The Advanatges of Government Spending on Economic Growth

NAME: NNAMDI OKECHUKWU

THE ADVANATGES OF GOVERNMENT SPENDING ON ECONOMIC GROWTH

Government spending is a very critical and controversial topic in the modern world, while parties for spending and against spending make a valid argument, we can come to simple conclusion that there are times where government spending is needed to boost the economy and others where low levels of government spending is required to stimulate the economy to achieve results. In this paper, I will be discussing the advantages of government spending and how it positively impacts the economy. I will discuss how government spending has positively affected the economy of Nigeria.

Over the past couple years, Nigeria, a third-world country, which is situated in the West of Africa, has continually struggled to carter for the needs of citizens. Despite the abundant flow of oil and other natural resources, there has been no economy growth and the economy is always in a recession. Unemployment, lack of public and private infrastructure, lack of technology, falling financial institutions and poverty are the results and effects on the economy.

Secondly, there is a significant rise in social equality, income is not properly redistributed and this has negatively affected equity. Externalities; pollution is on the rise and most importantly the private sector has suffered as there are no financial support system to help private companies expand trade and diversify. There is also the problem of low employee engagement caused by low wages and terrible working conditions. The economy has grown worse over the couple years and ineffective leadership as failed to find fast and effective solutions.

Proper and Strategic government spending can help boost the economy of Nigeria in various ways. Government spending improves the public sector; construction of efficient transportation and communication networks, up to date hospitals and medical research facilities, good schools with...