Journal opining article Essay Example | Topics and Well Written Essays - 750 words

Journal opining article - Essay Example Additionally, spending policies need to be well scrutinized prior to making any economic moves, especially in the present day world. Wessel adds on to indicate that, being able to change the spending policies and the tax policies is essential whilst considering the current economic times and changes in governance (11). Wessel explains that if tax reforms focus on increasing the economic growth rate, then the scorekeepers need to take into account the growth spurt including the extra revenue collected in a specific financial year (12). This aspect, which has a direct implication on the economy, finds support and backup from numerous persons. Wessel is of the opinion that significant legislation in the normal routine gets tweaked such that the tally matches the promises of the proponents not just for bragging rights, but it clears the hurdles in parliament (11). Wessel, in his article, claims that when campaigns culminate and there is legislation of the promises, the joint tax committe e and the congressional budget office makes decisions on the various proposals made (12). According to Wessel, so as to stabilize the economy, there is a need to consider basic precepts (11). This is to mean that the economy growth requires clear guidelines and operation mechanisms. Wessel explains that the precepts are that accounting should not interfere with the congress in passing legislation which improves the growth in the economy (11). So as to have quick glimpse of economic growth, accounting should not permit to the pretense of the congress that every cut in tax caters for its expenditure. It is also vital to note that accounting should also not allow the assumption by the congress that there is a cost free spending on education. This spending, according to Wessel, not only increases the productivity of workers, but also has a massive positive impact on the economy (12). Wessel also argues that at some point when there are numerous changes in the tax plan, the various autho rities that have the function of implementing the changes, figure out that people and businesses respond in the event that the congress puts in plans and changes (12). Some of the changes in relation to Wessel include cut capital-gains in the tax rates whereby, shareholders sell the profits that they have and consequently lead to a surge in the revenue on a temporary basis (12). Ian endeavor to increase spending and elevate the economy, there is a need to set aside funds to the Medicare providers. In the long run, this will lead to an increase in spending in the economy. Changes in the subsidies for farmers make them dedicate more energy to production, for instance growing more crops leading to more profit, which in turn are dedicated to raising the economy. According to the article by Wessel, official tags on legislation do not consider the results of a bill on the overall economy (11). In the view of Wessel, this can, in simple terms be referred to as dynamic scoring (11). Additio nally, whilst analyzing the fiscal policies in an economy, it is vital to note that the bodies that implement the tax rates do not incorporate the macroeconomic effects. Changing the rules made by the congress will therefore become incomplete and consume a lot of time. Changing these rules, in regard to Wessel, also depends on the models of the economy and requires judgment calls (12). The author explains that some of the bills put in place focus on extending income

Monopolies Essay Example | Topics and Well Written Essays - 500 words

Monopolies - Essay Example The demand curve of a monopolistic seller is the same as that of market demand, as the firm forms the entire industry. In the picture below (fig 1), the D represents the market demand for the product which is the same as the monopolistic seller’s demand curve. In a perfect competition, a particular seller takes up the price set by the market. Hence the demand is horizontal, in the case of this purely competitive seller. However, this line is determined by the market demand and supply curves. This difference in the demand curves of the two types of market structures is very significant. From fig. 1, it is clear that when the monopolistic seller raises the price of the product, the seller may lose some of its buyers. However, the firm will not lose its revenue. In the case of a purely competitive seller, the price is set by the market and hence any price above this will result in buyers switching to other sellers who offer the same product at the market price. All firms in any market maximise their profits when their marginal cost equals the marginal revenue (MR = MC). In the case of a purely competitive seller, the marginal revenue is the same as that of the firm’s demand curve. However, in the case of a monopoly, the marginal revenue curve falls twice as that of the firm’s demand curve (starting form the same point). Hence the marginal cost intersects the marginal curve at a very low value in the case of monopoly. Hence the monopolists maximise their profits by producing lower quantities at higher prices. The main phenomenon to be noted in the case of monopolistic demand curve is that, it is not typically purely inelastic. In the case of a purely inelastic demand, the demand for a product is not affected by the price changes at all. However in the case of a pure monopolistic seller, as said earlier, when the price is raised, the firm loses some of its buyers. The buyers generally buy a