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The second literacy post on finance: What is finance? Why study finance?
I suddenly feel the need to answer a basic question "What is public finance?" . Finance, or public finance, is an economics that studies the behavior of government revenue and expenditure, so it is also called public economics. It should be noted that the key issue studied here is not money itself, but the influence of government revenue and expenditure behavior on social economy, including resource allocation, income distribution, economic stability and growth. In fact, these three aspects are the three basic functions of the government. (See one of the literacy posts about finance: macro and micro) So why study finance? Some people say that finance is the best university course. I think this is a bit boastful, but there is no doubt that finance is very important. So, what is the purpose of studying finance? Are you going to the Finance Bureau or the Tax Bureau? Of course, I really hope that my students can go to the Finance and Taxation Bureau after graduation and have a job with stable income. But if you think that this is the only purpose of studying finance, you are all wet. The Finance and Taxation Bureau is only a department that manages money for the government, while finance studies the income and expenditure behavior of the whole government department. As far as the corresponding relationship is concerned, finance not only corresponds to the financial and tax departments, but also corresponds to the whole government or public sector. In my opinion, the ultimate goal of mastering financial theory is that it can help us understand the government, have the ability to analyze and evaluate policies, and be able to supervise, criticize and suggest the government's behavior as a citizen. It doesn't really matter whether you can get a job in a government department. Being in the wild is a pleasure.