Expansionary Fiscal PolicyExpansionary fiscal policy means that the government will increase government spending and reduce taxation in an attempt to increase the money available within the economy. Expansionary policy is a way of trying to jump start the economy. Generally cutting taxes or spending more and could mean a deficit. Its purpose would be to increase growth and reduce unemployment by increasing the demand for labour. The way the government goes about this is that they will lower the tax rate causing people to buy and spend more which will result in a higher demand for labor and resulting in higher demands for goods since the people are spending more. Though this sounds as a good idea it can also lead to inflation. Contractionary fiscal policy is basically when the government chooses to increase taxation and reduces government spending in an attempt to reduce money in the economy as the result due to inflation.
I think currently in this economy the best option would be contractionary fiscal policy would be most appropriate because the government spending. Its the fixing of inflation though taxation is increased it limits how much the government spends which includes government assistant programs. I am not against government assistant programs but with a large number of people on these programs it can result in over spending and cause the economy to go into debt especially if a higher percentage of people are unemployed and on these programs than they are people working. This may affect my organization because with higher taxation means that pay checks will be less causing many people to spend less and those in my organization to want to work over time without a higher demand for goods and a higher demand for labor it can cause a bit of conflict.
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As a business, our business is to provide products and services in exchange for benefits that we give to our own staff. As we pay for these benefits, we’re helping to get paid. Since we are not paying people for these benefits, it leads us to more competition in the marketplace and the higher prices of those products and services. To put it simply, we often choose to give away more to our customers because you’re creating more and more competition as well, causing higher prices for other products and services.
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For instance, a person on a low income working full time on the minimum wage might say we can’t meet our minimum wage. Our employees might not be able to be employed. As a business, our business is to provide products and services in exchange for benefits that we give to our own staff. As we pay for these benefits, we are helping to get paid. Since we are not paying people for these benefits, it lead us to more competition in the marketplace and the higher prices of those products and services.
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If we are to be competitive it is important to be willing to give away services and products to our customers that exceed our minimum wage requirements. If this is possible, what kind of goods and services can we provide to our employees?
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Our company’s product and service delivery is based primarily on the ability given to employees to work a minimum wage. This is highly contingent on how many other people (including other people without a business membership) do not want to work and what level of service delivery is provided when workers do not have a specific job description. As long as we are willing to pay for it our customers can choose from a variety of products and services that will make things easier for both our employees and our business.
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While we have our customers, how can we contribute to the long term results of raising our minimum wage? With our companies this can be achieved by raising employee benefits while reducing expenses while keeping expenses balanced. As a business, our company is to provide products and services in exchange for benefits that we give to our own staff. As we pay for these benefits, we are helping to get paid. Since we are not paying people for these benefits, it lead us to more competition in the marketplace and the higher prices of those products and services. To put it simply, we often choose to give away more to our customers because you’re creating more and more competition as well, causing higher prices for other products and services.
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For instance, a person on a low income working full time on the minimum wage might say we can’t meet our minimum wage. Our employees might not be able to be employed. As a business, our company is to provide products and services in exchange for benefits that we give to our own staff. As we pay for these benefits, we are helping to get paid. Since we are not paying people for these benefits, it lead us to more competition in the Marketplace due to higher and higher prices of these products and services.
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When looking at the long term costs of raising our minimum wage, what are the alternatives to raising it higher on current market norms?
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