Sunday, June 16, 2013
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42nd CTP (PAAS)
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Join Date: Jun 2011
Location: Multan
Posts: 569
Thanks: 475
Thanked 657 Times in 291 Posts
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Quote:
Originally Posted by Bilal Hassan
[B]Oh My friend i must say that you are also considering yourself omniscient.....please get out of such euphoria that you know everything and others are just ignorant.....There is no an ignorant person than the one who considers him/herself omniscient.....So get out of that euphoria that only you know everything.....
Now coming to your point.....I think we are talking about Macroeconomics here so you must take into account the universal effect of the Income equation..... The Fiscal policy that targets the Taxes and other revenue sources is a tool that is used to achieve economic stability.....Taxes are essential to generate revenues and bridge the whooping gap of Fiscal Deficit.....
Now you are saying that we are hampered more by Cost Push Inflation and not by Demand Pull inflation, now you see that if we do not generate more revenue and salaries increment would widen the fiscal deficit, that gap would be bridged by one tool that is Deficit Financing, the more money given in the hands of people would make them demand more, Keynes theory of Liquidity preference says that all these motives for what people prefer to keep money with them are those that would create demand pull inflation.....
You are again asking me not to discuss these theories and feel the pinch of people that they are suffering from, dear i would say that the purpose of Positive/Analytical economics is just to analyze the economic theories not to become emotional.....So there is no place for emotions in economics.....[/B]
P.S.....It is a very humble request that never try influence other person by saying you don't know anything, people use that tactics when actually they don't know anything.....So my dear friend if you want to make progress in something, follow the rule of Skepticism, doubt your capabilities and knowledge because when you start thinking that you know everything, the door to further progress closes.....I hope you would take into account that request of mine.....
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Where did I say I am omniscient?
Yes I agree taxes are essential to bridge the gap to overcome fiscal deficit I never denied. But where its written that fiscal deficit can only be overcome by Indirect taxes??? You did not reply to my query that why only Indirect taxes??? Why not Direct taxes??????
Mention of Liquidity preference theory is irrelevant here. People need increment in salaries not to keep money with them but to improve standard of living, meet both ends in this rising inflation and to save for investment which is the driving force for economy.
There is one other branch of economics namely development economics. Positive/analytical economics does not close the doors of welfare and development economics. Dear in Pakistan we need the solutions of problems not just a heating debate. Emotions does play important role in human behaviour and Economics is indeed the study of human behaviour. 
There is a humble request from my side also. Please don't get biased for the love of a political party to the extent that you close your eyes on reality.
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