Explain The Five Primary Economic Goals Of Government

Question 1.

The five primary economic goals of the government are as follows:

Economic growth:

Economic growth refers to an “increase in the production of goods and services each year, and it is expressed in terms of a rising gross domestic product (GDP)” (Kraft & Furlong, 2015 p.217). Strong economic growth can be beneficial for the Federal Government because if people make more money, they spend more money, which both lead to increases in tax revenues (Kraft & Furlong, 2015). As explained by Kraft and Furlong (2015), economic growth also often leads to less resistance from citizens on redistributive policies because they, too, have received an uptick in wealth.

Low levels of unemployment:

Reduced unemployment means citizens are less dependent on governmental support for survival (Kraft & Furlong, 2015). The less the government has to spend on programs to support unemployed individuals, the more money it has to spend in other areas (Kraft & Furlong, 2015). Additionally, more citizens in the workforce means more money being paid into Social Security, Medicare, and other entitlement programs (Kraft & Furlong, 2015). Lastly, Kraft and Furlong (2015) also explain that not only do

Managing yearly deficits is important because it means the government is trying to control its spending in relation to what it is earning in tax revenues (Kraft & Furlong, 2015). Consistently running deficits contributes to the astronomical US debt, which accrues interest (Kraft & Furlong, 2015). Kraft and Furlong (2015) really put this point into perspective when they pointed out that the more the debt grows, the more interest is owed, which when paid means that money is essentially being thrown away because it is not being used to enrich citizens’ lives. According to Kraft and Furlong (2015), by managing deficits and debt, the US would “show fiscal responsibility” (p.223), which should be a goal of any political