Some economists think the government should help fund local

Some economists think the government should help fund local sports stadiums while other economists think the government should leave the funding up to the private sector. a. What kind of claims are the economists making? b. What are two reasons the economists might disagree? c. Give an example of the other kind of claim using the local sports stadium context.

Solution

In Economics we study only economical or productive activities thatswhy some economist not infavour of government funding for sport stadium because they thought it is noneconomical activity which will not support for the economical development of the country.It is a view of those economist who are supporting capitalistic economies.In this economy all economic activities are done by private sector.

But some economist support that government should provide funds for local sport stadium. These economist in favour socialistic economy where all economic and non economic activities are under control of the government.

A)These economist support that government should to some expenditure for the direct and indirect support in the development of the country.it refers to expenditure on activities which are directly related to economic and social development of the country.This includes expenditure on education,health,agricultural and industrial development,rural development,social welfare,scientific and research.It directly contributes to development of the economy.

B)But some economist who are supporting private ownership they thought it is a burdon on private industries because if government give funds to the local sport stadium ,Government will increase Tax for availing this funds.

So why not they should directly pay for this purpose.it will increase their image in the society.

C) There are some social welfare socities which can support local sport stadiaum for funding.