Transfer Payments
Government expenditures that are not acquisition of goods and services, and instead just represent transfers of money, such as social security payments, are called transfer payments. These payments are considered to be exhaustive because they do not directly absorb resources or create output. In other words, the transfer is made without any exchange of goods or services. Examples of certain transfer payments include welfare (financial aid), social security, and government making subsidies for certain businesses (firms).
Read more about this topic: Government Spending
Famous quotes containing the word transfer:
“If it had not been for storytelling, the black family would not have survived. It was the responsibility of the Uncle Remus types to transfer philosophies, attitudes, values, and advice, by way of storytelling using creatures in the woods as symbols.”
—Jackie Torrence (b. 1944)