Government Spending and Revenues in America and China

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Government spending and revenues in China and America
International accounting four 0092962 Chen Yuting
Public finance is a subject about the taxing and spending activities of government. Considering the function of government, two opposite views stand out. One is organic view of government. The main idear is that the government can be though of as the society’s heart. Another is mechanisitic view of government. It insists that government is not an organic part of society while it is a contrivance created by individuals to better achieve their individual goals. Neverthless, nobody can deny that the spending and revenues have a significant influence on our society. Our living standard is associated with government actions. As a result, it is meaningful to compare the government spending and revenues in China and America.

Without doubt, the revenues of government is the root of spending of government. In addition, it gives the government the power and the ability to put policy into effect. At the beginning of 2011, a piece of news comes that it is the first time for China that its annual revenues are more than 8,000 billion yuan. (Details are from: http:// paper.people.com.cn/rmrbhwb/html/2011-01/22/content_730659.htm?div=-1) Just in terms of the number of total revenues, American holds the number of 4214 billion dollars.(Details are from: http://www.usgovernmentrevenue.com/ ) If we conver the dollars to RMB, it is far more than China. However, in my opinions, the number of total revenues is not the unique factor affecting the size of government revenues. In my opinion, it is more rational to consider the rate of revenues in GDP. The rate of China is 20.88%.( The number of GDP is from the website: http://baike.baidu.com /view/368359.htm) Compared to America, its rate is 29.05%. ( The number of GDP is from the website: http://www.usgovernmentrevenue.com/classic.html?year=2010) As a result, the shortfall between China and America shrinks.

In spite of the...
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