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Aspects of Politic

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CHAPTER 1

Introduction

Each day, to millions of Americans, comes with the never-ending brunt of unemployment, hunger, and homelessness. The measure of the inadequacy in the systems in the United States is quite great. The political elites and the capitalist class are endlessly pursuing profits. Their profits come first while the concerns of the people of getting employment, accessing quality health care and quality education come second.

One of the responsibilities of economic and labor market policies in the United States is to ensure that the people of America receive better economic results in terms of stable jobs, low rates of unemployment, good working conditions, and high remuneration in the labor market. However, the jobs that are available to most of the American population are not decent and stable. Despite the rise in the number of jobs, the quality of these jobs has continued to decline. Many Americans who are employed ironically do not receive such benefits as health cover, security, retirement, and decent wages. As a result, the human need and suffering continue to persist. The economic and labor policies therefore in America are yet to define what is happening in their systems.

The setting up of social programs and the formulation of the different policies in the United States was an effort towards the alleviation of these perennial problems of unemployment. Therefore, the solution to these problems was supposed to spring from the public administration and social programs systems.

The policies supposed to be implemented by the public administration and the social programs systems are mainly directed to the poor and the needy population. Unemployment is rampant within this category. Besides, their living conditions are quite pathetic. This is also the population, which is hard hit by hunger. The interception of the political class however in the administration of these aids to the people has resulted in different results. The rich have continued to expand their wealth at the expense of the poor.        

In 2002, it was obtained that the number of Americans living below poverty level was one million, seven hundred thousands. Combined with the previous findings, the total Americans living below poverty level was thirty four million, six hundred thousands. This represented one eighth of the population. Out of this, the number of children was over thirteen million. The poverty rate of the children in United States as well as the life expectancy is the worst in all the industrialized nations in the world.

The poor also have a worsening plight. Food insecurity has also hit America hard. A review of the possible cause of this revealed that the political class is involved in the legislation and the administration of the policies that are meant to reach these vulnerable groups. The problem was found to be the conflict of interest where the few at the top want to continue enriching themselves at the expense of the poor at the bottom in the state of Victoria. Therefore, between the policy makers and the people, the public administration is supposed to form a good bridge. 

The purpose of this research is to determine the following: If the United States would benefit socially and economically from passing federal legislation, establishing proper channels of economic and budgetary policies to the people at the needy areas. To answer this question, the following sub-questions are:

Does the political involvement in public policy formulation affect public administration?

and social programs?

Does the fiscal stance in public administration and social programs lead to unemployment, high levels of poverty index, absence of quality health care, and food insecurity?

Does the formulation of policies affect the implementation of the social programs in West Virginia State?

Limitations

Due to the nature of research, it was not possible to address the cause and the effect of economic downfall and unemployment in the United States government. The research was therefore only limited to the identification of the systems for policy formulation, the relevance of the formulated policies and the consequences of the same policies in the people of America.

Assumptions

Administrators employed with the state of West Virginia have addressed the basic underlying determinants of economic and budgetary policies as well as procedures to follow and discuss regarding this investigation.

Significance of the Study

The study is important in ensuring that the policies that are relevant in improving the lives of the people of America are formulated and rightfully implemented. This implies that fairness is achieved in the distribution of resources. The poor people, the needy people and the unemployed population will benefit from this study since they will be able to see the political contribution in their misery so that they would be making wise decisions in electing the leaders who understand their plight and are willing to. From this study, the findings will be able to communicate to the political class that incase there is misery among the poor; it is because of weak systems of policymaking and the public administration.

Research Design and Methodology

The research will obtain the data bearing policymaking, the fiscal and financial analysis reports and the health and social programs established in the state of West Virginia. The statistics of the budgetary allocation to the state will be required. The policies that have been formulated in the state that help improve the status of employment and reduce the poverty levels are also obtained from the records of the state of West Virginia. Finally, the research would require the report on the implementation of the same policies along with the different constraints experienced.

The first sub-question is designed to use secondary quantitative historical documents of economic and budgetary policy implementation in the state of West Virginia since 1950, government budgeting documents from years 2005 through 2009 and legislative policy on wartime funding. The quantitative data must include a breakdown of line items addressing expenditures to and from the Social Security Administration and individual income taxes. The information is located and secured from the Department of Government and Accountability Office and Congressional Budget Office via government website. The data will be interpreted based on a deductive reasoning.

The second sub-question is designed to use secondary qualitative documents addressing the use of entitlement and discretionary expenditures. The qualitative data must include interviews and questionnaires from various demographics and their view on the appropriation and positive and negative use of expenditures. The information is located and secured from the Journal of Appropriations and the Journal of Timekeeping. The data will be interpreted based on an inductive reasoning.

Chapter 2

Review OF Literature

Introduction

The first paragraph introduces the content of the chapter by explaining what the reader can expect from the information provided.

Economic policy

Elections are part of the economic policy. Money drives the elections. The elections therefore have a crosscutting effect on entirely all the public policies. In order to shoulder this big responsibility, the economic policy has a number of other policies falling under it. These policies include the fiscal policy, the monetary policy, and the regulatory policy. Each of these policies is charged with a particular responsibility. The money policy for instance is set to determine the amount of money or the size of the monetary supply in the state. The manner in which the state government on the other hand, would do its spending and collect the taxes as well as allocate the revenue will be the responsibility of the fiscal policy. Apart from the above duties, the economic policy also has the regulatory policy that is charged with the responsibility of regulating the labor relations, consumer protection, businesses, and rules of international trade.

The actions taken by the government in the economic field is called economic policy. These Actions would include the strategies for establishing the interest rates and the drafting of Government budget, the systems in the national ownership, the labor market and the International monetary fund has an influence in such policies. Apart from the international Institutions, the party policies, and the political beliefs also have an influence on such policies.

Types of economic policy

There are different types of economic policies. These include:

The policies formulated to stimulate the economic growth, the policies meant for development economics, policies meant for stabilization of macro economy that ensures the growth in the supply of money while curbing inflation, the policies for the redistribution of wealth, income, or property, among others (Hetherington and Keefe 2007).

Regarding the macroeconomic stabilization policy, its duties are to fuel economy out of recession or regulate the supply of money in a bid to curb excessive inflation. Using the government spending as well as the taxes, the fiscal policy operates in guiding the economy. When the deficit in the economy occurs, the size of the deficit is called the fiscal stance. Government income is collected using the tax policy

The goals of policies

Specific objectives are targeted by the economic policy. The examples of these objectives are the economic growth, the inflation, and the unemployment. The tools used by the government to meet these goals include the money supply, the tariffs, the interest rate, the labor market, the government spending, and the exchange rates.

Budgetary Policy

The efforts of the government to ensure equilibrium in the budget are called budgetary policy. The aim of the budgetary policy is to cut down the public debt

Social Security

Social security is a social insurance program. The program benefits individuals with Socially recognized conditions. The benefits it provides are the social protection. The socially Recognized conditions that are highlighted include the unemployment, poverty, disability, and old age.

The government accomplishes these tasks through the social insurance, the maintenance of income, the services, and the basic security. Under insurance, the people enter into insurance schemes whereby they make some monthly contributions. From these contributions, the people would have a chance of receiving benefits or services. Among the services received are Pensions, survivor benefits, disability, and unemployment insurance are the examples of the services received. Under income maintenance, the cash is distributed when there is interruption in one’s employment due to retirement, unemployment, or disability. Alternatively, the social security may offer services like the medical care to the individuals.

Policies have also been formulated in the United State of America to take care of the social welfare of the citizens. This has seen a dramatic expansion in the net of the social security of the people of America. The net begun in the last century with social groups composed of the religiously based charities, local communities, and families. This was coming to change after the great depression that was experienced by the United States in 1930s. The social welfare net saw its first change when President Franklin D. Roosevelt signed the New Deal that was able to create Social Security in 1935. The new deal also marked the inauguration Aid to Dependent Children. This social welfare program has grown and expanded to be one of the modern day social welfare programs. The Aid to Dependent Children was then followed by another great expansion, which was inaugurated during Johnson administration. This great expansion was because of the different programs that were set up. These included the Medicare, the public housing, and the Medicaid. After the inauguration of these programs, the state of America’s welfare remained unaffected for along period. This was not until 1996 during the President Clinton’s administration. In his administration, the Republican congress had passed and President Clinton signed a reform law in the social welfare that has elicited controversy until now within the public policies. While conservatives are out celebrating the sweeping effects of the law in addition to the drastic drop in the number of welfare cases that have been seem following the law, the liberals on the other hand are busy opposing most of the good changes that have been seen because of low unemployment and improved economy.

Individual Income Taxes

This tax is levied on the individual’s income total. Some deductions are however made before the levy. The basis of collecting this tax is called pay as you earn. At the end of the tax period, called tax year, small corrections on this tax are made. The corrections that are made are in two forms. The first form involves those taxpayers who have paid less in the course of the tax year. For them, the correction is to make payments to the government. The next form involves the taxpayers who have made over payment. For them, they will receive the tax refunds from the government at the end of the tax year (Honadle et al 2004).

Entitlement Expenditures

The permanent appropriations fund the Medicare, social security, and Medicaid expenditures. This constitutes the mandatory spending. Out of the expenditures, the social security and the Medicare are categorized as entitlements. The entitlements imply that the people who are entitled to these benefits are only those that meet the required eligibility requirements. Most of these people eligible to the entitlements remit their taxes all through their working lives. The programs including the food stamps also constitute the appropriated entitlements. On the other hand, some mandatory spending does not fall under entitlement program. Example of these expenditures is the congressional salaries

In the financial year 2008, the mandatory spending formed 53% of the total federal expenditure. An additional net interest payments of 8.5% also existed. Following the demographic trends, where the number of workers is continuing to drop relative to those entitled to the benefits, the mandatory spending is likely to increase as a GDP’s share. In 1960, the number of workers per retiree was 5.1. In 2010, the number came down to 3.0. It is projected that this number will further decline to 2.2 by 2030. Another determining factor of the entitlement expenditure is the per capita rate (Friedlob and Folger 2003).

Both the social security and Medicare are likely to plunge into huge deficits in the 21st century due to the unfavorable arrangement of per-capita interest rate increase and demographics. The ways of addressing these persistent fiscal imbalances include making the reforms to the programs, cutting the discretionary programs, or raising taxes levied to the people. The consequence of unresolved imbalance is the risks of turning the dollar weak.

Medicare is a program that started in 1965. It has expanded since then and about forty five million people access the program in 2009. Out of these people, thirty eight million are aged while seven million are disabled. Within Medicare are hospital insurance, supplementary medical insurance, medical advantage, and the part D program. These programs are funded differently. 2.9% tax on the earnings is dedicated for hospital insurance. The tax is share equally between the workers and the employers (Friedlob and Folger 2003).

Beneficiary premiums on the other hand fund the supplementary medical insurance. Both the hospital insurance and the supplementary medical insurance trust funds fund the medical advantage. The funding of part D is incorporated in supplementary medical insurance trust fund. The financing of part D come in form of general revenues and premiums constituting 75% and 25% respectively. The Medicare and Medicaid expenditure is expected to keep increasing. At the same time the enrolment of persons in Medicare is projected to rise from forty seven million in 2010 to 80 million in 2030 (Friedlob and Folger 2003).

Discretionary Expenditures

The government has two types of spending- mandatory and discretionary. The discretionary spending includes the expenditure in highway projects, army, Coast Guard and FBI. The discretionary spending constitute about one-third of the total federal spending. It is the decision of the congress that determines the annual allocation on these programs.

Revenue through Taxes or Other Sources in the State of Virginia

In the United States, the revenue is collected mainly through the taxes. The taxes are imposed both at the local government, autonomous and at the federal government. These taxes are levied on property, income, imports, payrolls, estates, and various fees. The federal, some local governments, and the states impose the taxes on the individual’s net income. The tax rules are used to determine the taxable income. Many business expenses reduce the taxable income. For individuals, personal allowances, some non-business expenses like state and local taxes, mortgage interest, medical and charitable contributions reduce the taxable income (Honadle et al 2004).

The rates of federal taxes range from 15% to 35% of the taxable income. On the other hand, the local and state rates of tax vary according to the jurisdiction. All state governments and the federal government levy payroll taxes. The payroll taxes include Social Security and Medicare taxes that are levied on both employees and employers, at a collective rate of 15.3% (13.3% for 2011). Social Security tax only affected the first $106,800 of wages in 2009 until 2011 (Honadle et al 2004). Property taxes are obligatory in most local governments and many special purpose authorities based on the fair market value of property. Property tax is generally imposed only on realty, though some jurisdictions tax some forms of business property. Property tax rules and rates vary widely.

State of West Virginia Deficit

According to state budget for the financial year 2010, as reported in December 2009, the state of West Virginia had an estimated deficit of $ 120 million. In 2009, the state of Virginia ended the financial year with a surplus of $68 million. Besides, the state had the Rainy Day Fund of $500.

The full amount allocated for federal stimulus also had not been spent. When the West Virginia Legislature was called for the fourth special session in 17 November 2009, its focus was on municipal pensions and the state gas. There was no interest in concentrating on the state deficit (Honadle et al 2004).

State revenues for the financial year since July 1, 2009 were $16 million lower than estimated. In the month of October 2009, there was a slight $1.3 million increase in collection.

Summary

The politicians do the formulation of all the different policies and programs. The economic policy, the budget policy, the social security programs are all influenced by the legislators. The legislators also determine how to impose the individual income tax, entitlement expenditures, state deficits, and the discretionary expenditures.

The economic condition in whereby expenditure is more than the income is called deficit. When the country’s imports are more than the exports, a trade deficit is realized. When the losses in the company are more than the profits, what results is the budget deficit. The consequences of the prolonged deficit are perilous to any organization or entity. One of the consequences of deficit is inflation (Honadle et al 2004).

In order to address the problem of deficits, borrowing is done. The borrowing will compensate the revenue shortfall. This process is called deficit financing.

Considering the situation in the state of West Virginia, the aspect of politics in the prioritization of policies is evident. This is because during the fourth special session, instead of focusing on the state deficit, which has dire consequences, the legislators were focusing on municipal pensions and the state gas. With inflation, unemployment will arise. Therefore, state deficits should have had more attention in the state of West Virginia (Honadle et al 2004).

CHAPTER 3

PUBLIC POLICY

Does the political involvement in public policy formulation affect public administration and

Social programs?

Introduction

In the different state and local governments of the United States of America, different public policies have been formulated. Each of these policies is very crucial for the welfare of the people in one way or the other. The public policies are very many and work in the different sectors of life. There are the fiscal policies, which look into the economic and budgetary situation of the state. Apart from the fiscal policies, there are also other policies, which include the educational laws, the health insurance laws, the labor laws, the smoking and tobacco laws, the land use and environmental laws. Additionally, there are the marriage and partnership laws, the campaign finance laws, the affirmative action laws, the death penalty laws, the gun control laws, the alcohol, marijuana and salvia laws, among others.

This research focus in this chapter is organized around different aspects of public policy in the state of West Virginia. These broad themes identified under the public policy include:

The identification of the issues of public policy affecting the people in the state of West Virginia, the actions towards these issues and the roles of politics in the implementation of the action plans.

Within the agenda, the research is going to identify the various public policies formulated in West Virginia state, and the relevancy of these policies concerning implementation. The research is therefore going to utilize the data obtained from the advocacy groups in the state of West Virginia (Rushefsky, 2007).

After assessing the different areas of focus, the research outlines the impact of the involvement of politics in the public policy in the state of West Virginia.

Data

The research was centered at the state of West Virginia in the United States of America. It was done to obtain the economic situation in the state of West Virginia in relation to the needs of the people. A third of the jobs in West Virginia are found in the service sector. The computer and data processing services are the largest contributor in the service sector. The sector accounts for twenty three percent of the gross state product. It generates an income equivalent to that generated by the manufacturing and retail industries combined in 1999.

The manufacturing industries are many in the state of West Virginia. These industries include the food processing, the electronic, the transportation equipment, the chemicals and furniture. Agriculture is also a key sector (Rushefsky, 2007).

Different produce like potatoes, tomatoes, apples, snap beans and broilers come from the state of West Virginia. The state is a top ten producer of the agricultural produce. It is also among the top ten producers of coal in the United States.

The following data as shown in Table 1 reflects the budgetary allocation to the different programs set in the state of West Virginia:

Table 1. General Revenue Fund Appropriation

Category

$ in millions

Public Education

$1,799

Health/Human resources

$790.7

Higher Education

$402.0

Military affairs and public affairs

$343.0

Others

$404.2

Revenue

$29.6

Executive

$42.5

Administration

$72.4

Environment

$7.9

Commerce

$65.6

Transportation

$8.1

Judicial

$118.9

Legislative

$26.7

Education and arts

$32.5

Total

$3.739 Billion

Analysis

From the two data, it is clear that the political involvement in public policy formulation affect the public administration and social programs. This is because the general revenue fund appropriation has reflected that the politicians in the State of Virginia determine the budget allocation to each of the public administration program as well as the social programs.

CHAPTER 4

FISCAL AND FINANCIAL ANALYSIS

Does the fiscal stance in public administration and social programs lead to unemployment, high levels of poverty index, absence of quality health care, and food insecurity?

Introduction

The methodology addresses action research. The action research investigates current economic and budgetary policies for identifying solutions for the state of Virginia to address a decrease of entitlement expenditures, discretionary expenditures, and an increase of revenue through taxes or other sources.

The fiscal policies fall under the umbrella of the economic policy. The economic policy is regarded as the driver of the different other policies existing in the local or state governments in the United States of America. This is because the implementation of any policy will require money, which is distributed through the economic policy. The ability of any state to support the critical sectors like education, science, healthcare, and transport relies so much on the economic strength of that particular state. The ability of the same state to also support new but important policies formulated for the purpose of a clean and conducive environment or a safety guarantee in the workplace also relies on the economic policy, which determines how much money to allocate to these policies.

Data

The first sub-question is designed to use secondary quantitative historical documents of economic and budgetary policy implementation in the United States since 1950, government budgeting documents from years 2005 through 2009 and legislative policy on wartime funding. The quantitative data must include a breakdown of line items addressing expenditures to and from the Social Security Administration and individual income taxes. The information is located and secured from the Department of Government and Accountability Office and Congressional Budget Office via government website. The data will be interpreted based on a deductive reasoning.

The second sub-question is designed to use secondary qualitative documents addressing the use of entitlement and discretionary expenditures. The quantitative data must include interviews and questionnaires from various demographics and their view on the appropriation and positive and negative use of expenditures. The information is located and secured from the Journal of Appropriations and the Journal of Timekeeping. The data will be interpreted based on an inductive reasoning.

According to the West Virginia state budget, 2010-2011, the state missed financial year 2010's revenue estimate by a huge amount of more than $29 million. However, $119 million in midyear expenditure reduction as well as an estimated $12 million surplus in state agency accounts by far offset the deficit in the revenue. In addition, sales and personal income taxes, which are the state's two significant general revenue supplies - exceed both their monthly July 2010 approximation and their July 2009 collections Honadle et al 2004).

The state moreover, will obtain approximately $136 million from the federal government according the $26 billion plan to furnish states with money for Medicaid and education. The President signed into law on August 10, 2010 signed this.

By adding the total of outstanding debt, pension, unemployment trust funds, OPEB UAAL’s and the budget gap in 2010, the total outstanding debt for the state of West Virginia totals to $ 13, 774,822,023.

The following data on Table 2, 3 and 4 show the financial analysis of the state of West Virginia in 2011.

Table 2: The 2011 state spending and deficit in billions

Total Spending

Health and human services

Education

Protection

Transport

Other

$11.2

$3.8

$3.0

$0.56

$1.3

$1.9

Table 3: The 2011 local spending and deficit in billions

Total Spending

Pension

Health care

Education

Welfare

Protection

Transport

Deficit

$6.8

$0.0

$0.3

$2.8

$0.1

$0.6

$0.2

$3.7

Table 4: Budget figures

The following table provides a history of West Virginia's expenditures and gross domestic product (GDP).

Fiscal Year

Expenditure (billions)

GDP (billions)

2005

$12.1

$53.0

2006

$12.4

$56.0

2007

$12.6

$57.7

2008

$12.9

$59.5

2009

$13.2

$61.3

Analysis

From the data on local spending and deficit, it is evident that not all the programs in the public administration and in the social security can be allocated something in the budget. This implies that with the total revenue collected, the political leaders have to decide on which programs to fund first as well as how much to allocate each of the programs.

The second table on the other hand reflects that since 2005 up to 2009, the amount of expenditure increases with the increase for product. This implies an increase in the revenue collection. The amount of revenue is directly proportional to the amount of tax. Therefore, the tax increase is brought about by increase in sales and personal income.

CHAPTER 5

SOCIAL PROGRAMS

Does the formulation of policies affect the implementation of the social programs in West Virginia?

Introduction

The research methodology employed to answer this question involved the consideration of the legislations made and their effects on the social programs in the state of West Virginia.

Data

The relevant data on this was obtained from the secondary quantitative data from the West Virginia centre on budget and policy. The data consisted of a list of various social programs in West Virginia and the budget allocation to these programs.

The second part of the question involved the collection of the qualitative data on the views of the people on the budgetary allocation seem. From the two data, deductive reasoning is used to analyze the findings and make a conclusion.

The following table shows the deductions made in the different budgetary allocations in the state of West Virginia

Table 5

Program

Funding Cut

Grants & Even Start

-$4,800,000

Special Education Grants to States

-$3,700,000

School Improvement

-$2,200,000

Pell Grants

-$39,000,000

Tech-Prep Education State Grants

-$880,000

Workplace Community Transition Training for Incarcerated Youth

-$140,000

Workforce Investment Act Job Training

-$27,500,000

Community Mental Health Services Block Grant

-$150,000

Substance Abuse Prevention and Treatment Block Grant

-$2,200,000

Public Housing Capital Fund

-$4,700,000

HOME Investment Partnerships Program

-$1,300,000

Clean Water State Revolving Fund

-$22,000,000

Drinking Water State Revolving Fund

-$5,000,000

Community Development Block Grants

-$17,000,000

Byrne Justice Assistance Grants

-$900,000

Analysis

Based on the above data, the formulation of policies greatly affects the implementation of different social programs in the state of West Virginia. Each of the above social programs has received a different deduction from the other. This is according to the decisions reached upon by the policy makers. Therefore, politics has a big bearing in this case (Aday, 2001)

Chapter 6

Summary

Chapter 2

Different programs, policies and the fiscal information found in a public administration system of any given state in America were highlighted in chapter two. The economy and budgetary policies have been discussed. Also discussed here are the social security programs. Concerning the fiscal aspects, the individual income tax, the entitlement expenditures, the discretionary expenditures, the revenue collected through taxes and the state deficits have been reflected in the chapter.

The different issues discussed in this chapter are relevant to the study in one way or the other and have therefore, contributed the realization of the different objectives of the study.

Chapter 3

In this chapter, discussion was based on the question that had been set before. The question was does the political involvement in public policy formulation affect public administration and social programs? According to the data analysis, it is clear that the political involvement in public policy formulation affect the public administration and social programs. This is because the general revenue fund appropriation has reflected that the politicians in the State of Virginia determine the budget allocation to each of the public administration program as well as the social programs.

Chapter 4

In this chapter, discussion was based on the question that had been set before. The

question was whether the fiscal stance in public administration and social programs result in the

Unemployment, high levels of poverty index, and absence of quality health care.

From the data on local spending and deficit, it is evident that not all the programs in the public administration and in the social security can be allocated something in the budget. This implies that with the total revenue collected, the political leaders have to decide on which programs to fund first as well as how much to allocate each of the programs Honadle et al 2004).

The second table on the other hand reflects that since 2005 up to 2009, the amount of expenditure increases with the increase for product. This implies an increase in the revenue collection. The amount of revenue is directly proportional to the amount of tax. Therefore, the tax increase is brought about by increase in sales and personal income.

Chapter 5

Does the formulation of policies affect the implementation of the social programs in the West Virginia state?

Based on the data that was obtained, the formulation of policies greatly affects the implementation of different social programs in the state of West Virginia. Each of the social programs set in the state receives a different deduction from the other. The policy makers according to the decisions arrive upon this. Therefore, politics has a big bearing in this case (Aday, 2001)

Conclusion

Sub-Title one

From the research on the public policy, the study has revealed that the policy makers formulate different policies in the legislature. At the same time, the different policies are implemented differently, based on the decisions of the policy makers (Hetherington and Keefe 2007).

Since the organs set for the implementation of these policies include the public administration, the aspect of politics therefore, in the public administration is evident. This is because from the data that was obtained, the general revenue fund appropriation reflected that the politicians in the State of Virginia determine the budget allocation to each of the public administration program as well as the social programs (White, 1999).

Sub-Title two

From the research on the fiscal and financial analysis, the various programs receive different budgetary allocation in the state of West Virginia. From the data on local spending and deficit, it is evident that not all the programs in the public administration and in the social security can be allocated something in the budget. This implies that with the total revenue collected, the political leaders have to decide on which programs to fund first as well as how much to allocate each of the programs Honadle et al 2004).

The second table on the other hand reflects that since 2005 up to 2009, the amount of expenditure increases with the increase for product. This implies an increase in the revenue collection. The amount of revenue is directly proportional to the amount of tax. Therefore, the tax increase is brought about by increase in sales and personal income

Sub-Title Three

The influence of the budgetary policy is clear in the analysis of the data on the social programs. This is because the data reveals that the reduction in the allocation given to the different programs can occur as determined by the policy makers.

Recommendation

From the analysis on the public policy, fiscal and financial analysis and the social programs, the question of the research on the issue of unemployment, under the economic and budgetary policy, it has been answered well from the research findings. This is because the various budgetary allocations have been seen. Education and health receive relatively the biggest allocation. This has a relationship with employment since with education; people will be able to create new jobs. With good health, the productivity of the working population would enhance the output and improve the economy. An improvement in the economy will ease unemployment.

However, the recommendation in this research paper is that the state of West Virginia should take measures to ensure that the state deficit is corrected early. This is because if the state concentrates on other programs while giving no attention to the state deficit, it can end up crushing the whole system in the state through inflation.

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