Economic Critique Essay Example | Topics and Well Written Essays - 500 words - 1

Economic Critique - Essay Example In principle, they would push the excess or extra tax to the customers and buyers of their products and services. Conventionally, the increase in princes due to increased taxation implies that the level of goods demanded would reduce since the people would not be in any position to buy. The law of equilibrium demands that for the markets or economy to clear, then demand ought to be equal to supply of goods or services. If the demand would reduce then the supply would also reduce in equal proportion. In the recent past, the Obama administration and the government at large has been pushing for a change in the fiscal policy relating to reduction in general taxes levied to the people especially those of the poor classes. This move or fiscal move is expansionary in nature. This is the situation where the government seeks to reduce the level of taxes that is levied to people especially the poor people in move aimed at cushioning them against the hard economic times of the current day and age. John Keynes as a pioneer economist and thinker advocated for the expansionary policy where the government reduces the taxes levied on the citizens to cushion them during inflation or times of economic anomie. In the field of economics, this expansionary move is taken and aimed at reducing the budget surplus and get the economy back to recovery path. On the contrary, the classical view is slightly different relative to the above position and stance. The classical economists are of the opinion that the expansionary moves and policies are completely unnecessary and would create an unnecessary disturbance on the economy. This is so because the classical economists believe that there are necessary and appropriate mechanisms in the market or economy which would correct and clear the market and economy on their own. This is to say that the market has