Thursday, October 10, 2013

Chapter four; question four


4.) what solutions does the author propose to any problems mentioned? Who would implement those solutions? How probable is success?

"In all but the most extraordinary of circumstances, there is no free lunch. Lower tax rates mean less total government revenue-and therefor fewer resources to fight wars, balance the budget, catch terrorists, educate children, or do anything else the governments typically do. That's the trade off"( Wheelan 99).

The main focus of chapter four is government involvement in the economy. Specially taxes and their benefits to the government and burden to the people or vice versa.  Again with the no free lunch theme... In the passage above Wheelan talks about how lowering the tax rates would befit most people now it would also hurt them in the long run.  Lowering the tax rates may leave the population with more money in their pockets now. However down the road when the government has no money to protect its people or make sure schools have the latest resources these same people will wish they had payed more in taxes.  Like most things in economics taxes are a trade off.  The more the population pays in taxes the more they get from the government, although not every individual will feel the direct benefits.  After reading this chapter I came to the realization that this tax situation is a lose lose for everyone.


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