The Allocation Of Funds Is An Ongoing Debate

1673 WordsMay 8, 20177 Pages
The allocation of funds is an ongoing debate when administering all aspects of fiscal policy. Policy makers around the world routinely debate what should take precedence when it comes to government spending. In general, lawmakers fall into one of two categories. They either believe and support that more government funds should be spent on social services, or the opposing view is that more should be allocated toward defense spending. Despite what elected officials might think, there is a finite amount of funds, therefore, without continuing to increase the national debt, an increase in spending in one category should cause a decrease in another. In 2016, the United States spent $615 billion on defense, $914 billion towards social security,…show more content…
Military spending for Benoit contributed to improved productivity and infrastructure. For countries who have a higher production capacity, military spending increases, as well as, aggregate demand, investment, and utilization of production. As a result, output is stimulated. In summary, despite the diverse set of countries observed, there was a 3.33 percent mean increase found in GDP growth. (Dicle and Dicle 2017). One country examined specifically is China. As a rising dominant military and economic power, China’s military and economic correlation holds significant relevance on a global perspective. Our findings confirmed a positive relationship between China’s economy and military spending. One source approaches our research question from a unique angle. Atesoglu focuses on the relationship between the two variables from a global viewpoint. Given that the world is globally anarchic, there is no supreme authority that controls all aspects of international relations (Atesoglu 2013). Thus, each state must maximize their military power to survive as a sovereign state. Sonmez concludes, “Economic growth relaxes the wealth constraint and allows for more military power. This theory implies that by increasing a country’s wealth, economic growth results in an increase in military spending.” proving an undeniable relationship (Atesoglu 2013). Furthermore, in light of China’s
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