Introduction:
The policies needed for investment in the capital and labor markets depends heavily on the public expenditure in order to influence the performance of the economy. The balance in the levels of public and private investments plays an important role in ensuring proper decision making pertaining to the labor and capital market investments in the economy. The levels of public and private investments influence the economic forces and policies in relation to labor and capital markets. Public investments play an important role in facilitating economic development and growth in the country. The levels of public investments are of the essence in determining economic growth and development in the country. The impact of government influence in the labor and capital markets is of the essence in order to evaluate the economic growth and development.
The government influence through taxes and public expenditure influence the levels of public investment that in turn affects the capital and labor markets in the economy. The levels of public investments play an important role in influencing employment levels in the economy. The aspects of wage rates depend heavily on the investments in the public sector. The issues relating to wage and income effects are mainly influenced by the investing in the public sector. An increase in the levels of public investments also influences the availability of job opportunities as well as influencing the wage rates in the economy due to access to the job opportunities. The increase in public investments also have a great influence on the general economic growth and development through rise in the levels of employment in the economy (Pollack 18).
Higher levels of public investments are of the essence in influencing the human capital. Labor or human capital is a direct product of public investments. The levels of public investments are of the essence in promoting the availability of labor as well as increase in the employment levels in the whole economy. The cost of labor will also be influenced by the investments in the public sector.
Public investments play an important role in relation to the promotion of technological advancements. This, therefore, promotes the general growth and development of the economy. This will also ensure efficiency of the resources in the economy. The technological forces are of the essence in ensuring that the public investments promote economic growth and development. Public investments also influence the accumulation of capital in the economy leading to a direct influence on economic trends and analysis in relation to the whole economic sector. Public investments, therefore, influence the levels of both labor and capital in the economy. Higher levels of public investments are very important in promoting economic growth and development.
Public investments influence the aspects relating to research and development in the economy. The increase in the levels public expenditure increases the amount allocated to research and development leading to improvements in economic growth and development (Prassas 24). The efficiency of research and development is also influenced greatly by the rise or fall of public investments in the economy.
In conclusion, the investments in the public sector are of the essence in determining the extent of efficiency of the economy. The public sector investments also play a crucial role in promoting the effectiveness and efficiency of both labor and the capital markets. The levels of public investments play a crucial role in boosting the economic growth and development. The effect of public investments on the labor and capital markets also influence the general economic growth and development of the country.
Works Cited
The Federal Role in America's Infrastructure: Hearing Before the Committee on Transportation and Infrastructure, House of Representatives, One Hundred Thirteenth Congress, First Session, February 13, 2013. N.p., 2013. Print.
Pollack, Mark A, and Gregory C. Shaffer. Transatlantic Governance in the Global Economy. Lanham, Md: Rowman & Littlefield, 2001. Print.
Prassas, Elena S, and Roger P. Roess. Engineering Economics and Finance for Transportation Infrastructure. Berlin: Springer, 2013. Print.
