Essays on Transfer Payment

I. Summary The New Urbanization system is an important tactical decision in developing socialism in Chinese characteristics. This has an insightful implication for the extensive plans towards the development of a prosperous society, as it helps support the acceleration of socialist modernization, as well as other causes. Accordingly, the growth among new urbanization systems demands the provision for any relevant and required mechanism in the system. Based on the released documents from the State Council, the promotion of new development schemes in urbanization system is a vital element if only to achieve new urbanization in 2015. According to the ...

In 1960's the government biggest proportion of its spending went to investment. In 1962, the amount of government expenditure on investments was around two and half times that of transfer payments. Currently, the boat has capsized, and the spending on transfer payments has grown to over three times the spending on investment. . This indicates a drift of government goals. Precisely, transfer payment was mere 15% of the federal budget in 1960’s but currently it is over fifty percent. Transfer payments refer to the money paid by the government to households for no work done. The payments are done ...

In case, real GDP is lower than potential GPD expansionary policies are implemented in correcting contraction of business cycle. Expansionary Fiscal policy leads to increases in purchases by government, tax rate decrease and transfer payment increase to overcome contracting business cycle. Expansionary fiscal policy closes gap of recession, stimulates economy and decreases rate of unemployment.

Fiscal policy tools to stimulate economy are:

Government Purchases Expenditures done by government sector for services and final goods come under Government purchases. Government purchases are part of GDP bought by the government. Government purchases include heavy cost expenses like highway construction and aircraft clips carriers to smaller expenses like ...