The Significance of the policies of US and UK
The orientation of the policies is quite indispensable from the standpoint of a country. Almost every government has merely accentuated to increase the stance of motley policies within the country. Inevitably, there can be a number of policies like fiscal policy, economic policy and foreign policy, but we will discuss the economic policies of United States of America (hereafter USA) and United Kingdom (hereafter UK). Well, the main prospective of this study is not to assimilate and pen down only the policies of USA and UK, but we will see the significance of these policies if implemented by the Britain.
Development Economic Policies of USA:
Local governments are fetching gradually more implicated in confined economic and financial development programs: government-supported programs that inquire about to augment local jobs or the confined tax base by measures such as provided that backing to individual businesses.
Local economic development may be defined as increases in the “local economy’s capacity to create wealth for local residents.” Such increases occur if local resources, such as labor and land, are used more productively. Economic development can occur through local job growth, which causes unemployed labor and land to be used. However, economic development also occurs by shifting employed labor and land to more productive uses, for example, better jobs. Local economic development is arguably affected by all local government activities. However, local economic development policy is usually defined more narrowly as special activities, undertaken by public or private groups, to promote economic development. The activities labeled “economic development programs” fall into two categories:
1. Providing customized assistance targeted at individual businesses that are thought to provide greater economic development benefits; and
2. Strategic initiatives in which more general tax, spending, and regulatory policies of government are changed to promote local economic development.
Even without these government efforts, local economic development will often occur. However, local economic development programs are argued to increase the quantity or quality of local economic development. Local economic development is increasingly regarded as a major local government responsibility; according to one survey of the city elected officials, 86 percent believed that “bringing about economic development” is a major responsibility of local governments (Adkins, Dinah. 2002).
Apart from this general concept, there are some more economic policies, which have been initiated by the country due to the current financial constrain, and actually the significance can be articulated on the behalf of this more plausibly. The current financial crisis was the one, which induced the US government to revive their economic policy. To overhaul on the wobbling situation of the country, Obama, administration came up with a stimulus package of $787 billion to keep the economy back on track. The Government of USA took some brutal action to broaden the Income Tax slab for the corporations to 50 percent and imposed a limit on the remuneration of the Executives to $500,000 per year. The prevailing interest rate of the country has also manifested a zero percent mark and has been on the rate of 0.25%.
Economic Policies of UK:
For the period of 2000-2005 the European Commission has charged €23 million (approx £20million) from the European Regional Development Fund (ERDF) to South East England to recover its economic competitiveness. The South East England Operational Program (SEEOP) aims to promote competitiveness in South East England whilst contributing to the reduction of the region's ecological footprint. The priority is to “sponsor sustainable production and consumption” from beginning to end three themes: Promoting resource efficient business practices interesting innovation for a sustainable economy. Encouraging sustainable expenditure practices Projects are expected to last up to 3 years, be revenue expenditure and have either regional impact or be pilots with potential for relocate transversely the district. The economic policy of UK is almost the same as of US because the local government is also intending to decrease the unemployment rate of the country and appreciate its currency value. Let’s consider the same situation for the UK as well, likewise, we had used for the US. Britain is among those countries which have been affected severely due to the current financial crisis because of the large networks of banks. The UK government and Bank of England (BOE) seem to be worthwhile to stabilize the economy (Bernanke, 2009). Increasing the tax rate on the corporation up to 50% and guaranteeing every person under age of 25 who has been out of the job from last 12 months will be offered a job looks like a brutal and major action to bring the economy back on track.
Significance of policy adoption by UK
The economic development policy of UK and USA is almost same, but there are some contradictions may have found in their initiation. If the UK government further decreased their key interest rate than it would strengthen their economy like the US did recently. The main problem envisaged by both these countries is that, they both have a large network of banking sector then they have to keep a stringent eye over the consumption and confidence building of the consumers. The only thing from which the country becomes successful at do that is inducing the consumers to invest or borrow money from the banks which can be only happened, if they abridged the interest rate of the country.