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CHAPTER 1

CHAPTER 1. INTRODUCTION. Public Finance and Ideology. Mechanistic view of government: view of textbook (as opposed to other views that place the community above the individual)

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CHAPTER 1

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  1. CHAPTER 1 INTRODUCTION

  2. Public Finance and Ideology • Mechanistic view of government: view of textbook (as opposed to other views that place the community above the individual) • “Government is a trust, and the officers of the government are trustees; and both the trust and the trustees are created for the benefit of the people.” Henry Clay, 1829 - Focus on the individual

  3. Public Finance and Ideology • Government exists for the good of the people. • However, how do we define what good is? • National Defense • “protect…as far as possible every member of society from…oppression of every other member of it.” Adam Smith, 1776. • Others? See Day 1 quiz.

  4. The Size of Government • How to measure the size of government • Number of workers • Annual expenditures • Types of government expenditure • Purchases of goods and services • Transfers of income • Interest payments • Day 1 quiz

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