... to spend on public sector services such as the higher education sector. Any instability or decline in the economy could affect the level of funds the government would have available to spend on the Higher Education sector, as during periods of economic decline unemployment is generally high and organisations profits low, resulting in the government receiving lower levels of revenue from taxation. They would be then faced with the choice of either lowering funds to the various public sector services or borrow in order to continue current funding levels. A declining economy may cause a slowdown in the yearly increase of students applying to university as with a shortage of cash, their parents may struggle to offer them financial support if they continue into Higher Education. A declining economy could also affect the job prospects and wage levels of graduates, as during periods of economic downturn the number of business reinvestments and ...

See this essay or coursework document in full right now