Having difficulties with essay on the 2009/08 Federal Budget (1 Viewer)

[bawd]

The task is as follows:

DUE: Tuesday 1st July, 2008. But I want to get it finished by Sunday 29th (tommorow!) so I can edit on Monday.

Essay Question:

1. What is the Federal Budget?

2. Choose TWO influences from the list below and describe how 2008 budgetary policy was influenced by:

• political parties
• Interest groups
• Business
• Environmental Groups
• Unions
• Welfare Agencies
• International

3. Analyse the likely effect of the 2009/09 Federal Budget on:

• the reallocation of resources
• the redistribution of income and
• economic activity in the Australian economy

NB: The Analysis section should be the major part of the assessment
Word Limit: 1800 words

What I've done so far:

In the first paragraph, I have given a defintion of the Federal Budget and talked about the surplus outcome of the 2008/09 Budget indicated by the contractionary macroeconomic fiscal policy stance taken up by the Rudd-Labor Government.

I'm having trouble with sections 2 and 3, especially 2 as I do not know which two groups to choose and I have no idea which groups have had significant impact on the 2008/09 budgetary policy, so someone please help here.

The biggest section of the essay, part 3 is scaring me as I have a limited idea of how the Budget is likely to affect the reallocation of resources, income and economic activity, so any Economics genius, feel free to partake!

I've read all the articles posted up by Without Wings in the thread on the 2008/09 Federal Budget as well as looked at the Budget Overview and Budget at a Glance papers, and Cambridge Preliminary Economics.

Any help will be greatly appreciated and you will get free cookies. :uhhuh:

 

[zahmad]

Year 11 task on budget?

 

[munchiecrunchie]

by reallocation of resources, all that is referring to is where has spending been cut, and where has spending been increased.

redistribution of income - examples of this include means testing the baby bonus, increases in the luxury car tax and capital gains tax, and taxation reform (nb tax free threshold has increased too). the gist of this is an equitable distribution of income is aiming to be achieved.

economic activity - basically, liked you've already said, the govt has a contractionary stance on fiscal policy, so this means that economic activity is going to decrease. think about it in terms of the circular flow of income - the govt, by having a surplus, is increasing its leakages, so that will contract the economy.

some other points that you may want to talk about, although more related to year 12 topics:

- lower govt spending will have a dampening effect on inflation, and it is predicted that by 2009 inflation will fall to 3.25%
- lower economic activity will mean that businesses may have to employ less resources, resulting in higher unemployment



so . . . wheres my cookie . . .

 

[bawd]

Year 11 task on budget?

Yep.

by reallocation of resources, all that is referring to is where has spending been cut, and where has spending been increased.

redistribution of income - examples of this include means testing the baby bonus, increases in the luxury car tax and capital gains tax, and taxation reform (nb tax free threshold has increased too). the gist of this is an equitable distribution of income is aiming to be achieved.

economic activity - basically, liked you've already said, the govt has a contractionary stance on fiscal policy, so this means that economic activity is going to decrease. think about it in terms of the circular flow of income - the govt, by having a surplus, is increasing its leakages, so that will contract the economy.

some other points that you may want to talk about, although more related to year 12 topics:

- lower govt spending will have a dampening effect on inflation, and it is predicted that by 2009 inflation will fall to 3.25%
- lower economic activity will mean that businesses may have to employ less resources, resulting in higher unemployment



so . . . wheres my cookie . . .

Thank you. It's starting to make sense. Anyone have ideas on part 2?

As for your cookie...uh...come pick it up from my cupboard.

Although you may find someone has already bitten into it...

 

[munchiecrunchie]

lol.

for part 2 i'd probably choose enviro groups and interest groups.

alot of govt policy has been directed towards environmental management, and some of that initiative has been influenced by lobby groups. an example of an enviro initiative is increased investment in toyota hybrid cars.

also, another good one to comment on would be the "binge drinking crisis".
see if you can find a lobby group in support of govt action to control this - examples of govt policy on this are alcopop excise, and binge drinking ads.

you could also tie this in with the concept of the mixed market economy, and how the govt intervenes in the production process to achieve socially desirable outcomes, ie to prevent market failure.

good luck with your essay, just remember to incorporate both the economy theory and the current budget examples.

 

[bawd]

lol.

for part 2 i'd probably choose enviro groups and interest groups.

alot of govt policy has been directed towards environmental management, and some of that initiative has been influenced by lobby groups. an example of an enviro initiative is increased investment in toyota hybrid cars.

also, another good one to comment on would be the "binge drinking crisis".
see if you can find a lobby group in support of govt action to control this - examples of govt policy on this are alcopop excise, and binge drinking ads.

you could also tie this in with the concept of the mixed market economy, and how the govt intervenes in the production process to achieve socially desirable outcomes, ie to prevent market failure.

good luck with your essay, just remember to incorporate both the economy theory and the current budget examples.

Thank you very much again.

I'm going to try what you just said with the Enviro and Interest groups.

Thank you again.

I'm still open to any more interesting ideas and useful facts from everyone, so keep them rollin'!

 

[zahmad]

Get the Yr 12 textbook....

 

[Zrap]

dude, just know fiscal policy and chuck in a few budget shit and you're sweeet

 

[michael1990]

Have a good read of this and it should help your understanding of some economic terms and help a great deal with the Budget questions you have.

http://www.leadingedgeeconomics.com.au/publications/updates.php#Economics

Anymore questions, do ask.

 

[bawd]

Have a good read of this and it should help your understanding of some economic terms and help a great deal with the Budget questions you have.

http://www.leadingedgeeconomics.com.au/publications/updates.php#Economics

Anymore questions, do ask.

Oooo. Thank you, sir.

 

[michael1990]

Oooo. Thank you, sir.

You're welcome mate.

 

[Petey0599]

Hey,

I got issues with the interest groups aspect, to balance it all out I am finding to be difficult. Due to defence being the most dominant I am finding, how should I incorporate and balance defence, government agencies etc?

Cheers

Pete