The Impact of Global Economy and Income Inequality on the Expansion of Fiscal Deficit

• Main Authors: Wei,ling-kuei, 魏伶桂
• Other Authors: Huang,shi-xin
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/67234902582342836706

碩士 === 國立臺北大學 === 財政學系 === 95 === In the past, in order to solve the expansion of fiscal deficit, government sets up fiscal discipline, redirection of public expenditure, stress rational budget policies and so on. Fiscal balance has become the ideal goal for Taiwan’s deficit. Even though government has aimed for the expansion of fiscal deficit, it is still increasing rapidly. Meanwhile, the inequality of income has also existed. Hence, the main purpose of this study is to discuss the impact of global economy and income inequality on the expansion of fiscal deficit. In fact, the global economy has based on the neo-liberalism since 1980s. This economic theory emphasizes the deregulation can make the distribution of resources more efficiently. We must recognize that the market system is inseparable in our life, however, people’s property or resources are requirements to enter the market system. Furthermore, the ability to pay will decide the competitiveness in the market system. Once economic ability is unequal, it will lead to unfair exchange in the market system and even result in income inequality. In the capitalism and democratic society, governmental fiscal policies are affected by economic stronger, such as tax reduction or exemption regulations. In addition, government should avoid economic weaker excluding from the market system employs education, social security, etc. Under the insufficient tax revenue, tax base erosion and public expenditure increasingly, the income inequality in society caused the expansion of fiscal deficit. Therefore, government must devote to improving the income distribution to slacken off the expansion of fiscal deficit.