What has the governmnet done in the past to improve economic growth?

Question

What has the governmnet done in the past to improve economic growth?

Answer 1

we dump tons of cash into welfare everyday to make sure shiftless  bums and drug dealers have money to pour into the economy in case the working class would have hoarded that surplus of cash in a bank

Answer 2

offer international countries options for study, exchange students pay much more than domestic ones. Spends money to gain money eg they create useful things or they should that can create profit in the long term.

taxes

Exporting & Importing deals.

Answer 3

Lied to us.

Answer 4

The government has tried to maintain an environment of low inflation through achieving price stability. This is because in the long term, low inflation will improve business sentiment and consumer optimism, and encourage higher levels of investment to fuel further economic growth. There are three fundamental forms of actions a country can take to improve the level of economic growth; these are namely microeconomic reforms, monetary policy and fiscal/budgetary policy. Because monetary policy is regulated by the RBA, I will discuss only microeconomic reform and fiscal/budgetary policy.

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Firstly, microeconomic reforms can induce an environment of low cost-push inflation and ease cost push inflation by expanding aggregate supply and improving Australia's productive capacity. By expanding Australia's production possibility frontier, the potential for sustainable economic growth is enhanced. Furthermore, an environment of low inflation is likely to sustain consumer and business sentiment in the long run, and create a desirable economic backdrop against which economic growth can be sustained.

-Capital deepening and increased investment into R & D

-Labour market reforms, designed to improve the level of efficiency in labour resources.Labour market reform has primarily entailed Australia moving from centralised wage system to a decentralised wage system, with the focus being on productivity based wage increases (e.g. the previous WorkChoices scheme).

-Government reform of GBE's through corporatisation, privatisation, etc... have been used to reduce the level of inefficiencies that can develop in an environment of low competition, with low levels of competition (e.g. the sale of Telstra, privatisation of QANTAS).

-Industry reforms, which have entailed scaling back of subsidies and tariffs to encourage free trade (e.g. TCF, PMV tariff has fallen consecutively over the past two decades).

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In terms of budgetary policy, the government has adopted a policy of fiscal consolidation, and has sought to achieve price stability by applying increasingly contractionary budgetary policy, countercyclical to the economic conditions.

- Discretionary policy such as increased investment in R & D, and capital deepening to increase productivity and thus economic growth

- Decreased levels of government outlays (limiting the size of G1 and G2, government capital and current expenditure).

- Income tax rate increases, designed to limit the level of spending and thus reduce demand pull inflationary pressures

- Use of automatic stabilisers such as the PAYG taxation system, which through the fiscal drag reduces the level of expenditure within the economy and thus limit the amount of inflation

Answer 5

you tell me.

Answer 6

Reduce taxes leaving more resources in the hands of those who can invest it most productively.