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    Economics-based decision-making in government

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    Economics-based decision-making in government

    Economics-based decision-making in government has long been the basis for deciding to privatize or not. Instead of comparing profits, governments can use things like return on investment or lowest cost to customers (citizens). As costs shrink so does the need for taxes. Economics decides how a State or County can receive financing like bonds and how it will cost them in interest. What programs will generate the most return and therefore should be funded. "Return" can be defined in non-monetary ways like X amount of investment will over 5 years reduce homelessness by Y%.

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    https://brainmass.com/economics/monetary-economics/economics-based-decision-making-government-8617

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    Hello,
    Economics-based decision-making in government has long been the basis for deciding to privatize or not. Instead of comparing profits, governments can use things like return on investment or lowest cost to customers (citizens). As costs shrink so does the need for taxes. Economics decides how a State or County can receive financing like bonds and how it will cost them in interest. What programs will generate the most return and therefore should be funded. "Return" can be defined in non-monetary ways like X amount of investment will over 5 years reduce homelessness by Y%.
    Some examples of decisions that a government manager may face with finite resources and 'infinite' problems follow:
    1) Should we build a prison, school, or hospital? What is the cost and benefit to society?
    2) Should we purchase all of our police cars from Ford or purchase from the lowest bidder, even if that bidder is from overseas?
    3) Does the rent paid by the Federal Government outweigh the risks of building the hazerdous waste site in our county?
    4) Should we allow gambling in our county? Risks versus income.
    5) Do we expand our after school programs or hire more policemen?
    As you can see, many of these decisions must be made with values other than monetary values. That is why we have elected leaders to lead society in pursuing these values. However, without any economic analysis, government can cause more problems in the near future as counties, cities, and states face bankruptcy and companies leave.
    Hope this helps.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 4:48 pm ad1c9bdddf>
    https://brainmass.com/economics/monetary-economics/economics-based-decision-making-government-8617

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