government debt financing and education
Respond to the following in no less than 800-words.
1. In what sense does the use of debt financing by a national government impose a burden on the future generation? How does debt financing increase the “wealth†of the current generation compared with tax financing? Under what circumstances will the burden of the debt on future generations be offset?
2. Why are matching grants likely to be more effective in increasing local government spending than are equal-dollar non-matching grants? Explain how matching grants can help achieve efficiency by internalizing inter-jurisdictional externalizations.
3. Explain why using the local property tax to finance a given quantity and quality of public schooling can result in low tax rates in rich jurisdictions but high tax rates in poor jurisdictions. How do state governments supplement local finance of education to insure equality of opportunity in education? Go to your state government’s Web site and find out how elementary and secondary education is financed in your state.
Please cite, add references and format according to APA format.
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