Fiscal policies are an integral part of the economic reconstruction of any country that is facing an increased rate of recession. Notably, high rates of unemployment reflect a depreciating economy created by poor fiscal and monetary policies adopted by a government. To this end, I propose various recessional intervention fiscal policies aimed at curbing the increased rate of unemployment and high rates of inflation. Key among these policies interventions include decreased taxation rates, tax relief incentives for companies and increased government expenditure.
To begin with, it is fundamental that the government puts in places policies that reduce the high rates of taxation to both companies and individuals in the low income segments. This will help to reduce the cost of doing business and increase the available disposable income among consumers that are key to sustaining employment creating entities ("General Policies to Improve Employment Opportunities for All," 2006, p. 29). One of the most common reasons that trigger the high rates employment is if the cost of setting up a business. As such, reduced corporate taxes for such entities will not only increase the existing organizations but also spur growth through increased investment portfolios for them.
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Offering tax relief for new companies is another key strategy to help curb unemployment in that it helps to attract new investors that critical to the creation of new employment opportunities. The assumption is based on the Keynesian theory of economics that arguably present the notion that investors are attracted to areas with better incentives. Finally, I would recommend the increased government expenditure to spur growth of the existing companies that do business with the government therefore creating more job opportunities for the unemployed citizens.
In conclusion, I believe the integration of these proposed fiscal policy changes will play a fundamental role in not only reducing the rate of unemployment but also spur economic growth that will go a long way to stabilize the inflation rates thereof.
References
General Policies to Improve Employment Opportunities for All. (2006). OECD Employment Outlook 2006 , 47-126. doi:10.1787/empl_outlook-2006-5-en
