Respond to a classmates discussion (cains post) and explain whether you agree or disagree and take the conversation deeper and elaborating why you agree or disagree.
Include a Biblical integration and 3 Sources. Do not forget to cite which Bible used and to include it on the reference page. This should be in APA format.
The federal government has been in positions of budgeting issues over and over throughout history. As a result of these issues, multiple republican presidents have attempted to move some of the fiscal responsibility away from Washington and place it on the states (Rubin, 2008). This push has never been successful, due to disagreements between parties. The republicans and democrats have been fighting over budgets for years (Rubin,2015). Partially due to this, the government has continued to take on debt and pressures associated with such a large budget. The pandemic created a more intense set of pressures, debts, and problems in the public sector, or the part of the economy controlled by the government.
Practical Pressures Affecting Public Sector Budgeting to Delivering Public Goods and Services
The federal debt is now 105% of the gross domestic product and rapidly rising due to the pandemic (Douglas & Kravchuk, 2020). The high debt the federal government has accrued has put additional pressure on public sector budgeting. Transparency is probably the biggest pressure seen in correlation with budgets. Individuals want to see how tax dollars are spent. Public scrutiny is fueled by many things such as the political-economy approach, which focuses on the characteristics of political institutions. Political conditions, such as electoral competition, political ideology, checks, and balance tools, political rights to name a few (Citro et al., 2021).
The Pandemic created pressures never before seen. Local government who had limited responsibility in the delivery of goods was now being held responsible by the people. Services were expected despite the pandemic and people watched the news about the economy daily. The government was in a position where there was no room for market failure. The government was receiving pressure to assure that there was a delivery of public goods and services while protecting the budget. Eventually, pressure to keep market failures from occurring and efforts to maintain a budget came to a head.
Public sector budgeting attempted to provide transparency and admitted ensuring there were no market failures and needs were met that the budget would have to be reworked. This resulted in higher debts Many claims the increased debt, increased inflation, and lack of particular goods is a market failure on the part of the government. The government feels otherwise as there were stimulus checks funneled to the public to keep the economy afloat (Foladori & Cypher, 2021). This was a prime example of the public sector needing numerous, diverse needs met, and the government determining the best way to spend a finite level of income.
Consequences of Two Externalities and Their Impact on Public Sector Budgeting.
There are both positive and negative externalities. Examples of negative may be air or water pollution and positive may be infrastructure development. The pandemic created a different place over this last year, since the budget pressures of this time were addressed, it is important to address the consequences of externalities during this time.
Vaccination is considered a positive consumption externality (Mikesell, 2018 p. 10). The goal of the government in positive externalities is to encourage these or control them if they create market inefficiencies. The pandemic has created major economic issues as the world has shut down. The vaccine has the opportunity to decrease the effects and spread of COVID and as a result open the world back up as the vaccine decreases the spread and seriousness of the illness (Lundstrom, 2020). The biggest impact of this and any other vaccine is that it can help control the spread allowing people to work as normal, go out as normal, therefore keeping the economy moving normally, which helps budgets stay on track because taxes are coming in normally and the economy is flowing.
A negative externality is passive smoking. While this externality has been around years it has only been acknowledged in the last few decades. Passive smoking increasing health issues in both the smoker and others around the smoker. This negatively affects the public sector budget as it increases healthcare costs. In a world that is currently experiencing higher than normal medical costs, this is just one more issue. The increased health needs for these individuals, the lack of ability to work all drain on the government’s resources.
Practical Way to Study the Fiscal Impact of Public Sector Budgeting
The economic crisis has only made more people pay attention to the government budget, which has highlighted the need for transparency (Alcaide et al., 2016). It is important that along with transparency that justification is also available (Spicer, 2017). Following the way, budgets have been handled for several years, and then studying the cause and effect as well as the problems over time in correlation with market failures and externalities is the best way to study budgets in the public sector. The Bible states that “for whatever was written in earlier times was written for our instruction, so that through perseverance and the encouragement of the Scriptures we might have hope” (King James Bible, 1769/2017, Romans 15:4). Reviewing what did and did not work in the past and working through the reasons makes the most impact at is allows real application theories.
References
Alcaide Muñoz, L., Rodríguez Bolívar, M. P., & López Hernández, A. M. (2016). Financial incentives and open government: A meta-analysis. Information Polity: The International Journal of Government & Democracy in the Information Age, 21(2), 189–209. https://doi.org/10.3233/IP-160383
Citro, F., Cuadrado-Ballesteros, B., & Bisogno, M. (2021). Explaining budget transparency through political factors. International Review of Administrative Sciences, 87(1), 115-134. https://doi.org/10.1177/0020852319847511 (Links to an external site.)
Douglas, J. W., & Kravchuk, R. S. (2020). Introduction to symposium: Modern money theory and public budgeting and finance. Public Budgeting & Finance, 40(3),35. https://doi.org/10.1111/pbaf.12253 (Links to an external site.)
Foladori, G., & Cypher, J. M. (2021). Pandemic perspectives on medicine and militarism. Null, 11(2), 252-270. doi:10.1080/21598282.2021.1924828
King James Bible. (2021). King James Bible Online. https://www.kingjamesbibleonline.org/King-James-Version/
Lundstrom, K. (2020). Coronavirus pandemic-therapy and vaccines. Biomedicines, 8(5), 109. https://doi.org/10.3390/biomedicines8050109 (Links to an external site.)
Mikesell, J. L. (2018). Fiscal administration: analysis and applications for the public sector. (10thed): Cengage Learning. ISBN: 9781305953680.
Rubin, I. S. (2008). Public budgeting: policy, process and politics: Routledge. ISBN: 9780765616913.
Rubin, I. (2015). Past and future budget classics: A research agenda. Public Administration Review, 75(1), 25-35. doi:https://doi-org.ezproxy.liberty.edu/10.1111/puar.12289
Spicer, Z. (2017). Bridging the accountability and transparency gap in inter-municipal collaboration. Null, 43(3), 388-407. doi:10.1080/03003930.2017.1288617
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