Google
Tuesday 
May 17, 2022 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
ACTUAL INVESTMENT: Investment expenditures that the business sector actual undertakes during a given time period, including both planned investment and any unplanned inventory changes. This is a critical component of Keynesian economics and the analysis of macroeconomic equilibrium, which occurs when actual investment is equal to planned investment. The difference between planned and actual investment is unplanned investment, which is inventory changes caused by a difference between aggregate expenditures and aggregate output. Should actual and planned investment differ, then aggregate expenditures are not equal to aggregate output, and the macroeconomy is not in equilibrium.

Visit the GLOSS*arama


PUBLIC SECTOR:

A common term for governments, including all three levels--federal, state, and local. It is termed the public sector to indicate that decisions are made by governments on behalf of the public. The contrasting phrase is private sector, in which decisions are made by private individuals (either consumers or producers) in pursuit of their personal self-interests.
The public sector is another term for the government sector. It includes the activities undertaken by government employees (elected, appointed, or other) when they are working on behalf of governments. The public sector is best specified from a functional perspective--by what people do, not who they are. While the private sector, in essence, includes every member of society, it does not include everything that everyone does. People are part of the public sector when they are serving in elected public offices, working in the military, or working for a government agency. However, they are part of the private sector when they are buying goods, working in factories, running companies, and engaging in voluntary market exchanges.

Government Sector

The government sector includes all levels of government, including federal, state, and local. The primary function of the government sector is to force resource allocation decisions that might not otherwise be made by the rest of the economy.

Governments rely on the ownership and control of resources to coerce or force specific allocation decisions. This ownership and control may result from collective decision-making (that is, elections), such as what exists in a democracy; or it can be obtained by force by a power-crazed dictator with a large army.

Through whatever means the public sector obtains its power, the prime question is how the power is used. Like fire, public sector power can be used for good or bad. Some well-meaning (usually with a liberal bent) folks see assorted problems of markets and market-based economies (including, but not limited to, market failure inefficiencies at the microeconomic level and business-cycle instability at the macroeconomic level), and look to the public sector for solutions. Other equally well-meaning (primarily with a conservative view) folks see the myriad of public-sector failings and the perpetual threat to individual freedoms of an oppressive government, and view government as the source of problems, not the solution.

An Ongoing Allocation Debate

A distinction between the public sector and the private sector reflects the two basic methods of answering the three questions of allocation--governments and markets. The public sector relies on government decisions that are involuntarily imposed on the economy, but, in theory at least, are made on behalf of the public. The private sector relies on markets and the private ownership and control of resources for voluntary allocation decisions.

The terms private sector and public sector reflect the ongoing debate over the degree of government involvement in the economy. Some debaters (liberals) say that a lot of involvement is needed, others (conservatives) say very little is needed. While this debate is unlikely to be concluded (EVER!), evidence to date indicates some government intervention can be useful, just not too much.

<= PUBLIC GOODS: EFFICIENCYPURE COMMAND ECONOMY =>


Recommended Citation:

PUBLIC SECTOR, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2022. [Accessed: May 17, 2022].


Check Out These Related Terms...

     | private sector | government functions | paternalism | nationalization |


Or For A Little Background...

     | political views | liberal | conservative | normative economics | fifth rule of imperfection | first estate | second estate | third estate | mixed economy |


And For Further Study...

     | four estates | economic system | distribution standards | ownership and control | economic goals | privatization |


Search Again?

Back to the WEB*pedia


APLS

BROWN PRAGMATOX
[What's This?]

Today, you are likely to spend a great deal of time searching the newspaper want ads trying to buy either a lazy Susan for you dining room table or a set of serrated steak knives, with durable plastic handles. Be on the lookout for slightly overweight pizza delivery guys.
Your Complete Scope

This isn't me! What am I?

In the early 1900s around 300 automobile companies operated in the United States.
"Try not to become a man of success but rather to become a man of value. "

-- Albert Einstein

RPI
Retail Price Index
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2022 AmosWEB*LLC
Send comments or questions to: WebMaster