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Singapore Budget 2017 explained in 3 minutes

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

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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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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 means that the government expenditure component of aggregate demand increases and thus, the aggregate demand also increases. Thus, this also means that there is positive actual potential growth. Since economic growth is the increase in real output over time, there is also positive economic growth.

Also, with an increase in government expenditure, there will also be an increase in quantity or quality of capitals such as in Singapore, the building of Changi Airport Terminal 5, thus leading to increasing productive capacity, thus causing an increase in the long run aggregate supply, thus leading to positive potential growth.
With both positive actual and potential growth, this would lead to an increase in real output or national income over time.

Thus with an increase in actual and potential output, there is economic growth. Economic growth will lead to a rise in the current living standards due to the increase in national income as the economy now results in an increased ability to consume more goods and services, resulting in the quantitative standard of living.
Moreover, economic growth provides the means to work towards an inclusive growth. Economic growth suggest higher national income and hence the government is able to collect a larger amount of tax revenue from firms and consumers and thus, channeling more resources to help to the poor, thus reducing income inequality between the rich and the poor, thus also leading to a increase in quantitative standard of living of the citizens.

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Standard of living comprises of two aspects: qualitative and quantitative aspect.

As seen from Singapore budget 2017, the Singapore government has allocated its expenditure on ensuring an innovative and connected economy, which means that it will deepen people's capabilities in the aspect of have better skill sets for jobs. This increases the quality of Singapore's labour pool which in turn, cause an increase in productive capacity, leading to a rightward shift in LRAS, hence ensuring a positive potential growth.

Additionally, with an increase in the quality of labour, investors might find Singapore an attractive avenue of investment as they might be able to earn more profits with more good and services being able to be produced. This increase their investment on Singapore and hence causing an increase in Singapore's actual growth.

With actual and potential growth, this leads to economic growth of Singapore. When there is economic growth, this increase the real national income of Singaporeans. Singaporeans now have an increase in their disposable income which in turn increases their purchasing power and ability to afford for more goods and services. This in turn leads to an increase in Singaporeans quantitative aspect of standard of living.

The government also has plans to make healthcare in
Singapore affordable by providing more subsidies to people of the lower income group. This improves the accessibility to healthcare services to those lower income groups, implying that they can seek medical treatment when they have ailments. This in turn improves their qualitative standard of living.

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While greater government spending means that the AD will increase and show positive actual and potential growth leading to positive economic growth. However this is only in the short term.

When Greece overspends, there will be a rise in the country's AD causing it to lead to positive economic growth in the short run. However if the overspending is financed, by means such as increased taxes, to counter the increased in spending, there will be no increase in AD. Thus there will be no increase in the quantitative aspect of SOL in Greece.

Furthermore if the Government has overspend and incurred loans, the Government may take loans from private sectors to try to increase the GDP to boost economic growth. In Greece, it can be seen that it incurred loans due to the recession in 2009. This may be due to the fact that the government has overspend and due to the recession it caused employment which lead to a fall in economic growth. The loans were to help act as a expansionary fiscal policy to help boost economic growth. However it resulted in a decrease in taxes which means that the government would not be able to pay off its debt quickly. As this led to increase in cost of borrowing, the more the government spends to try to boost the economy the spending will go to the investors and private sectors resulting in no benefit for the economy of Greece.

With the Austerity measure, the consumer spending will decrease leading to a decrease in AD causing the NY and GDP to decrease leading to a negative economic growth. As actual growth decreases.

Thus SOL will not increase as there has been no increase in economic growth in the country due to a stagnant national income and a decreasing workforce. Thus the government spending does not improve the SOL of the citizens.

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standard of living refers to the well-being of the residents in a country. there are 2 aspects, quantitative and qualitative.                        Greater government spending improves the SOL of a country's citizens. this is because with the government budget, the country is more able to spend on resources such as infrastructure, education, healthcare etc. For example, the singapore budget 2017, one of the areas it is spending on is the skillsfuture programme. Such programme will help improve the skills of people and improve the labour force, raises labour productivity which accelerates growth. moreover, a better educated and more skilled workforce is also more responsive to changes, and is more willing to take up further training to upgrade skills. hence, LRAS will increase as quality of labour increases, hence there is potential growth and AD also increases as government expenditure, a component of AD increases, real gdp increases, hence there is actual growth, which leads to economic growth, hence quantitative sol is improved.

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Greater government spending leads to an increase in government expenditure, thus resulting in an increase in aggregate demand. The aggregate demand curve shifts rightwards, thus showing that there is positive actual growth.

Moreover, greater government spending also leads to an increase in quantity of capitals, which results in an increase in productive capacity. Hence, aggregate supply in the long run will increase, causing the aggregate supply curve to shift rightwards. Thus, this shows that there is positive potential growth.

Additionally, greater government expenditure results in an increase in the quality of labour. This attracts businessmen to invest in Singapore, as the improvement in quality of goods and services can lead to greater profits. Hence, foreign investment increases, leading to a greater aggregate demand, thus showing an increase in positive actual growth.

Since there is positive actual and potential growth, there will be signs of economic growth. Economic growth will lead to a rise in the quantitative aspect of standard of living as there is now an increase in national income.

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An increase in Government spending increases AD. This causes the AD curve to shift to the right signifying actual growth in the economy.

Greater government spending assists in technological advances which helps to increase the quality of labor and its productive capacity.This leads to an increase in potential growth.

Furthermore, greater government spending leads to inclusive growth. Greater government spending creates productive employment opportunities for the majority of the country's population and distributes the dividends of increased prosperity. In Singapore's case, the government has used their budget to provide skills upgrade for the workers so as to increase their income.

Since the citizens experience an increase in actual growth of the economy and there is also an increase in potential growth , greater government spending leads to a growth in the economy. The workers also experience an increase in income due to the inclusive growth which increases their SOL

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Standard of living is the state of well-being in the society and is measured by quantitative and qualitative aspects. Greater government spending will only improve the SOL of a country's citizens when the government aims to raise the SOL of its citizens.

However, sometimes the government might not want to improve the SOL and focus their government spending on other areas like the military or debt payments. In this case, the SOL of its citizens will not improve as they will not benefit from overspending of the military of debt payments.

Also, if the economy is in full capacity, increased government spending may also lead to inflation which lowers the SOL of the country's citizens as their value of money they have will decrease which lowers the quantitative aspect of SOL.

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Greater government spending means that AD will increase and thus increases GDP and the quantitative aspect of SOL. However, increase in government spending does not definitely mean that the AS will increase as well. If the AS in the long run does not increase when AD increases, the country will go into inflation and the citizens will have lower purchasing power as the value of their money has dropped significantly. Thus, citizens consumption decreases and therefore results in a decrease in their quantitative aspect of SOL.

In addition, a big portion of the government's revenue includes goods and services taxes and corporate tax. Increase in government spending means increase in government's revenue which means increase in taxes. The increases in taxes decreases citizen's purchasing power and consumption hence their quantitative SOL. Investments becomes more expensive and investors lose their confidence in investment, especially for the case of Singapore as many investors are attracted to Singapore due to its low tax rate. Hence, AD decrease causing GDP to decrease and hence lowering quantitative SOL.

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Standard of living refers to the well-being of the people living in the country. It is measured in two aspects - quantitative and qualitative.

Greater government spending increases AD as it is a factor of aggregate demand. When government spending increases, AD increases and shifts right. As a result, the national income of the country increases. This mean people now hold higher average income and thus increases their quantitative SOL.

Greater government spending leads to an increase in the qualitative SOL of the people. When government spending increases, they spend it on the healthcare, sanitary and various technology aspects of the country which increases productive capacity of the country and increases potential growth, leading to an increase in the LRAS. As such, the people's life expectancy increases and hence their qualitative SOL increases.

As government spending increases, in the case of Singapore, the government's budget is used to upgrade the skills of the workers which will mitigate the issues of structural unemployment in the society. The previously low-skilled workers who might be retrenched or have to resort to low-paying jobs now can take part in skills training courses to upgrade themselves and be part of the expanding sunrise industries. This will reduce the rates of unemployment and income-gap between the people as the income generated can now be more evenly distributed. As such, the qualitative SOL of the people increases.

Since the country experiences an increase in actual growth from the rise in AD, and increase in potential growth from the rise in LRAS, it ensures a positive economic growth of the country. Also, the reduction in the income-gap of the people leads to a more inclusive growth which therefore improves the overall SOL of the people in the country.

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standard of living refers to the well-being of residents in the country. there are two aspects- material and non-material well-being.
greater government spending means that G increases. this leads to ad increasing and thus the ad curve shifts right, indicating positive actual growth. this means that citizens earn a higher income, thus improving the quantitative sol.

in singapore, government spent money to invest in the skillsfuture scheme which encourages singaporeans to improve their skills by attending courses as it gives the worker a certain amount of credit for them to use. when singaporeans improve their skills, they can contribute back to the society which means there is an inclusive growth. thus, improving the qualitative aspect of sol