Social Policy and Economic Policy Social Policy Essay
- Length: 10 pages
- Sources: 9
- Subject: Economics
- Type: Essay
- Paper: #46974090
Excerpt from Essay :
social policy and economic policy?
Social policy refers to guidelines, principles, legislation and activities that concern the way that humans live and interact. According to the Malcolm Wiener Center for Social Policy at Harvard University it refers to "public policy and practice in the areas of health care, human services, criminal justice, inequality, education, and labor."
Another way that one can perceive social policy is that it is a cluster of rules and conventions that hedge in society and direct its actions in a certain way as well as direct appropriation of resources amongst the people. Important areas of social policy for instance are the welfare state, social security, unemployment insurance, environmental policy, pensions, health care, social housing, social care, child protection, social exclusion, education policy, crime and criminal justice.
Particularities of these include attitudes towards euthanasia, abortion, and homosexuality, legality of prostitution, drugs, marriage, and divorce.
In all ways, all these different areas are shaped by tradition, ideology, and politics. To illustrate, policies on crime are directed by current conception of crime (at one time homosexuality was considered subversive). Social policy too has been directed by different historical happenings such as the Victorian concern of the poor driving changes in the Poor law and in welfare reforms by the British Liberal Party. The New Deal in the U.S.A., to, another social policy revolution was brought about by a combination of politics and historical circumstance ( Roosevelt's need for popularity / votes and the Depression) whilst the Bismarckian welfare state of 19th century Germany was largely the result of the politics of a domineering statesman.
Social policy differs according to country and in each region it is affected by local and supra-local political influence.
Economic policy and wider economic forces also important
Economic policy on the other hand refers to the government's economic decisions and actions. These include for instance government setting of interest rates and government budget as well as the labor market, and national ownership. In short, it refers to government intervention in public economic concerns. These policies are frequently driven by actions and decisions of the International Monetary Fund or World Bank as well as by political undercurrents.
Note that although social policies and economic policies are both driven by social and political factors, social policies are rarely (or to an insignificant degree) driven by economic factors
Social Policy & Economic Policy
Social policy and economic policy are different fields of policy that are promulgated by as governing body. Social policy refers to guidelines, principles, legislation and activities that concern the way that humans live and interact. . Examples include the welfare state, social security, unemployment insurance, environmental policy, pensions, health care, social housing, social care, child protection, social exclusion, education policy, crime and criminal justice.
Economic policy, on the other hand, refers to the government's economic decisions and actions. These include for instance government setting of interest rates and government budget as well as the labor market, and national ownership. In short, it refers to government intervention in public economic concerns. These policies are frequently driven by actions and decisions of the International Monetary Fund or World Bank as well as by political undercurrents.
Note that although social policies and economic policies are both driven by social and political factors, social policies are rarely (or to an insignificant degree) driven by economic factors.
The two have a symbiotic relationship in that money is needed to retain and maintain the social policies and that social policies inevitably almost always effect economic decisions (such s Franklin's new deal or the Poor Laws). Economic decisions are often driven by politics; social policies are not only impacted by but also impact politics. The result of certain Social policies, therefore, can often impel changes in economic decisions as was seen in Thatcher's government of restraint in order to curb inflation and the New Labor that compelled Government to hire private contractors. Keynesianism, on the other hand, formulated policies that encouraged spending.
WHAT IS ECONOMIC POLICY
Economic policy consists of the following:
Controlling inflation - Attempts to keep the money supply growing at a rate that doesn't result in inflation.
Trade policy -- this concerns tariffs, trade agreements and international conventions that regulate them.
Policies for creating economic growth
Policies for redistribution of income and/or property
Other policies include regulatory policy, anti-trust policy, industrial policy and technology-based economic development policy
In short, economic policy consists of government intervention in the economic running of the country. It concerns direct and indirect taxation; tax relief; regulating the supply and cost of money, especially interest rates; public borrowing; public spending; and regulating markets, especially labor market measures and competition policy
THE WAY ECONOMIC POLICY AFFECTS SOCIAL POLICY
Social policy has an intransigent effect on economic policies. September 2011 was a watershed in the way that many countries in the world felt about their security. Their objective was to increase national security and reinforce the power of their armies. Concerned countries needed to make certain economic policies in order to achieve these goals. A lack of money would force the government to restructure its social policies and to either cut down on them or ignore certain projects altogether, shelving them for a time when they have a greater plenitude of funds.
In a different way, economic policies may impact development of certain social policies since evolvement of circumstances such as reducing inflation and maintaining currency stability provides the situation of increased unemployment which leads to social policies created to deal with this situation.
Available resources controls planning and implementation of social goals. All social policies need money. Unemployment, for instance, needs income support as well as government investment in job opportunities and training.
THE WAY SOCIAL POLICY AFFECTS ECONOMIC POLICY
Social policy has an intransigent effect on economic policies. One recent example was the need for greater security in Britain (as a result of the September 2001 attack and increase in aggression). This has prompted the economic objective of greater resources for military spending as well as investment in national security. To achieve these social policy goals (of for instance a stronger national army and increased national security), government forms certain economic policies that include adaptations to the interest rate and money supply, tax and government spending, tariffs, exchange rates, and labor market regulations.
Changes in the money supply (promoted by economic policies) can also discourage or encourage people to work as well as government investment in programs such as education, training, and nursery places. These can each improve productivity and ability in the labor market
In this way, therefore, social policies and economic policies have a mutually rebounding influence on each other. Political and historical events prompt social policies that in turn impact economic policy. These in turn affect social policy in the areas of for instance inflation, unemployment, or economic growth. To elaborate: economic policies may hinder or stimulate inflation; they may decrease or increase unemployment; they may generate or diminish economic growth. This in turn leads to other social circumstances that generate further social policies as reaction and, in turn, create reactive economic policies. The whole is, therefore, a vicious circle.
Schools of Economic Thought: Keynesianism
Keynes argued that fiscal policy could be actively used to dispel depressions, recessions and slumps. The crux of Keynesianism is that increase in spending impels increase in earning which encourages even more spending hence further increase in earnings and so forth. This is so because one person's spending goes towards (and increases) another person's earning; that person, in turn, by spending his earning, boosts the earnings of another, and so forth. In the meantime, you have a normal, functioning economy.
Keynes's theory impelled a host of interventionist economic policies during the Great Depression and formed the essence of Roosevelt's New Deal which influenced Britain and other countries in dealing with their own related depressions. The Great Depression in all countries had compelled people to hoard their money causing the economy to stop at a standstill. Keynes's theory urged governments to step in and to encourage public spending, which the government did by both increasing the money supply and buy buying things itself. This was an example of Government intervention to ensure full employment and to ensure return of economy to original stability.
Keynes's theory differs from preceding economic traditions in that it advocates active involvement of the public in contradistinction to past thought which advocated laissez faire capitalism.
Keyniasism also believes that trends at the macroeconomic level will influence trends at the micro (or individual) level. To that end, therefore, cutting taxes and/or increasing public spending may stimulate further spending in particular areas and to growth in economy. On the other hand, spending cuts and increase in income tax leads to reduced demand particularly in the wake of, or during a recession.
Economic Goals of Keynesianism
Keynesian government is against the unfettered market existence. It urges government intervention when needed in order to boost public spending. Keynesianism reason for redistribution of wealth is not only…