What are some of the micro and macroeconomic aspects of higher UK government spending on subsisided childcare? Let's take a look.

#edexceleconomics #fiscalpolicy #ukeconomy

VIDEO TIMESTAMPS
00:00: Introduction
00:31: Expensive child care costs
01:04: Micro and macro effects of increased government spending on child care
01:33: Micro effects: Externalities, labor market, subsidy to child care providers
03:09: Market failure diagram
04:20: Macro effects: Supply side, aggregate demand, fiscal consequences
06:18: Discussion on fiscal consequences
06:49: Summary and conclusion

VIDEO SUMMARY

This video explores the micro and macro effects of increased government spending on childcare in the UK. High childcare costs burden working families, and the government aims to expand free childcare entitlements. Micro effects include the potential for under-consumption of childcare due to external benefits, labour market improvements, and subsidies for childcare providers. On the macro side, increased spending can lead to an expansion of the labour supply and aggregate demand, benefiting the economy. However, the fiscal consequences and potential crowding out of other public services should be considered. Overall, government spending on childcare can have positive impacts on both micro and macro levels.

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