Economy Taxes are Good Especially at the Macroeconomic...

Taxes– the word which sent ripple effects once the mind interpreted the word. A surcharge, something paid above and beyond the good you’re paying for. At times one might burst boughs of anger in coloured word as your initial calculations on what you were going to pay are wrong. Wait a minute, those taxes are working for us– or are they? If you look at the economy at a macro level, it doesn’t take a genius to see that taxes are generally good. When looking at the expenditure approach GDP=C+I+G+Nx hence one can conclude that an increase in G equates a higher GDP. That conclusion isn’t without merit, (See Fig. 12.) however, it certainly has it’s flaws. Jean-Franà §ois Minardi, attempts to challenge this global approach in his economic note ‘The Unintended Consequences of Taxes on Tobacco,Alcohol and Gambling’. Attacking what really make’s up these so called ‘Sin Taxes’ he says â€Å"Sin taxes are presented as a way of increasing government revenue while simultaneously helping reduce consumption of targeted products.[..]if the first is achieved and consumption of these products starts to decline, this will lead to a reduction in government tax receipts.1† Indicated that if the motive of the government was indeed to reduce consumption, they’d subsequent ly want to decrease GDP. Looking at the same model. A decrees in consumer spending not only directly effects GDP but also effects the governments revenues which in turn effects their spending power, thus ultimately lower GDP evenShow MoreRelatedFactors That Affect The Value Of An Economy1262 Words   |  6 Pagesvariables or characteristics employed to estimate the health or strength of an economy, known as macroeconomic variables. This can include the following: The Inflation Rate It is referred to as the constant rate of change in the price level in the economy. Many economies encounter positive rates of inflation yearly (Sommers, 2005). Mostly, the price level is usually measured by a price index, which evaluates the price level of goods and services at a particular point in time. Again, the number of items containedRead MoreNotes On Macroeconomic Policy And Monetary Policy974 Words   |  4 PagesReorienting macroeconomic policy Feb 12th 2010, 16:33 by S.D. | WASHINGTON This article is written from a positive standpoint it also discusses Blanchard and Co.s list of the oversights and mistakes of Great Moderation macroeconomics and macro policy. Which include some items I will discuss such as: fiscal policy, monetary policy, monetary policy focused exclusively on inflation and used only one target the policy rate, and financial regulation was in its own silo, outside the macro policy frameworkRead More The Circular Flow Model Accompanied by Reverse Flows Essay1115 Words   |  5 Pagesthe resource market, households, product market, businesses, and the government. Macroeconomics - The study of the aggregate (total) Behavior of the whole economy. Macroeconomics Aggregates: - Unemployment rate: Percent of people in the labor force is not working but searching for work. - Inflation rate: Percent rise in the average price of all goods and services. - GDP: Dollar value of all final goods and services produced within a country in a given year; output A Market isRead MoreCircular Flow of Economics1138 Words   |  5 Pagesof the resource market, households, product market, businesses, and the government. Macroeconomics - The study of the aggregate (total) Behavior of the whole economy. Macroeconomics Aggregates: - Unemployment rate: Percent of people in the labor force is not working but searching for work. - Inflation rate: Percent rise in the average price of all goods and services. - GDP: Dollar value of all final goods and services produced within a country in a given year; output A Market is an institutionRead MoreEssay on Macroeconomics Stability1407 Words   |  6 Pagesabove statement that macroeconomic stability as well as building long-term growth have been critical in the success of these countries. What is macroeconomics stability Macroeconomics stability refers to sustainable economic growth, low and stable inflation, low and stable unemployment and a sustainable balance of payments (BOP) position. These are the four goals that are important for any country to maintain macroeconomic stability. These are measured by key macroeconomic indicators such as GDPRead MoreWhy Is Economics So Vital For Any Sovereign Nation?878 Words   |  4 Pagesa social science that determines how well a civilized nation operates through financial policy, productions of goods and services, and jobs. Frequently in political speeches politicians stress how imperative it is to reduce unemployment and repair a failing economy. I always thought to myself, what were the underlying causes of these issues and how are they resolved? With macroeconomics you can get a basic understating of concepts that deal with unemployment, inflation, business cycles, taxationRead MoreMacroeconomic Theories Of Macroeconomics And Classical Economics999 Words   |  4 Pages Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. With microeconomics, macroeconomics is one of the two most general fields in economics. There are two major macroeconomic theories that economists use to describe the economy. Those theories are Keynesian and Classical. Each theory has a different approach to the economic studyRead MoreDo Fiscal and Monetary Policy Stimulate the Economy? Essays1467 Words   |  6 Pages Constant changes in market economies make it nearly impossible to maintain a constant level of economic activity. Fluctuations are the heart of market economies; market economies cannot exist without them. These fluctuations can be described as the business cycle, and like every cycle there are a series of events that construct these phases. The business cycle consists of three phases, expansion (until peak point is reached), a decreasing point into recession, and a rebound from recession to recoveryRead MoreMacroeconomic Objectives Of The Malaysian Economy1542 Words   |  7 PagesFour macroeconomic objectives In this section I will be discussing how well does Malaysia manage to achieve the four macroeconomic objectives which are; high and stable economic growth, low unemployment, low inflation and avoidance of large balance of trade deficit. One of the ways that Malaysia’s economy plan to reach the goals of high and stable economic growth is by implementing a fiscal consolidation â€Å"The Malaysian government has embarked on fiscal consolidation† (Ratings and Investment InformationRead MoreUnited States Military Academy : Causes And Effect1346 Words   |  6 PagesCoddling the Super-Rich† proposes increasing taxes on the zenith socioeconomic class will respite levy burdens on working class Americans, however it fails to recognize various negative effects such as over-inflation and decreasing consumption. Buffett’s suggestion to increase taxes on the rich would result in an overpriced economic climate; making it harder for underprivileged to purchase goods at r easonable costs, suiting their wages. While it is certainly in good faith that Warren Buffett recommends taxing