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For HBLE, you will have both a morning (AM, before 12pm) task and an afternoon (PM, from 12 - 7pm) task.

AM: Look through the given resources and note down the key points. Then, craft a paragraph for either the thesis or anti-thesis to the following discussion question:
"To what extent does greater government spending improve the SOL of a country's citizens?"

If you see that many have already written paragraphs for the thesis, try writing the anti-thesis instead.  Remember to use PEEL to guide your writing.

When posting, use your name as the title (otherwise your teacher can't check if you've completed your work).

PM: Read through the arguments written by your classmates. Then, comment on an argument made by one of your classmates (more if you wish).  In your comment, you may:
1. Question assumptions made
2. Write a counter-argument
3. Elaborate on the extent

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Greater government spending means that / leads to ______________. [this is a sample]

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Singapore Budget 2017 explained in 3 minutes

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Singapore to raise taxes as government spending increases

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Singapore to raise taxes as government spending increases

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Greek budget surplus beats creditor targets at 3.9%

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Greek budget surplus beats creditor targets at 3.9%

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Greater government spending leads to an increase in AD by injecting money into the economy and causing spending to increase. This causes the national income to increase, thus increasing citizen's quantitative standard of living

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When the government spends more, it causes the AD to increase and this may mean more money spent on education or healthcare. On the other hand, when AD increases, it also means that the GDP and national income of a country would increase, causing an increase in the SOL.

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In order for the government to have greater spending, they must first obtain revenue from somewhere. Usually these would come in the form of increased income/corporate tax on its citizens or even having to borrow from other countries. Especially in a country that is not faring well at that moment and wants to improve both the economy and standard of living of the country, this could potentially lead to a country's citizens having to live in a lifestyle that could be worse off than what they were living before.
While it could be argued that the government could potentially solve this problem by getting a net positive return and outcome which deals with these issues - justifying the action of the government having to increase its revenue through its citizens - It would not be safe to assume that the government would be able to guarantee a net positive outcome afterwards since there may be other underlying factors and unforeseen situations happening around the world which could inevitably cause the economy of a country to falter yet again. Furthermore, a one-off positive outcome may not necessarily mean that it would be to stay and prevent any other future deficits that could arise caused by the need to improve the standard of living of a country through greater government spending.

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as the government spent more, it will increase the G of AD. this will cause the GDP of country to increase. furthermore, if these spending are into improving infrastructure such as  transportation, it will make things more convenient and easier for people. in addition when the GDP increase, it will increase the quantitative aspect of SOL. when the spending are into aspects of the country such as infrastructure, it will increase the qualitative aspect of the country as things such as getting around places are easier as well as access to electricity and clean water is easier, making the quality of life better and thus, SOL of a country increase

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When government spending increases , the G component of aggregate demand increases, causing the curve to have a rightward shift. This causes and increase in the real GDP as the new equilibrium point would be at a higher gdp. As such, the economy of the country would be strengthened, and quantitative standard of living would increase.

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When government spending increases, provided that it is spent on things such as infrastructure development, education and healthcare, the country's citizens SOL will improve qualitatively. On the more quantitative side of things, when government spending increases, the G component of the country's AD will increase and thus AD will increase and when AD increases, the country's GDP will increase, improving the quantitative aspect of the citizen's SOL

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Greater government spending leads to the increase in the government expenditure which consequently leads to an increase in the AD. As a result, the rightward shift of AD will cause the GPL and NY increases. with the increase in AD the Real GDP also increases. hence the quantitative aspect of SOL increases.
The rise of AD will cause a positive actual growth. The increase in The increase in G also means that the public sectors such as healthcare, education and defense are improved These enhancement increases the qualitative aspect of SOL.

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in order to for the government to increase its expenditure, according to the extract, the government planned to increase taxes such as GST. With an increase in G, the rightward shift of AD will cause the GPL to increase. this may cause inflation. Hence, the real income for household to decrease. thus, purchasing power decreases. This causes the consumption to decrease. As a result, the material SOL decreases instead.

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Greater government spending leads to an increase in AD since AD= C+I+G+(X-M). As the government spending can be used to subsidise for the poor or even spend on healthcare or military sector, it will increase the qualitative and/or quantitative aspect of SOL. In the case of Singapore, it is a country that has savings and are likely to borrow more to spend more.Assuming that the rise in government spending leads to a rise in AD, ceteris paribus, AD curve shift to the right and hence achieving a higher real national income, suggesting there is an actual growth. In the case of the Budget  2017 that is released by the Singapore government, it has stated clearly that the government will inject funds to strengthen enterprise capabilities. This suggests that this will improve the quality of the entrepreneurs in Singapore, suggesting that there will be a potential growth. In Budget 2017, it also stated measures to address climate change and vehicle emissions. These suggests that the government has stepped up to come up with measures to protect the environment. Lastly, the Budget 2017 will be used to ensure the country will ensures an inclusive growth among the citizens in Singapore. SkillsFuture Leadership Development Initiative will ensure that the skills of individual is enhanced such that they can have a higher chance to get a higher income. Hence, the greater government spending improves both the qualitative and also quantitative aspects of SOL of a country's citizens.

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Greater government spending does not necessarily improve the SOL of a country's citizen. From the case in Singapore,  although there was increase in government expenditure to improve many areas in singapore which would mean an increase in AD and subsequently an increase in R.NY,  the source of the money that is used to make such improvements suggests otherwise. As government spending increases, the money to support such expenditure comes in the form of increased taxes. At the same time due to the different happenings such as BREXIT, singapore is experiencing a slow economic growth which means while income level of people are not really growing, taxes increases which causes the purchasing power of people to decrease and hence the material aspect of life have not improved at all.

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As government increases spending, AD increases which causes a rise in GPL as well as GDP and national income. This causes inflation in prices which is affordable by citizens due to the increase in national income, meaning that they can account for the rise in prices. Hence as national income and GDP of the country increases, it means that the citizens are more wealthy and have more disposable income in which they can use on luxury goods to improve their quantitative standard of living.

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Government spending does not necessarily improve the standard of living if the AS in the long run does not keep up with the increase in AD. Before the government decides to spend, they must first make sure that the aggregate supply increases in the long run in order to achiever sustainable growth. Should long run AS not increase but AD continues to increase, the GPL will rise significantly which little to no increase in the GPD and national income as all resources are fully utilized. Taking into consideration the context of Greece, the government overspends without taking into account its future plans such as accounting for the 2008 depression in which they were not prepared for and landed them in massive debt, affecting both the government as well as the citizens. With the GPL rising significantly, it causes hyperinflation which reduces the internal value of money, thus citizens will find their money worthless and thus they will not be able to spend on luxury goods etc. affecting their quantitative standard of living. The citizens would also be under a lot of pressure due to the reduced value of money, adding stress to their lives which affects their qualitative standard of living.

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When the government expenditure increase, the G component will increase causing AD to increase. When AD increase, the AD graph will shift right causing GDP to increase. When GDP increase, the economy will prosper. This will lead to increase in SOL