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6. (a) (i) State and explain four current economic aims/objectives of the Irish Government - Leaving Cert Economics - Question 6 - 2014
Question 6
6. (a) (i) State and explain four current economic aims/objectives of the Irish Government. (ii) Outline two possible conflicts that could arise between some of t... show full transcript
Worked Solution & Example Answer:6. (a) (i) State and explain four current economic aims/objectives of the Irish Government - Leaving Cert Economics - Question 6 - 2014
Step 1
State and explain four current economic aims/objectives of the Irish Government.
Answer
The current economic aims of the Irish Government include the following:
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Promoting Economic Growth: The Government aims to achieve sustainable economic growth by fostering a favorable business environment which encourages investment and job creation.
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Reducing Unemployment: A key objective is to reduce unemployment levels, ensuring that more citizens can find work and contribute to the economy. This is often targeted through various employment schemes.
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Budgetary Stability: Ensuring the public finances are sustainable and that deficits are reduced over time is crucial for long-term economic health. This involves responsible management of taxation and expenditure.
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Addressing Income Inequality: The Government also aims to reduce income inequality through progressive taxation and social welfare programs, ensuring that economic benefits are distributed more equitably across society.
Step 2
Outline two possible conflicts that could arise between some of these Government aims/objectives.
Answer
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Economic Growth vs. Budgetary Stability: Aggressive efforts to promote economic growth can lead to increased public spending, which may conflict with the aim of maintaining budgetary stability if such spending causes budget deficits to widen.
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Reducing Unemployment vs. Addressing Income Inequality: While efforts to reduce unemployment may involve low-skill jobs that pay less, this could potentially conflict with the objective of reducing income inequality, as these jobs may not provide a living wage.
Step 3
Discuss arguments for and against the privatisation of state assets.
Answer
Arguments for privatisation include:
- Increased Efficiency: Private companies may operate more efficiently than the public sector due to profit incentives.
- Revenue Generation: Selling state assets can generate significant revenue for the government, which can be used for public services.
Arguments against privatisation include:
- Loss of Public Control: Privatisation may lead to a loss of control over essential services, which could negatively impact public welfare.
- Increased Costs: Such measures may lead to increased costs for consumers as private companies seek profit maximization, resulting in services becoming less affordable.
Step 4
Outline four possible economic consequences for the Irish economy arising from the austerity measures introduced in recent Irish Government budgets.
Answer
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Decreased Consumer Spending: Austerity measures often lead to reduced income for citizens, which can cause a decline in consumer spending and slow economic growth.
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Increased Unemployment: Austerity often results in public sector job cuts, leading to higher unemployment rates and reduced household income.
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Investment Reductions: Tight budgets can lead to cuts in government investment, impacting infrastructure development and long-term economic productivity.
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Social Unrest: Prolonged austerity measures can result in social unrest due to rising public dissatisfaction, which may lead to political instability, harming investor confidence.