California Budget Challenge

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Recommended: Role of government in economic activity

Internet Assignment
1. California budget challenge
How does the general economy affect government budgets? What is the role of government in helping the economy grow?
The government’s revenue comes from taxes. When the economy is doing well, the money keeps moving within the economy. The more transactions within the economy, the more revenue the government can make. This is the case with sales taxes and other trade and commerce related taxes. The government also takes in much of its revenue from property taxes. If the economy is doing well it is likely that more citizens will own property instead of rent. When the economy is not doing well, the money stops moving and the government may not collect as many taxes.
There are two major views on the government’s role in the economy, the Keynesian view, and laissez faire. The Keynesian view is often held by liberals and democrats. This is the belief that it is the government’s responsibility to regulate and attempt to manipulate the economy. This is often characterized by taxing and subsidizing, and redistribution of wealth. The laissez faire philosophy is held by republicans and libertarians. In a laissez faire economy, the market determines where the money flows. Those who participate in the market determine the supply and demand with the way they spend their time and money.
Which decisions were most difficult to make? Which program cuts or tax increases were the most challenging? Why?
The amount of funding for education was the most difficult to determine. This education system seems to be very inefficient and the huge backlog of teacher pensions restricted the more favorable budget. Well educated students leads to a more productive economy but there are many who do not take ad...

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...s many untapped resources that the government has kept businesses from taking advantage of. I believe a reduction in restrictions could lead to economic growth as seen in other states that have used fracking to bring in large amounts of growth.

Works Cited

Libertarian Party Platform - http://www.lp.org/platform
Opt out of gov. Regulation - https://www.youtube.com/watch?v=Zh1KzKURfVc&index=6&list=PL46A5304D2D15400F
Libertarian Party-issues-taxes - http://www.lp.org/issues/taxes
LP-issue-freedom of speech - http://www.lp.org/issues/freedom-of-speech
LP-issues-immigration - http://www.lp.org/issues/immigration
California State Constitution - http://www.leginfo.ca.gov/.const/.article_5
Elect Tim Donnely-issues-responsibility - http://www.electtimdonnelly.com/issues-responsibility
Elect Tim Donnely-issues-Prosperity - http://www.electtimdonnelly.com/issues-prosperity

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