THE SIGNIFICANT OF WELFARE ECONOMIC PDF

Preview

Summary

Title : The Significance Of Welfare Economics To The Housing Market. Welfare economics is characterized as a branch of economics that studies how the distribution of income, resources and goods influences the economic wellbeing (Marshall and Pigou, 1890). Each individual will enjoy decent standards ...

Description

Title : The Significance Of Welfare Economics To The Housing Market. Welfare economics is characterized as a branch of economics that studies how the distribution of income, resources and goods influences the economic wellbeing (Marshall and Pigou, 1890). Each individual will enjoy decent standards of living with these welfare economics. Welfare economics is actually on how the economics changes can be accessed in terms of welfare implications that affects individual in society. This includes efforts to create a quality of living prospect within an area such as the higher education institution projects.Welfare economics can be divided into several categories including educational. Educations institutional are the essential facilities and services that facilitate which help in the economic growth of the country. The objective of this essay is to derive the significant of welfare economics in general and to identify the role of welfare economics to the housing market. According to (Adam Smith, 2005), he believes that economic growth of the wealth can raise the social welfare. Welfare economics is very significance because it can give more service to increase social welfare of the society by providing education. For example, education gives knowledge to people in productive skills to increasing employment for consumption to the community. Education will increases a chance to get a good job. If you are having abilities in one particular field then absolutely your skills would be appreciated. Education can bring about awareness and increases opportunity for growth and development. Furthermore, the level of prosperity and quality of living standards in an economy also considered as a significance of welfare economics that focusing on the optimal allocation of resources and goods (Kriniteyna, 2016). Standard of living refers to the level of wealth, comfort, and material goods. The factor of standard living includes income, quality and availability of employment, transportation, quality and availability of education and others. For example, quality of availability of education will influence the people living standards. The development of educational quantity makes the development of economy, health care system and social services. This essay will focus towards the role of welfare economics from the perspective of education. Based on the study, education will increase the housing development in the surrounding area. Education is very helpful in growth of regional development such as University of Technology MARA (UiTM) Kampus Puncak Alam, Selangor. Previously, Puncak Alam area is nothing more than an oil palm plantation. When the development of the university start, there are more housing unit are going to be developed nearby the university area. According to The Edge Property, ”Puncak Alam has begun to blossom as a new property projects”. The existence of the university definitely turns this area from rural area to urbanize area. The developers grab the opportunity to build more residence to fulfill the demand. From this article it is clearly that more housing unit will be

developed in the area of Bandar Puncak Alam. Another proof is from The Edge Property, said that “EcoWorld‟s Rumah Selangorku project will be developed”. From this evidence, it can be said that the development in the surrounding area of the campus are developed according to the economic condition of the people living there. Education also has been seen as a key catalyst for further development in Puncak Alam. When the development nearby that area are going to build more house, the people that living there will need more facilities around that area. Before the existence of the campus, the committee in Puncak Alam are having troubles buying goods and have to travel far to the nearest town to get the needs such as household items, medication and services, but when the university are located in this area, these issues are no longer a big issue. From The Edge Property,it is stated that, “Hillpark will deliver 3,900 units of commercial shops by 2019”. When the existence of such universities, many investor can see the opportunity that exist in that area,they will be interest to invest in these area. From the citation, we can say that more new shop unit was built to ease the local population. Apart from that, hypermarkets also were built in this area. Another article is from The Star Online, it stated that, „The commercial project consisting of two and three storey shop offices in Puncak Bestari, Puncak Alam, was also launched‟, which means other commercial building will be develop in the area of the education institution. Now, almost all the necessities in the Puncak Alam area have been fulfill. In conclusion, this essay has identify the significant of welfare economic which are increase the social welfare of the society and increase the quality of living standard. While the roles of welfare economics to the housing are the education will increase the housing development in the surrounding area and been as a key catalyst for further development. All the evidence shows that education will encourage demand towards housing market. Logically any property that having an educational institution nearby are a better place to living especially in the township area. This issue may ease their daily activities due to fully satisfy their needs. It also will encourage property demand in some area. Properties owners will enjoys more benefit from the rental yield that increasing from years to years due to rental from the students. Recent statistics stated that the “population of Bandar Puncak Alam is about 250,000 while UiTM expects an enrollment of 60,000 students in 5 years time” from that, we can conclude that, education is the main catalyst to the increasing of housing market value and also will enhance certain area to be a place of high in demand.

(937 WORDS)...