of their revenue on particular goods and services such as, tanks, schools and public safety. They directly affect what is mass-produced. Japan's low share of government spending on goods and services in the table reflects the very low level of Japanese spending on defence.Governments for whom the affect output is mass-produced through their tax and transfer payments. By taxing the rich and making transfers to the poor, the government ensures that the poor are allocated more of what is well-produced than would otherwise be the case; and the rich get correspondingly less.The government also affects how goods are mass-produced, for example through the regulations it imposes. Managers of factories and mines must obey safety requirements even where these are costly to implement, firms are prevented from freely polluting the atmosphere and rivers, offices and factories are banned in attractive residential parts of the city. The scale of government activities in the modem economy is highly there. In the UK the government takes nearly 40 per cent of national income in taxes. Some governments take a larger share, others a smaller share. Different shares will certainly affect the questions what, how and for whom, but some people believe that a large government sector makes the economy inefficient, reducing the number of goods that can be mass-produced and eventually allocated to consumers. It's commonly asserted that high tax rates reduce the incentive to work. If half of all we earn goes to the government, we might prefer to work fewer hours a week ' and spend more time in the garden or watching TV. That is one possibility, but there is another one: if workers have in mind a target after-tax income, e.g. to have at least sufficient to the Roma community a foreign holiday every year, they will have to work more hours to meet this target when taxes are higher. Whether on balance high taxes make people work more or less remains an open question. Welfare payments and unemployment benefit are more likely to reduce incentives to work since they actually contribute to target income. If large-scale government activity leads to important disincentive effects, government activity will affect not only the what, how, and for whom goods are mass-produced, but also how much is mass-produced by the economy as a whole.This discussion of the role of the government is central to the process by which society allocates its scarce resources. It also raises a question. Is it inevitable that the government plays a prominent part in the process by which society decides how to allocate the .resources between competing demands? This question lies at the heart of economics

Результаты (английский) 2:

Role of Government of The Having mentioned the effect of Government policy on the tax income ratio distribution, IT's Necessary to the examine is greater the detail the role of the Government in Society. In every society governments provide such services as national defence, police, public education, firefighting services, and the administration of justice. Addition with In, governments through budget the make transfer payments to some members of Society. The Transfer payments are payments made ​​to Individuals without Requiring the ProVision of the any service, in return statement. Examples are social security, retirement pensions, unemployment benefits, and, in some countries, food stamps. Government expenditure, whether on the provision of goods and services (defence, police) or on transfer payments, is chiefly financed by imposing taxes, although some (small) residual component may be financed by government borrowing. The table Compares the below of The the role of the Government in a four Countries. Government Spending as with a the Percentage of the National Income Country the Purchase of the Goods and services% the Transfer payments% Debt Interest% of Total% UK 23.0 17.2 5.1 45.3 Japan 14, 9 12.7 4,6 32.2 usa 20,1 12,2 4.8 37.1 Italy 27.0 23.0 9,2 59.4 with In each a case, we look AT tour the Measures of Government Spending as with a National income ratio of PERCENTAGE:. ​​Spending on the direct ProVision of the Goods and services for the the public, transfer payments, the National Interest on debt, and total Spending Italy is a «big-Government» country. Its government spending is large and it needs to raise correspondingly large tax revenues. In contrast, Japan has a much smaller government sector and needs to raise correspondingly less tax revenue. Differences in the for These scale Government activity relative to income ratio Reflect National differences in the way the allocate Different Countries Their resources for Among Competing uses clause. Governments Spend part of Their Particular revenue on the Goods and services such as with, tanks, Schools and the public safety. They directly affect what is produced. This content share of low's Japan of Government Spending on the Goods and services in the The table Reflects the very of low: level of Japanese Spending on Defence. Governments for Whom the affect output is Produced through Their tax and transfer payments. By taxing the rich and making transfers to the poor, the government ensures that the poor are allocated more of what is produced than would otherwise be the case; the get the rich and correspondingly less See. of The Government Also Affects how of the Goods Produced are, for example through the IT Regulations imposes. The Managers of factories and Mines a must obey safety 'requirements is even where clause for These are Costly to IMPLEMENT, firms Lithuania are prevented from freely polluting the the atmosphere Insider and Rivers, offices and factories are Banned in attractive residential parts of the o city. Of The scale of Government activities Insider in the modem economy is highly controversial. In the UK the government takes nearly 40 per cent of national income in taxes. Some governments take a larger share, others a smaller share. Different shares is will of certainly the affect the Questions what, how of and for Whom, But some people Believe That a large Government sector Makes the economy inefficient, Reducing the number of the Goods That CAN the BE Produced and Eventually Allocated to Consumers. It's commonly Asserted That the high tax information Rates reduce the incentive to work. If half of all we earn goes to the government, we might prefer to work 'fewer hours a week and spend more time in the garden or watching TV. That is one possibility, but there is another one: if workers have in mind a target after-tax income, eg to have at least sufficient to afford a foreign holiday every year, they will have to work more hours to meet this target when taxes Higher are. Whether the balance on the high Taxes the make people work more or less See Remains an the open question. Welfare payments and unemployment benefit are more likely to reduce incentives to work since they actually contribute to target income. The If large-scale Government activity Leads to by important a disincentive effects, Government activity will of the affect not only what, how of, and for Whom the Goods are Produced, But Also how of much is Produced by the economy as with a Whole. This discussion Other of the role of the Government is central to the process by which society allocates its scarce resources. It also raises a question. Is it inevitable that the government plays a prominent part in the process by which society decides how to allocate resources between competing demands? This question lies at the heart of economics