How Taxes Affect Economic Efficiency Essay Example | Topics and Well Written Essays - 1500 words

How Taxes Affect Economic Efficiency - Essay Example According to Keynesians, tax cuts have a negative impact on the growth of wages (Ryan, 2011). There are some countries where governments encourage international trade while on the other side, some raise barriers. Some governments impose just enough tax to support various government expenditures while some levy taxes which burden the whole population (Kroeger, 2011). Adam Smith is revered in the field of economics because of his remarkable work on free-market economics and taxation. There are many economists of the modern times who consider Adam Smith the best tax economist of all time. According to Smith, the resources of a nation are allocated in the most efficient manner through an 'invisible hand'. According to Smith's view, taxes should be levied in such a way that they optimize and satisfy four variables. These variables include equity, transparency, convenience, and efficiency. According to Smith, by imposing limited taxes, economies can maximize their wealth (Kroeger, 2011). T axes are imposed by a government to support some basic functions. These legitimate functions include education, defense, and the construction as well as maintenance of roads. In a market economy, the allocation of resources depends on the forces of demand and supply. In order to understand the ultimate impact of tax on economics, it is imperative to evaluate this impact in terms of the purchasing power of individuals as well as the economy's aggregate supply. One of the basic concepts of economics is that an increase in demand leads to the production of more goods and services in order to fulfill the demand. It implies that if producers can sell more because of an increase in demand of their products then they need to produce more goods to satiate the increasing demand. The imposition of tax deprives tax payers from a portion of their money that they would have spend on consumption. If it is accepted that the imposition of tax only deprives people from money than it would be conclud ed that taxes have a negative impact on economy. However, by looking at the other side of coin, it can be comprehended that the money which people spend on taxes eventually turns into government's income. Government spends this money on the welfare of the public which in turns enhance the economic growth (Kroeger, 2011). The income of one person depends on the spending of others. When government spends the money, it ultimately turns into the income of the public. Similarly, when the public pays taxes, it becomes the income of the government. So, it is wrong to say that the imposition of taxes drops the aggregate spending in fact it causes it to increase. If tax payers save their money instead of paying taxes, it will impact government expenditures and will decrease the overall consumption and in turn the overall economic efficiency. Similarly, if government saves money and does not spend it then it would ultimately affect the public. It proves that the act of saving money is not ben eficial for the overall economy of a country but it creates problems. This act is really harmful for the economy of the country. A very obvious example of the harmful effects of this act is the Great Depression. The Great Depression occurs because people who could have opted for spending money chose to save it. However, those who wanted to spend money were deprived of it (Kroeger 2011). The long term expenditures of government increase with the growth of population. Therefore government needs money to

MySpace Essay Example | Topics and Well Written Essays - 2000 words

MySpace - Essay Example It truly represents a new generation in interpersonal communication and establishes a model for how the power of the internet can be leveraged to bring social networking to a whole new level. People are able to learn about others in a way they never before would have imagined. They can choose to engage with others based on a heightened level of knowledge and information that was rarely available prior to the advent of MySpace.com. Interpersonal communication has accomplished no less than enabling civilization as we know it to exist. It has evolved and advanced over millennia in order to adapt to ever changing socialization needs. Today's society is driven by technology. The ultimate destination for interpersonal communication is arguably a kind of networked culture in which the thoughts and ideas of each person are readily available to every other person. The power of the internet is essential to that end. MySpace.com is one of the pioneers in leveraging internet technology to make a giant leap toward the kind of networked social circle that is likely to be the most prevalent form of interpersonal interaction in the future. MySpace.com enables users to create their own web page containing blogs that describe their interests. It facilitates meeting friends with similar interests by allowing them to send e-mails through the site, join interest groups, and rate one another. Users can customize pages by adding photos, colors, designs and personal information. They can connect with others who share similar interests by joining groups based on preferences. For example, there are groups relating to religion, sports, food, nightlife and many other interests. MySpace's music interest groups have been the site of song premiers by such artists as Madonna, Coldplay, Neil Diamond and Depeche Mode. The site has become so popular that it receives more hits than eBay and Google. The traffic generated by the site has made it sought after by advertisers, with mass-marketers such as Target placing ads on the site, and new motion pictures being promoted there. Its tremendous popularity is a testament to the extent to which the site has filled a void in modern interpersonal communication in the technological age. This type of online networked social interaction solution has become an important outlet for communication. The anonymity of the internet has caused some problems when it comes to usage and application of services like MySpace. Teens often post photographs of themselves, as well as detailed personal information that could put them in danger. There have been reports of sexual predators trolling the site for potential victims; and investigations into sexual assaults that have occurred where teens have met the alleged perpetrators on MySpace. The site has caused great concern among parents who have observed indiscrete postings by their own and other children that contain provocative photos and personal details that could put their children at risk. MySpace has cats a spotlight on the risks of interpersonal communication in the age of the internet. How can it be observed Observation of MySpace.com has become a major concern for many parents, who have seen first hand the dangers the site may pose to unwitting children. While MySpace does have