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The Right Path

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The United State’s economy is still reeling from the recession that it recently went through. Investors are wary, unemployment remains stubbornly high, and the restrictions on credit have been tightened. All of this does not make for a conducive business atmosphere. With the economy teetering, it is very difficult for investors to confidently put their money into the economy. Many people have called upon the government to provide the foundation and confidence necessary to stabilize the economy by infusing it with cash and changing the regulatory environment. Other ideas that have been floated have been the raising of the minimum wage and the altering of tax rates, all with the intention of adding more money to the economy. Yet, history has shown that some government policies do actually help the economy get back on its feet while others have no bearing or are even deleterious to the economy’s health as a whole. Whenever the economy begins to wobble, one of the first culprits people point to is tax policy. Whether they believe that the tax rate is too high or too low, there is always something to gripe about. The best policy to aid an economy’s recovery or give it an additional boost in boom times is always a tax cut. This can be engineered either as a straight up tax cut or as a rebate to taxpayers. Both methods leave more money in consumers’ and companies’ coffers, allowing them to spend more freely. This additional money in the economy causes a greater demand for goods, which in turn drives companies to produce more products. To do this, companies must hire more workers, which in turn gives these previously unemployed people more spending money, allowing the cycle to feed upon itself. Another idea which has been raised h... ... middle of paper ... ... The unseen market gods will see to it that the economy is prosperous, and government should stick to its original role of protecting citizen’s fundamental rights (Goodman). Works Cited Goodman, John C. "What Is Classical Liberalism." National Center for Policy Analysis. N.p., n.d. Web. 27 Dec. 2013. Landsburg, Steven E. "The Greatest Story Nobody Knows About." National Center for Policy Analysis. N.p., n.d. Web. 27 Dec. 2013. . Read, Leonard E. "I, Pencil." National Center for Policy Analysis. N.p., n.d. Web. 27 Dec. 2013. .
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