Government Transfer

Government purchases and transfer payments are both two major categories of government spending. Government purchases are expenses that are accrued by the government sector on final goods and services, or gross domestic product. These purchases are used to buy the goods and services needed to operate the government and to provide public goods (Hyman, 2014). For example, when the salary of an employee is paid, that’s a purchase that is used to buy services that are needed to operate the government; because without employees, the government can’t operate. When a new highway is constructed, this is an example of a purchase that is providing a public good, because highways play a vital part in regards to transportation. Government purchases are categorized by state, federal, and local government. As to

Welfare is an in-kind transfer being that it is a payout of goods and services; for example food stamps. I’m not a big fan of food stamps because I think it’s a waste of taxpayer’s money. I think it’s a great way for the less fortune to have funds to buy food, but I think it’s a bad idea when they use it to abuse the system. I also think welfare hinders people, because it keeps a person from reaching their full potential, because they are depending on the government. Some people get these benefits and do things that they know are not right, like selling them to other people for cash or deceiving the government to obtain the benefits. Social security is considered to be a cash transfer because it’s a direct cash payout. Proverbs 11:24-25, tells us that, “one gives freely, yet grows all the richer; another withholds what he should give, and only suffers want. Whoever brings blessing will be enriched, and one who waters will himself be watered”. I am all for social security, because I think if a person worked and paid taxes; then they are entitled to get that money back when they reach the retirement