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fgiga [73]
1 year ago
10

Considering what you read in the article, do you think the benefits created through public programs outweigh their expenses?

History
1 answer:
Brums [2.3K]1 year ago
7 0

Based on the article, I think that the benefits created through public programs outweigh their expenses.

<h3>What are public programs?</h3>

Public programs are assistance programs created by governments at different levels to assuage the humanitarian needs of society, especially the poor and needy.

For example, the federal government provides Temporary Assistance for Needy Families, Supplemental Security Income, and the Earned Income Credit.

Other examples of public programs by the federal government include Medicaid, Food Stamps, and housing assistance.

Thus, when weighed on humanitarian grounds, the benefits created through public programs outweigh their expenses.

Learn more about the benefits of public programs at brainly.com/question/508027

#SPJ1

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A:

During a period of rapid investment, there is a corresponding spike in employment and spending power. As spending power increases, inflation also spikes. If left unchecked, this can erode spending power thus reducing the incentive to hold money, trigger panic buying and discourage investment.

Fiscal Policy Solution: Government can decide to reduce it's spending whilst carefully increasing taxes by withdrawing tax rebates and subsidies. The government usually is the biggest spender in most economies if it curtails its spending a lot of funds will be mopped up. Taxes also reduces spending power.

Monetary Policy Solution: increasing discount rates, and reserve requirements will help the Central Bank reduce money supply in the economy. Another method the Central Bank uses to mop up excess money supply is to put on sale government bonds.

B:

Due to whatever reason, when there are massive layoffs, this is usually because the corporate entities, are entering the self-preserving mode, or are actually shutting down due to stringent economic conditions, low money supply, etc. As people get laid off, an important component of demand (Consumer spending) take a nosedive. People save more than they spend as they enter self-preservation mode. This, in turn, creates a cycle of depression. Sales of products drop. Production slows down tending towards a halt. As production slows down, so does profit, and ability to continually pay staff salaries. The result? more layoffs.

Fiscal Policy Solution:

The government can embrace expansionary Fiscal Polieis such as

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The above add-up to increase aggregate spending.

Monetary Policy Solution:

Reduction of Discount Rates and Reserve requirements all serve to encourage lending. As lending increases, investments increases, and employment takes on an upward spiral. When people regain their jobs, they become more confident in the economy and this triggers spending.

Cheers!

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