Analyze and evaluate the impact of public policy on economic

Analyze and evaluate the impact of public policy on economic growth from an ethical and global position. Be sure to be specific as to which ethical posture you are taking. See this website for information on ethical postures.

Also state whether or not you enjoy these types of evaluations and if you would consider these types of responsibilities in a future career.

Solution

If a public policy demands economic growth, it has to use its resources i.e. land , labour, capital, entrepreneur to the best among the various choices available before the economy. It should be self reliant and the government should try to maximize its ouput and employment using the idle resources to the optimum, Among the available resources, it should try using the idle resources and improve efficiency. There should be little burden on the consumer and if there are anticipation of loss, the government should try to regulate taxation policy. This would improve investment and the output. There would be increased money supply and at a stable bank rate, the consumer would get more savings and hence receive profit with increased interest rate. Employment of resources would improve employment .

If the public policy is globalised, there would be huge inflow of money. By increasing tarriff and custom duties the government would have profit by investing in public fund and foreign investment . Incentives would be given to foreign companies. Among the domestic output, there a policy of CENVAT ( central value added tax) would increase income and the economical retardedness would be evaded. The idle black money should be obtained by taxation and there would be little tax evasion. This would be the tax policy.

By,

Nishant Bhatt