How the UK Prime Minister should implement the fiscal policy at the Essay

How the UK Prime Minister should implement the fiscal policy at the time of recession - Essay Example Fiscal policy can be used to curb economy shocks such as recession. This paper is a critique of how the prime minister of UK can implement fiscal policy at the time of recession and the economic consequences of the policy. The government can decide to use taxation to regulate the economy by introducing tax incentives or increasing taxation to finance investments. An increase in income tax decreases the net income of individuals. This has the effect of lowering labour productivity as workers do not want to work more hours since they are demotivated.Others may decide to work more hours in order to cover the raise in tax .On the other hand, lowering the starting rate of income tax leads to increased labour productivity and efficiency and also labour supply hence decreasing the level of unemployment and increasing economic growth (Creel & Sawyer, 2009). Indirect taxes have the effect of increasing or lowering demand for goods and services. An indirect tax on goods such as duty leads to increase in its price and consequently decrease in demand and vice versa. On the other hand, if the government decides to give tax incentives to producers, this will decrease the cost of production and consequently the price of the products. As Barrell (2004) notes, reduction in prices has direct impact of increasing demand for the commodity hence increased economic activities. Taxation is also a tool for attracting domestic and foreign investments. If a government wants to attract investments, it reduces corporation taxes as well as business taxes. This in turn encourages fixed capital investments by businesses in terms of new machines, technology advancement, developing workers skills as well as developing infrastructure hence more economic development (Creel & Sawyer, 2009). Government also can give tax allowance on research and development and consequently more businesses are set up creating more employment and increasing

Babbitt by Sinclair Lewis Essay Example | Topics and Well Written Essays - 750 words

Babbitt by Sinclair Lewis - Essay Example Examples of these contradictory human traits abound throughout the novel. George believed in material possessions as definitions of his worth, but his discontent with them is evident thus: He hadn't even any satisfaction in the new water cooler! And it was the very best of water coolers,..(p. 26 Chp. 3). His weakness regarding attempts to stop smoking is frequently portrayed, with little plans to thwart himself, such as locking his cigars in a filing cabinet and hiding the key, and his many promises to quit. After his Maine vacation, he had to leave the train to buy a cigar, then later our days later, he again remembered that he had stopped smoking, but he was too busy catching up with his office work to keep it remembered.(p. 116 Chp. 12) When he found himself accepted as a good orator, at the real estate convention, he was full of bombastic pride, but also a simple pleasure in having his ability so recognized. guess some of the folks on Floral Heights will sit up and take notice now, pay a little attention to old Georgie!(p.128 Chp. 13) There is much endearing boyishness in his enthusiasms and frequent attempts to improve in many areas of his life. His continuing success as an orator has something sadly nostalgic about it, as Babbitt harks back to his unfulfilled desire to have been a lawyer. His snobbery and social climbing were evident when, after the alumni reunion, he and Mrs. Babbitt gave a disastrous dinner party for the rich McKelveys. He rationalized the fact that these people would not be their friends by telling his wife ut I like to have a chance to visit with you and the children instead of all this idiotic chasing around.(p. 152 Chp. 15). hey did not speak of the McKelveys again.and these words were applied to the Overbrooks, whom the Babbitts considered beneath them, again after an awkward dinner. Both instances demonstrated the good and bad in Babbitt's character and values. Love and loyalty were shown where Paul Reisling was concerned. Babbitt defended his friend, managed a week of freedom for him from his nagging wife, Zilla and rushed to the prison after Paul shot her. 'm not going to be moral, I just want to do anything I can.(p. 204, Chp. 22) He even offered to perjure himself to get Paul his freedom. With his family, although he found them hard to tolerate, Babbitt showed concern always for their well-being and futures. He spent time with Tinka and Myra and never ignored Ted or Verona, despite their annoying him. When he changed radically in his attempts to break away from his conventional life, he seemed to embrace all that was opposite to his previous character, drinking, dancing, having the affair, and criticizing his old friends. But he showed kindness, loyalty and love when Myra got sick, and returned to being the character first portrayed at the beginning of the novel. There was a depth of self-awareness in the handling of Ted's youthful marriage and desire to leave university. His reactions and advice to his son showed him as an empathetic and even likable character, despite what is known about him. 've never done a single thing I've wanted to in my whole life! I don't know's I've accomplished anything except just get along....Take your factory job if you want to...Don't be scared...of yourself, like I've been. Go ahead old man! The world is yours!(p. 305 Chp. 34) In