Monetary and fiscal policy - Essay Example

Through tax cuts, my firm will save very many jobs that previously would have been lost. When utilized, tax cuts save many jobs and this in return helps in saving the economy from taking major shots. Because a firm like mine is not a popular decision at the time tax cuts were available, when the distribution of tax cuts are fair to deserving companies, history proves that they end up being the best (Shiller, 2008). I am sure on this one and I have to admit. Yes, tax cuts have effects with the major one being saving jobs.

But the question that keeps coming on my mind is do such firms like mine get fat checks with only those in high ranks getting rich while the person with a low rank in the food chain continues to struggle. This makes me think that the government should take time and look at the financials of companies it plans to bail out for the purposes of looking and seeing whether it might cut the fat. This does not seem to have an impact and effect but as an owner of my firm, I know well the effects that imposing tax cuts on all household goods can have.

This in short is bailing a company out and the effects start from within where employees can even get an increase in pay (Shiller, 2008). 2 In the past few years, the government has had an important role in "bailing out" certain industries. This is a type of government spending. This government bailout affected my firm directly since the promises that the codes give are to uphold the regulations of businesses, to act with transparent facts, without malice, and with reasonable care that will suffer from any pressure coming from third parties.

Business freedom demonstrated to the second party auditors that are independent is what the corporation cherishes (Shiller, 2008). Unless dully authorized, the bailout codes of ethics bring the employees tight together to maintain the corporation’s confidentiality, which is vital. Another promise is ensuring all employees have exceptional quality communication flow and regularly to update the government on any financial matter that comes up in the business. It adheres to everything it says and follows it to the letter.

In the recent past, economists do not have trust in government bailouts in terms of the nation’s well being. They have been proposing for alternative measures like the profits giving reasons why bailouts are not good enough. Below are their outlined reasons (Shiller, 2008). A bailout leaves out many goods by only counting money transactions. There are many disregarded important parts of the economy. For example, most household tasks like caring for the children and the elderly, cleaning and general home maintenance, preparation of food and voluntary services do not get into account.

During the calculations, bailouts zero rates all these activities assuming they do contribute anything to the economy. This alone contributes a lot to distorted policies of the public. In cases where family act gets criticism of bailouts reduction, the denigrations are baseless because it does not reflect the increments in many economies of the household initiated by the act (Shiller, 2008). A bailout takes care of all dealings as positive. Government bailouts