- 2013 evil bos questions- (1 Viewer)

[NWO]

How does fiscal policy affect income distribution in the Australian economy.

I didnt study that specfic part. So, can i also mention, economics growth, inflation, unemployment, 2013 Federal Budget, as well as income distribution etc...?
Or are they gonna troll and give you a 0 if u dont?

 

[knxd]

in so many ways
automatic stabilizers = government profit
gov profit can be used for transfer payments, community services, social expenditure, etc
changes in tax, increase in gst(regressive tax)

and spending in welfare programs etc etc

 

[NWO]

so complicated. That, what you have just said, can be written in 4 lines.... cant i mention other stuff? eco growth, inflation, and monetary policy? Question is too specific

 

[knxd]

No

 

[Shazer2]

Definitely mention progressive taxation and transfer/social payments (centrelink), which both narrow the distribution gap. Also fiscal initiative such as NDIS which gives money to disabled (who are likely unemployed), will also narrow the gap.

 

[leesh95]

so complicated. That, what you have just said, can be written in 4 lines.... cant i mention other stuff? eco growth, inflation, and monetary policy? Question is too specific

Don't say monetary policy. It has nothing to do with fiscal.

You can actually expand on what knxd wrote and it will be a good couple of paragraphs.

 

[leesh95]

-The government can target specific groups who are disadvantaged such as single parent families, low income earners, Aborigines etc. who are more socially disadvantaged and have special tax benefits given to them etc. (Give examples)

-The use of superannuation although regressive in the short run is designed to be promote income equality in the future where low income earners will have some income as compared to high income earners (don't know how to word that) according to productivity commission superannuation is expected to raise wealth of low income earners by 22%

-The government increased the income tax threshold from $6000-18600 meaning that low income households have more disposable income. Also the year before the government also raised the threshold for the second income tax quintile.

-Australia has a progressive taxation system where income tax increases marginally with the rate of income. This tax is used by the government to provide welfare payments which has a re distributive impact etc.

-You could talk about government programs to train labor force and increase employment e.g. job services, Building Australian workforce package that will decrease inequality as more people get employed etc.

 

[NWO]

no in school lol. u were supposed to mention both fiscal and monetary cos they were both used during gfc

 

[NWO]

is this right: Progressive taxation: The more high income earners earn, the more they are taxed in contrast to low-income earners. This taxation is transferred to disadvantaged people, in the form of welfare payments, financial assistance etc?

 

[leesh95]

no in school lol. u were supposed to mention both fiscal and monetary cos they were both used during gfc

Well your top question said fiscal policy specifically and its different to monetary policy.