Communication in Economics Essay Example | Topics and Well Written Essays - 500 words - 2

Communication in Economics - Essay Example omic policy is based on the pioneering work of many economists who are of the view that raising income taxes specially and taxes generally are beneficial to the long term viability of the economy. It means raising income taxes will ensure that our future generations will have strong economy to build on when they will find that they money their forefathers have sacrificed in creating and developing the economic infrastructure of this very great country of ours. I must tell you, ladies and gentlemen, that cutting taxes means curtailing essential services like curtailing school hours, less Medicaid as well as result in tuition fees at public universities if government’s targets for raising the targeted revenue is not achieved and as for as I know, lowering income taxes is one of the biggest contributors towards not achieving the revenue targets by the government. Ladies and gentlemen, the current recession which our country is facing due to issues like credit crunch caused by sub-prime mortgage market can really be avoided if government increase fiscal expansion and fiscal expansion can only be achieved if we raise taxes so that money raised through these taxes is ploughed back into our economy to make this economy running on solid footings again. I also would like to point out towards the economic theories of Herbert Hoover who advocated the balancing of budgets in short term despite the facts that this can damage the economy. In a sluggish economy the only option left to economy is to increase the demand for goods and services. Due to sluggishness of the economy, firms tend to carry over excess capacities therefore in order to reduce these excess capacities, the demand for good and services need to increase. However, raising income taxes in such a way that those earning in higher bracket are taxed higher so that those are in the lower inco me groups can benefits of the distribution of nation’s wealth without sacrificing cuts in government spending on essential