Fiscal Policy, Globalization And International Trade Business Essay (Essay Sample)

“Fiscal Policy, Globalization and International Trade”
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Fiscal policy is the utilization of government funds and revenue especially taxes to control and impact the national economy. John Keynes a Briton, came up with this theory that elaborated the different ways that a government can actively influence the macroeconomic levels of productivity by raising or lowering the general taxation levels and the public expenditure (Shoup, 2017). The impact of this theory prevents the occurrence of economic inflation, skyrockets the levels of employment, regulates and maintains a healthy money value. In the past, the USA has evaded an economic depression by passing a taxpaying relief act in January 2013.
In 2018, the United Kingdom implemented fiscal policy. This policy was implemented by the government with the aim of positively influencing the national macroeconomics and avoid the occurrence of inflation which might crumble the national economy. Statistics show that in 2017, the budget of the United Kingdom had a fiscal deficit of 46 billion Euros which is about 2.3% of the GDP, there was net debt in the public sector which totaled to 87% of the GDP, the total government debt of 1.8 trillion euros and the payment of the debt interest stood at 48 billion Euros. Consequently, the United Kingdom government expenditure summed up to a total of 814 billion Euros whereby pensions were allocated 165 billion euros, healthcare sector totalled to 150 billion euros, Education sector allocated 85 billion euros and the defence allocated 47 billion Euros.