Ideologies of Public Finance and State Government
Public finance is a field in finance where economists assess spending and taxation systems of the state and determine the likely effect. Under this field, several ideologies have been formed, following how the government is works and the relationship between the state and individuals (Hyman, 2014). This arises from the roles that the state government has been given.
The question of the role of how ideological viewpoint in public finance affect the state government brings out two categories of people. The first group is those who accept the positive role of the state, and the second ones are those who oppose the negative role of the state government.
Some people are of the idea that the market has more strength in the allocation of goods and services than the government while some are against this ideology. They view the state government as being irrational and monopolizing the allocation of resources. They are of the idea, therefore, that the resources be controlled by the market, which can make useful use of the money (Buchanan, 2014). Therefore, each ideology varies according to the individuals and how they relate with the state.
Reference
Buchanan, J. M., (2014). Public finance in the democratic process: Fiscal institutions and individual choice. UNC Press Books.
Hyman, D. N., (2014). Public finance: A contemporary application of theory to policy. Cengage Learning.