Economic Policy

Economic Policy

Table of Contents

Title Page .1

Table of Contents .2

Abstract .3

I Introduction .4-5

II . Urban Housing Policy 6-8

III . Urban Education Policy .8

IV . Urban Transportation Policy .9-11

V Conclusion .12

References .13

Abstract

This essay tackles about the three policy areas in the economic industry urban housing policy , urban education policy , and urban transportation policy . It covers up the system for setting interest rates and government

deficit as well as the labor market , national ownership , and many other areas of the government support . These policies are often influenced by international institutions like the International Monetary Fund or World Bank as well as political beliefs and the consequent policies of parties . Housing Policy is usually analyzed in economic industry , as a form of market . Market leads to efficient allocation through a complex process of matching supply and demand . This depends on competition , good information , the existence of multiple suppliers , and the existence of different multiple purchasers One good example of transportation policy is the application of it in the light-rail station boarding in United States . Urban school now in many part of the world is facing a big problem in meeting the educational needs of the children living within their areas of responsibilities and boundaries

I . Introduction

Urban policy is a term used for a wide range of different concerns and activities . The issues are usually related in economic development which includes the local economic activity , income generation and employment policy the social development , including housing and neighborhood issues , relations within , between communities , social inclusion and the geographical issues , concerned with spatial relationships , planning transportation and the urban infrastructure This thing does not define a very distinct area of concern , and some issues , like local economic policy , are not certainly urban at all . This policy has mainly been distinguished by attempts to treat economic and social issues in localized settings . Characteristics of this are area-based policies , often concentrated on deprived areas within cities The joint and partnership within the organization are working and drawing together a range of agencies . The different community groups are working insufficiently through its development and political organization

The economic policy is a complicated division and can be broken down into three main areas the Fiscal policy , the Monetary policy , and the trade policy . The Fiscal policy is the size of the government deficit and the methods it uses to finance and stabilize it . Fiscal stance is the size of the deficit . The tax policy is used to collect government income . Monetary policy is concerned with the amount of money in circulation and consequently , interest rates and inflation . The wide source of interest rates is being set by the Government . Income policies are aimed at the imposing non-monetary controls on inflation while the bank regulations affect the money multiplier . The trade policy refers to tariffs , trade agreements and the international institutions that govern them . Almost any aspect of government has an economic aspect and so many terms are used . However , they can usually be seen to apply to one of these areas . For instance , HYPERLINK "http /en .wikipedia .org /wiki /Agricultural_policy " \o "Agricultural policy " agricultural policy is generally a matter of the HYPERLINK "http /en .wikipedia .org /w /index .php ?title Burden_of_taxation action edi t " \o "Burden of taxation " burden of taxation and of trade in agricultural goods . Housing policy is usually analyzed in economic terms , as a form of market . In theory , markets lead to efficient allocation through a complex process of matching supply and demand . This depends on competition good information the existence of multiple suppliers and the existence of multiple purchasers . In housing , this theory has limited application . In most of Europe , the most basic problem is a shortage of adequate housing . This statement may seem strange , because most European countries have a crude surplus of houses over households . The apparent surplus includes , however , large numbers of properties which are unfit to live in . When these are excluded , the result is a net shortage . This does not take account of other reasons for shortage - like second homes , housing in the wrong place or the need for a vacancy surplus so that people can move house . The effect of having too little housing is that some people are left out . Because housing operates in a market , the people who are most likely to be left out will be those who have least resources . They cannot obtain accommodation , or have to live in unfit accommodation . The shortage also leads to increasing prices , creating problems in the supply of affordable housing . Policy is generally directed to achieve particular objectives , like targets for HYPERLINK "http /en .wikipedia .org /wiki /Inflation " \o "Inflation " inflation HYPERLINK "http /en .wikipedia .org /wiki /Unemployment " \o "Unemployment unemployment , or HYPERLINK "http /en .wikipedia .org /wiki /Economic_growth " \o "Economic growth economic growth . Sometimes other objectives , like HYPERLINK "http /en .wikipedia .org /wiki /Military_spending " \o "Military spending military spending or HYPERLINK "http /en .wikipedia .org /wiki /Nationalization " \o "Nationalization nationalization are important . These are referred to as the policy goals : the outcomes which the economic policy aims to achieve . To achieve these goals , governments use policy tools which are under the control of the government . These generally include the HYPERLINK "http /en .wikipedia .org /wiki /Interest_rate " \o "Interest rate interest rate and HYPERLINK "http /en .wikipedia .org /wiki /Money_supply " \o "Money supply " money supply , HYPERLINK "http /en .wikipedia .org /wiki /Tax " \o "Tax " tax and government spending , tariffs , exchange rates , HYPERLINK "http /en .wikipedia .org /wiki /Labour_market " \o "Labour market " labor market regulations , and many other aspects of government .The government 's economic policy determines the tools and hopes that they will achieve its goals

II . Urban Housing Policy

At the beginnings of the 21st century the demographic changes in the United States are shaping housing consumption . All the units of life are the influence of the housing trends today and the future . The households around the world are the foundation of the starting edge of the community for the housing policy . This will be added by the different economic changes which our embedded in the shifting demographic landscape , including new ways and development system of work like the influences of the thins that will happen in our industry , that will greatly affect the housing consumption . With these changes in the picture , the government is giving more attention at the number , location and consumption of the housing projects around the area (Masnick br

.277

In the fast few years , we knew that some evolution in both the focus of and approaches to urban housing policy . Limited availability of affordable rental units , mortgage finance , reduce housing and income assistance to very low income populations , problems of public housing low income housing preservation , issues of equal opportunities in housing and housing finance market still remain at the head of the current urban housing policy debate (Gabriel , Urban Housing Policy

One of the big problems in urban housing policy is the inadequate houses for the public people . Number of homeless people today is constantly increasing year by year . Homelessness is a very complex problem . There are main issues about the problem in homelessness one is the shortages of housing . If there are not enough places for people to live , then someone has to go without . Because housing is mainly allocated by the market , those who are excluded will generally be the poorest people . Next is the entitlement to land . In many countries people squat rather than being homeless . Squatters usually build temporary shelters at first , but over time squatter settlements are built up and the housing on them becomes more established . In developed countries , or at least countries with more developed systems of land tenure , land is not likely to be free for occupation . Another one is the entitlement to housing . If people are not entitled to use the housing which exists , they may be homeless , even when there is no apparent shortage . Some people are excluded because of their circumstances - street children are an example . The main reason for exclusion , however is financial - homeless people are those who cannot afford the housing which is available . The last one is the personal situation of homeless people . Homelessness is often attributed to the characteristics of the homeless person , such as alcoholism and psychiatric illness or to the social situation of homeless people , such as unemployment and marital breakdown . This approach needs to be treated with some caution people in these situations only become homeless if they are excluded from housing , or do not have enough resources to secure alternative housing The central issues are the problems of HYPERLINK "http /www2 .rgu .ac .uk /publicpolicy /introduction /needf .htm " \l "Poverty poverty and HYPERLINK "http /www2 .rgu .ac .uk /publicpolicy /introduction /needf .htm " \l "Exclusion " exclusion (Dunleavy , 1981

The number of private housing decreases proportionately because the growth of owner-occupation and local authority housing took out a large part of the market . It is cheaper to buy than to rent , and the capital values have been dictated by sale to owner-occupiers . Housing conditions in many cities are particularly unsatisfactory the houses are old and in poor condition . A series of policies since the late 1960s have focused on the problems of deprivation in inner city areas . Much of the concern with the inner cities grew from an attempt to produce an acceptable racial policy . Despite this , Rex states that ethnic minorities have not even had a proportionate share of resources from policies for the inner cities

This is the various things that the local government is focusing in these days . The urban housing policy is greatly affected by these constant changes in the society (Gabriel , Urban Housing Policy

III . Urban Education Policy

Improvement in Educational reforms is the main objective of urban education policy . Urban districts are now facing hazardous problems in educating young people because of the lack of support from the local government . Many buildings in urban public schools are very old . The urban education policy is likely implementing site-based management throughout the district . This implementation will allow officials and teachers at the school level to focus more on the specific needs of the students . Different offers around the nation promised the immediate reaction for the improvement of the school condition particularly in the urban section

There are a big number of public schools today in the United States but only one-fourth of the country 's students are attending the classes throughout the districts . These are the main problems of the district official in the urban public area . They are unable to comply with the needs of their student population . The rates of dropout students are also increasing

Educational reform efforts and policy initiatives are now under way that shows commitment in improving the quality of education and the proper raising of the student outcomes in the urban districts . A key issue in urban education policy is the potential impact of market-based reforms (Hess , 2001

It will require more than the application of additional money in improving the quality of urban education . Research said that the allocation of school funds is focusing more in the functions such as instruction , administration , and operations and the maintenance in almost the same number statistically (Picus , 1996

IV . Urban Transportation Policy

Traffics are the main point in the urban transportation policy . Many countries today have still no urban freeways . The numbers of owned type cars are increasing that 's why problems in traffics are unavoidable in many nations . Americans faced much the same problem with transportation in their cities . But the American plan for dealing with urban congestion in the automobile age was very different . In 1954 , President Eisenhower suggested that "metropolitan area congestion " be "solved " by "a grand plan for a properly articulated highway system " In 1956 , the House Committee on Public Works urged "drastic steps " warning that otherwise "traffic jams will soon bring down our growing economy (Larsen , National Highway Program . The demise of the highways-only policy stemmed also from serious flaws in the policy itself . From the end of World War Two the federal government began a significant intervention in urban transportation , one which had increased to enormous proportions by 1960 But the funds were provided exclusively for the construction of urban highways . Thus , urban transportation systems necessarily became imbalanced in favor of automotive transport , regardless of the relative merits of the various modes under various conditions . Even the automotive transport systems themselves were out of balance , because of the ways in which federal dollars were allocated . For example , while new freeways were providing automobiles unprecedented ease of access to cities , substantially less federal money was provided for the downtown streets that had to bear the increased load and no money at all was available to provide the record numbers of cars with parking (Norton 1955-1970

The US new urban transportation policy serves greater idea in resolving congestion problems in the cities . Highway-Only Policy is one of those new integrated ideas . It does not fall within the compass of this essay to explain the political , cultural , or intellectual origins of an urban transportation system that relied overwhelmingly on highways . Interested readers can consult other works . But to account for the eventual retreat from the highways-only policy , it must first be understood . What follows is an attempt at a brief of that policy in those aspects that relate to the eventual change . The Federal-Aid Highway Act of 1944 made a beginning at bringing highways to the city . It set aside 25 percent of federal highway funds for urban projects and called for the designation of a "National System of Interstate Highways " Although funding of these projects in the late 1940s and early 1950s was at more than two and a half times the prewar levels , billion dollars or less . The problem was that while government and industry both wanted highways , neither wanted to foot the bill . Industry opposed excise taxes and tolls , while government opposed special bond issues and debt increases . Divisions between pro-highway industries impeded their ability to lobby for an effective highway program

Another administrative application of urban policy is keeping the high-ways urban . It is said to be , that the highway system that the government-industry partnership built was urban . Other countries in the late 50 's , with extensive highway networks , the roads avoided urban centers . American roads steered for them . The difference stemmed from the unique degree of private participation in U .S . transportation policymaking , and a federal policy that treated all transportation problems as matters for highway engineers to solve

Industry , not government , took the initiative in proposing that highways go downtown . Eisenhower 's coalition was composed of industries "associated with the highway problem " and "interested in highway development " in the words of the Clay Committee report . Although the Clay Committee conferred with the American Railway Association in drafting its report , this group was the only one of twenty-two trade organizations consulted which had an interest in rail transport Fourteen of the groups consulted were expressly concerned with roads But these industries were not simply developing a highway policy . This is their foundation in creating a new national transportation policy However , many cities in the United States today have recently built light-rail systems to combat congestion problems and at the same time avoid pollution . But some critics oppose this policy because of the function in some small downtown areas . The application of this light-rail after its almost universal domination in the 20th century is one of the greatest twists in transportation history . This application policy is an exclusive idea whose time appears to have come . Local government now hopes that the light-rail will gain moderate transportation that will reduce the traffic problems around the country Fighting congestion was the main rationale for making American highways enter cities to a degree unmatched elsewhere in the world . The consequences of this experiment ultimately transformed U .S . urban transportation policy . Critics of the policy , in government and out achieved broad bases of support by confronting this problem . Expertise in urban transportation matters , which had been the exclusive domain of highway industry , emerged in other institutions , both governmental and private . The road builders ' promises to end congestion , to keep downtowns vital visibly failed to pan out . In brief , the vigor of the government-industry partnership that brought the freeways into the cities did not last (Barranda , 2004

V . Conclusion

At the end of this research studies about the three main economic policies which are the urban housing policy , urban educational policy and the urban transportation policy , we have learned the different principles , ideas , perspective of these policies that will help greatly in the development of the industry in our society

More funds and support from the local government is needed for the allocation of housing problems in the urban section . The homeless people in the society should give more attention in the leaders to provide immediate action for its remedy . Great number of various projects is on the line for the development and the answer for the increasing population in the nation . As the continuous increase in the number of population , the greater the percentage in increasing the number of homeless people is in the picture . These issues are what the urban housing policy is working on . Problems however in the educational policy are attaining more sufficient attention from the government for the foundation of the urban education policy . It is applied to all urban schools so that the time and money will be saved in educating more students . Funds are needed for the improvement and development of some urban public schools . This will provide a higher quality of education for the young people in the country . Many kinds of projects for the transportation problems are now being started . These will help in avoiding the increasing congestion problem in the nation

References

1 . Barranda , M . Kuby , A . and C . Upchurch Factors Influencing Light-Rail Station

Boarding in the United States , Transportation Research Part A Vol .38 pp . 223-247

2 . Dunleavy , Paul The Politics of Mass Housing in Britain , OUP

1981 , Chicago Printing Club

3 . Gabriel , Stuart A Urban Housing Policy in the 1990s , Housing Policy Debate

Vol .7 , No .4 , pp .673-693

4 . Hess F .M , and Leal D .L Quality , Race , and the urban education Marketplace

Affairs Review 2001 , Vol .37 No .2 , pp . 249-266

5 . Larsen , Lawrence H . and Branyan , Robert L National Highway Program ,84th Congress , 1sy Session , 1995 , House Document No .93

6 . Masnick , George S The New Demographics of Housing , Housing Policy debate

Vol .13 , No .2 pp .275-321

7 . Norton , Peter Fighting Traffic : U .S . Transportation Policy and Urban Congestion

1955-1970 , University of Virginia

8 . Picus , Lawrence Current Issues in Public Urban Education , 1996

Housing Policy Debate , Vol .7 No .4 , pp . 715-729

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