Social Welfare and Industrial Policy
The social welfare of society is restricted using policies whose goal is to improve the standard of living and opportunity by providing services and benefits for those at a physical or financial disadvantage. Social policy costs account for between 50-60% of government spending.
The social welfare policies have a positive effect on society by providing healthcare, life expectancy is increased, housing schemes have been put into place and children and older persons are cared for.
The government supports new industries by following industrial policy and using analytical planning to help identify high growth industries and potential holdups in supply. Governments can put restrictions on foreign imports using import taxes or by financially supporting firms which are already in operation.
Industrial policy is the government’s plan to boost economic growth by improving industrial competitiveness by making financial and foreign currency decisions on the needs of the business including increasing government spending on transport and communication infrastructure, keeping interest rates relatively low and keeping the pound at a competitive level on the foreign exchange markets.
The management and stabilisation of an economy is achieved through the use of policies that try to satisfy the interests of all citizens and must seek to identify, embody and promote the values and interests of its citizens through the use of political parties. Economic activity is influenced by the state in the UK through the use of taxation and interest rate policies, public spending on goods and services and regulation. The government may solicit advice from a number of sources including the civil service, special interest groups and academics. The ultimate aim of government economic policy is to stimulate economic growth, provide full employment for its citizens and bring price stability.
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