Improving Physical Capital should by a primordial advancement that the President of Lisavia should invest in. If the President was to raise the citizens tax by as little as 1%, the country can use this 1% increase the overall advancements of many needed tools and factories. Through this tax, the country can give many factories and farmers an annual subsidy to allow them to invest into their manufacturing process. The firms that use these subsidies should have to claim these amounts on their end of the year tax report that is provided to the government, in order to make sure that the amounts are being used effectively. The President can also allow tax breaks for farmers and manufacturers, which will allow them to pay overall fewer taxes to maintain their firms at a working level with some of the financial stress removed. As for beginning firms the President should provide these companies with small loans that either have no interest in the first year or have a smaller interest rate. If the government help alleviate some of the financial burden from companies and in return more revenue is produced, then the economies productivity will increase and this will encourage other citizens to want to begin manufactu...
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...tax breaks just for bringing their firms from over sees and creating more jobs for the citizens. The firms that have high numbers of employees should be given bigger tax breaks because they are spending more money and creating more jobs. These firms can also take advantage of the afore mentioned Physical Capital investment subsidies.
To conclude, there are plenty of ways that the President can promote productivity for the country of Lisavia. Investing in Physical Capital is a good way to get the economy’s productivity level up because investing in Physical Capital will make easier to run farms and firms. Secondly, the government can focus on helping promote technological advancements, either for firms or by individuals. Lastly, once the economy is growing the President can focus on creating better opportunities for foreign investments to occur within the country.
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