Essays on The UK Economic Policy in Relation to Housing Market Case Study

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The paper "The UK Economic Policy in Relation to Housing Market" is a perfect example of a micro and macroeconomic case study.   Governments have all along been directly involved with the ways for which economies operate. In fact, it is assumed that economics integrates substantial levels of politics in the course of ensuring the future development of government (Labonte, 2010). Economic growth and development signify the improvement in the amounts of both goods and services that are generated by a given economy in relation to such important measures as the Gross Domestic Product (Labonte, 2010).

The fundamental role of this paper then rests with identifying the numerous effects different governments have on the overall economy of a country and later on, provides a significant discussion on the existing UK economic policy on the housing market. Effects of Government on the Economy There are numerous ways through which an existing government might affect the overall economy of a country. These items are discussed as follows; First, the government is engaged in the direct generation of both goods and services that might include amongst other things road networks and national defence mechanisms (Labonte, 2010).

On the contrary, for most governments, it is ascertained that less than half of the entire federal spending habits are entirely committed to the manufacture of both goods and services. Secondly, the government affects the economy since it engages in the transfer of income through two platforms that include; the underlying tax system and the subsequent outlays (Labonte, 2010). In essence, the most known perception of this activity is noted in the transfers made across the different income classes in conformity to a progressive income tax system, means-tested rewards that are mostly attributed to as the vertical redistribution process.

In the horizontal redistribution process, the transfers are made in relation to the different income sub-sets (Labonte, 2010). For this redistribution mechanism, the elderly are deemed to be the core beneficiaries of the entire system through such important initiatives as the social welfare support. Thirdly, the government engages in the collection of taxes; an activity that changes the entire economic behaviour for most cases (Labonte, 2010).



Labonte, M. 2010. The size and role of government: Economic issues. Congressional Research service, Retrieved on December 30, 2015 from

Riley. G.2015. Study notes: UK housing market-The housing shortage”. Retrieved on December 30, 2015 from

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