US Investment Essay Example | Topics and Well Written Essays - 250 words

US Investment - Essay Example The federal government plays the crucial role in funding education in public institutions either through grants or loans. Without the government support more than 400,000 students who would not have access to quality education or employment (Thelin 120). Therefore, the federal government can encourage more investment in education through subsidies in order to promote quality education that leads to better jobs. Limiting subsidies to specific professionals considered crucial for economic development will increase competence in technical areas; increase job stability and marketability of the workers hence increase in global competence of the economy (Flores 78). However, it will have adverse effects because some students will not join their careers of choice, increase unemployment due to congestion in particular careers and increase of illiteracy rate for those who cannot afford to take careers of their choice (Flores 79). Increasing subsidies to the certain profession will violate the economic principle that upholds government market outcomes because it will increase inequalities of sharing national resources (Mankiw 64). In conclusion, education is essential for economic growth hence government support through subsidies increases the literacy rate, employment opportunities, and improvement in the living standards. The government should offer uniform support in all professions while attractiveness of the labor market determines the choice individuals make when choosing their