Question

Instructions from Professor:

1. What will you be looking for in a political candidate the next time you vote, in terms of economic philosophy and economic policies? What have you learned so far that has influenced your position? Have any of your ideas changed? Your essay should be at least 200 words.

Answer 1

Next time when I vote I will keep an eye on the mandate of the political parties that relates to economic philosophy and economic policies. I wish to see something that boost the employment generation in the economy because no matter how well the economy does on the other fronts, say price stability or whatever, unless there is not sufficient income that is being earned by the growing population, the demand generation will not be enough to sustain the economic growth that the economy wish to pursue. At this stage there is a lot of investment that is going into research and development ,this in investment is largely aimed at reducing cost of production through innovation of new cost reducing production techniques or introducing new products to capture market share. However the benefit of these are not passed on to theconsumers. The consumers even after so much technological advancement and cost reduction by the big businesses, are paying a greater fraction of their income on the consumer goods only, which have implications on the purchasing power at those higher prices. Thus policies that aim at limiting the mark up abilities of the firms will be noticed by me positively. Besides, there is a need to expand the consumption and saving rates both at the same time so that there is enough funds available for the private sector and also to make general public enthusiast about saving so that there is a constant flow of income over the life span. For this an increase in the interest rate (the govt may collude with the central bank and bring out some sort of policy that would work toward this) and a tax cut is also what I will be looking forward to see on the mandate list of the political parties.