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:
“No sociologist ... should think himself too good, even in his old age, to make tens of thousands of quite trivial computations in his head and perhaps for months at a time. One cannot with impunity try to transfer this task entirely to mechanical assistants if one wishes to figure something, even though the final result is often small indeed.”
—Max Weber (1864–1920)