Why Do Governments Find It So Hard To Control Public Expenditure? :: essays research papers fc

Why Do Governments Find It So Hard To get over Public Expenditure?     Since the 1970s procession public expenditure has become a politicallysalient issue, with the focus being on the difficulties experienced in nerve-racking tocontrol it. In order to answer a question concerning why governments find ithard to control public expenditure it is setoff necessary to looking at the reasonsfor the growth in public spending. There are three processiones which attempt togive reasons for growing public expenditure which I intend to scrutinise, theseare, the societal system approach, the political system approach and thegovernmental system approach. An evaluation of these approaches should in turnshed light as to why governments find rising public expenditure hard to control.Following this approach which gives a wide outlook on the problems facinggovernments in controlling public expenditure, I exit look at the post 1979conservative government as it in particular ta rgeted controlling expenditureupon taking office.     Under the societal system approach one reason why a growth in publicspending can be seen to have occurred is due to Wagners law of increasing assign activity. Wagners claim is that as per capita real income increases inparticular nations, they will spend a higher proportion of national productthrough government. As Wagners reasons for change magnitude public expenditure tendto be centralised around industrialisation and its associated effects it is notsurprising to find that he thought the density of urban living would increasesocial frictions to such an extent that the government would be called in tohandle it. That is to say, urban living would result in the need for intensifypolice protection and other forms of government regulation. Wagner alsobelieved that with growing industry certain investments would require so muchcapital that the state would have to cater it. He thought there would also bepublic g oods that may not be in the interests of an entrepreneur to provide.     There are counter arguments to Wagners suggestions, the first of theseis that it could be argued that increased density would provide opportunitiesfor economies of scale. Thus, the proximity of people to one another couldresult in networks of personal support, lessening the need for public services.Secondly, stubborn to Wagners arguments for public good provision by the state,it is possible to show other countries that either do without it, or provide foruser charges. This shifts the burden from general revenues to those who clearmost directly.     Another reason for rising government expenditure under the societalsystem approach is expressed via Tarschys demonstration effect. He suggeststhat the coming of tv "has led to increased awareness of the standard of