Government Spending Research Paper

Introduction

Government expenditure is a way in which the government tries to address the social and economical issues of poverty and inequality among their citizens,all these three being inter-locked with each other. Poverty is not having enough money to meet basic needs e.g food, clothing and shelter. Its hunger-not knowing where your next meal will come from, It is being sick and not having the means to see a doctor, Its being unable to access a school and read ,being unable to sustain yourself, it is living everyday without any acknowledgment of what tomorrow will bring or how one will survive. Its not being able to enjoy recreational activities, not having means to send kids to a trip, pay for a school play, not having the means to pay

We all pay the price for poverty. The increased cost on the health system, the justice system and other systems that provide supports to those living in poverty has an impact on our economy. Government expenditure includes all consumption, transfer payment and investments within an economy. It is the spending a government does in order to provide public goods and services such as building schools, houses, hospitals with great intentions of satisfying the needs of the collective community at large. Government spending can be financed by government borrowing, seigniorage, or taxes. Changes in government spending is a major component of fiscal policy used to stabilize the macroeconomic business cycle. Inequality is in essence an imbalance or inconsistency within an economy, but even in the most developed countries trying to reach equality within the economy may not be possible because the richer will keep being richer and the poor will

Government anti-poverty efforts have made some progress such as more jobs, higher incomes ,incentives for university students ,packages but have unfortunately not yet eradicated the problem but show signs of strong economic growth.

The poverty level for 2014 was set at $23,850 (total yearly income) for a family of four. Most Americans will spend at least one year below the poverty line at some point between ages 25 and 75. Poverty rates are persistently higher in rural and inner city parts of the country as compared to suburban areas. Some argue that even families whose incomes are above the official poverty level sometimes go hungry, skimping on food to pay for such things as housing, medical care, and clothing. Still others point out that people at the poverty level sometimes receive cash income from casual work and in the "underground" sector of the economy, which is never recorded in official statistics.In any event, it is clear that the American economic system does not apportion its rewards