Things are not out of what I had learnt in Economic lesson. I still remembered one of the weaknesses of fiscal policy. When election is near, fiscal policy is normally expansionary. This news has corroborated this lesson. Coalition government announced that they would allocate a $120 million fund to ameliorate the information and communications technology in school. In this case, bureaucratic effects would be avoided by granting the technology directly to schools. As a result, the time lag of the effects could be prevented. Besides that, coalition government also revealed that 30 new colleges would be established to provide an apprenticeship to students after they finished high school. All of these are considered as expansionary fiscal policy where the government expenditures were increased. As a conclusion, fiscal policy is abused for political reasons.
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