• Government policy is usually economic or social. Economic and social policy go hand in hand. • Economic policy refers to the actions the government takes to influence the economy.
• Social policy refers to the actions the government takes to influence the well-being or living conditions of the people.
• In November 2010, the European Union and the International Monetary Fund (IMF) provided Ireland with a bailout of €67.5 billion.
• Government economic policy affects individuals and businesses. • Government economic policy can have positive and negative effects.
• The National Recovery Plan 2011–2014 aimed to reduce the government’s budget deficit and boost economic growth.
• The expenditure and taxation measures set out in the National Recovery Plan affected a wide range of people, including public sector workers, businesses, social welfare recipients and consumers.
• The National Recovery Plan was designed to create a stronger economic environment by protecting existing profitability and investing in areas of potential growth. This included investment in enterprise and public services.
• Different stakeholders will have different opinions on whether a government policy is positive or negative.
• In December 2013, Ireland exited the bailout programme and the Irish economy began to show signs of recovery.
Taking stock A
Go to page 240 of your Activities and Accounts Book to check what you have learned in chapter 37.
