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State and explain what you consider to be the three most important economic aims of the Irish Government - Leaving Cert Economics - Question b - 2010
Question b
State and explain what you consider to be the three most important economic aims of the Irish Government. Outline two examples of possible conflicts between governm... show full transcript
Worked Solution & Example Answer:State and explain what you consider to be the three most important economic aims of the Irish Government - Leaving Cert Economics - Question b - 2010
Step 1
State and explain what you consider to be the three most important economic aims of the Irish Government.
Answer
The three most important economic aims of the Irish Government are:
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Achieve Full Employment: This aim is crucial as it aims to reduce unemployment levels, ensuring that more individuals are employed, which in turn boosts economic activity and living standards. To achieve this, the government may implement policies that promote job creation in various sectors, encourage foreign direct investment, and support small and medium enterprises.
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Achieve Moderate Economic Growth: The government focuses on maintaining a steady and sustainable rate of economic growth. This is essential for improving overall economic health, ensuring that the standard of living rises without leading to inflationary pressures. Fiscal and monetary policies can be adjusted to stimulate growth when needed while avoiding situations that could lead to overheating of the economy.
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Control Government Finances / Reduce Borrowing and Manage the National Debt: Managing public finances is critical to ensure long-term economic stability. The government aims to reduce excessive borrowing by increasing tax revenues and controlling public expenditure. This allows for better investment in public services and infrastructure without leading to unsustainable debt levels.
Step 2
Outline two examples of possible conflicts between government economic aims/objectives.
Answer
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Control of National Finances vs. Full Employment: While full employment is a priority, achieving this may require increased government spending, which could conflict with the aim of controlling national finances. For example, efforts to boost job creation may lead to higher budget deficits if not carefully managed.
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Balanced Regional Development vs. Economic Growth: Promoting balanced regional development aims to ensure that all areas of the country prosper. However, this can sometimes conflict with the goal of maximizing economic growth in more developed regions, where investments tend to yield higher returns. The government must find a balance between investing in less developed areas and supporting growth in already prosperous regions.