Communication in Economics - Essay Example

Ladies and Gentlemen I am fortunate to address such an esteemed gathering here. I believe with your support and concern, we together can change the way this nation used to perform on economic grounds. Today, I am here to talk about a very important issue which my government is going to take care of once in office after winning 2008 elections with the support of patriotic people like you.My opponents are talking about lowering income taxes once they are in office however I am of the opinion that once we are in office, we will be raising income taxes.

Our assessment and economic 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 income groups can benefits of the distribution of nation’s wealth without sacrificing cuts in government spending on essential services.

I also wish to clarify a myth here which more people consider as true that increasing taxes do more harm as doing well to the economy. However, according to Professor Joseph Stiglitz, one of the noble laureates, suggest that tax increases on high income families is the least damaging mechanism to close the short term budget deficits and such increase will only result in decline in savings rather than spending therefore the economy benefits in the same way. (Stiglitz and Orszag).BibliographyStiglitz, Joseph and Peter R Orszag.

"Biting the Budget Bullet: Why Raising Taxes is the Least Painful Way Out of the States Fiscal Crisis." 27 April 2003. The Boston Globe. 29 Feb 2008 .