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Public Services Policy Analysis

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Policy and its effect on Public services

Economists employed by the government are involved in implementing policies, which were especially established to meet government 's objectives that are very often multidimensional. There are four very fundamental objectives for viable economy, including decreasing the unemployment rates in certain regions, lower or stabilise the inflation , constant economic growth and a satisfactory balance of payments position. The UK economy continues to suffer from a number of underlying structural weaknesses. The government is now set on providing the economic framework, which will enhance the opportunity to raise a sustainable rate of economy growth, (Anderton, 2006). Economic growth also known as economic …show more content…

Most countries in the world give an account each year for their financial transactions with the other countries. In the UK government, the balance of payments became very dominant in 1970 from a desire to defend the strength of the sterling. The balance of payments refers to mainly to trade-related payments and all payments made between one country and the rest of the world. Such payments include personal payments made between individuals in different countries or subscriptions to international bodies such as the United Nation or international aid given to poorer countries. In Britain, the balance of payments account shows the foreign currency that has been spent on imported goods and services and foreign currency, which on the other hand has been earned by exporting goods and services. Many times, such accounts are not in equilibrium, which means that there's a difference between earnings and expenditure. Therefore, when the value of goods and invisibles-services exported exceed the values of imported goods and invisibles, we say that there is a surplus current balance. However, when the reverse occurs, we say that there is a deficit current …show more content…

Government's objectives have transformed from from long-standing ones and have focused on inflation and stable macro stance through establishing supply side policies. Moreover, supply side policy has a direct or indirect impact on many government's spheres. Cutting the marginal rate of income was a major supply side objective during the Thatcher's governance. At the beginning of Thatcher governance in 1979, the standard rate of income was 33 per cent and the top rate was more than 80 per cent. By 1997 the standard income rate fell to 23 per cent and the top rate was only 40 per cent, (Sloman, 2007). Such policy appears to be prosperous as the Blair government continued with this policy. According to many economists, cuts in the marginal rate of income tax have a positive effects, for example, people wish to work long hours, people work more enthusiastically, employment rises and unemployment rapidly falls. Furthermore, the Thatcher's government took a number of measures to reduce the power of labour in order to encourage investments and hence economic growth, (Sloman, 2007). Conservative government believed that the rise of economic growth can be achieved by helping to small businesses, which are very fundamental as they create provide job

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