William et al, gives opinions on the President’s proposal to push the taxes up mainly for the high-income earners. From an economic point of view, if the policy were put in place, it would affect all the sectors of the economy. The increase in taxes would result to; increased investment cost, In addition, it would lead to reduced working incentive, decline in the private sector and decreased supply output. How does it reduce the cost of investment? Due to high tax change on both labor and investment incomes, it reduces the willingness of investors. It also reduces their ability to save making creation of capital difficult. Decrease in creation of capital leads to a low production capacity of the economy leading to excess labor. Less labor leads to less output.
The article gives a summary on the tax effect on the Obama government, if the plan is administered. The economy is a dependent variable to the factors of production. In the long-run the use of high taxes will not solve fiscal imbalances. Tax increase leads to a reduction in federal revenues and leaves the economy weak. It recommends the government to address the real cause of imbalance, which is entitlement spending as well as reforming federal tax so as to minimize economic growth limits. The article dwells on the real issues that can influence a general economy but does not give new ideas in solving the fiscal imbalances in the US economy.
The Essay on Dicuss whether monopoly always lead to an increase to inefficiency?
Question 3: Discuss whether monopolies always lead to an increase to inefficiency? Monopolies, in economist mind they are bad, however, not all things that monopolies do are bad, and they also bring benefits along side the negative effect. First, monopolies have an advantage of research and development. Monopolies can achieve supernormal profit, as they can set high price to a certain product, ...
Reference
Beach, W. W., Ligon, J. L., & Nell, G. (2012).
The economic and fiscal effects of the Obama tax plan. The Heritage Foundation. Np, 14.
