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7563LHS Research Methods
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7563LHS Research Methods
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Course Code: 7563LHS
University: Griffith University
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Country: Australia
Question:
The Fraser Institute is a Canadian think tank that believes in a competitive marketplace, lower taxes, and less regulation. It supports a limited role for government in the marketplace. Review some of its research.
Answer:
Economic Freedom
The Fraser Institute asserts that economic freedom has four cornerstones namely personal choice, market coordinated voluntary exchange, freedom to enter the market, protection of property and persons from aggression by others. The institute further states that individuals are said to have economic freedom when their acquired property without using theft, fraud, or force is protected from physical invasion by others. In addition to this, the property is should be freely used, exchanged or given provided that there is no violation of other people’s identical rights. In other words, individuals have the freedom to choose, cooperate and trade with others as well as competing as they see it fit [1].
Research on the economic freedom of North America measured the extent to which the policies of individual states and provinces were supportive of the economic freedom. They examined the state/provincial and local/municipal governments comparing individual jurisdictions within a country also in different countries. For Canada, Mexico and the United States, the results showed that Canada has been ahead of the United States which by the way is far much ahead of Mexico. The 2015 annual report indicated that two of the top three jurisdictions were from Canada. Alberta was the in first place followed by British Columbia and New Hampshire tying in the second place. In 2015 however, Alberta and Canadian new governments came up with policy changes in spending and taxation that affected negatively their economic freedom. This gave Alberta a tie for the first place with New Hampshire.
Democracy and Governance
Product and peaceful societies are usually based on state institutions that are effective [2]. In other words, efficient and effective structures that provide support to citizens so as to lead productive and safe lives should be enforced. In order to ensure this happens successfully, there should be a combination of the rule of law, the social welfare state, and democracy [3]. Good governance extends beyond governments and engages relevant actors from society and the private sector. The main objective of democracy and governance is to focus on the common objectives and balancing interests and also to make structures that are administrative, solution-oriented, efficient, and participative [4].
A research done on measuring the impact of the 2017 election on uncertainty in British Columbia showed that policy uncertainty and political uncertainty are amplified and linked under minority governments. In both spheres of uncertainty, there is the repercussion of low business investment which in turn drags the economy behind. The research showed that varying levels of political uncertainty. Comparing the elections held in 2013 and other years’ previous elections, we can see that there was a dramatic and immediate drop in uncertainty which was not the case in 2017 after the election. The uncertainties were focusing more on who will govern as well as the policy NDP and Green alliance parties created. These policies were connected to the economy, taxation as well as pipeline and energy policy. More persistent policy uncertainty and political uncertainty is likely to be seen if the government proceeds with electoral reform commitment leading to more coalitions.
Government Spending and Taxation
The relationship between economic growth, taxation and government spending has been one of the most studied and important issues in the field of economics [5]. However, despite the fact that the distortion of government spending and taxation could affect a country’s level of GDP, the theoretical link amidst these factors and the growth rate needs to be well established [6].
Public policy choices have contributed to the economic struggle experienced by Ontario province over the last fifteen years. Research showed that the province’s economic competitiveness is being undermined by Ontario’s personal income tax (PIT) system which has hindered economic growth. The systems discourage a variety of productive activities making it difficult to retain and attract individuals who are higher-earning. Examining the status quo in Ontario, there is a possibility of transforming the province’s PIT system which is uncompetitive. In addition, reducing the Corporate Income Tax (CIT) would also be of great help in order to attract investors and entrepreneurs. Replacing the existing seven-bracket PIT system with a single-rate PIT would be a great policy reform which would lower the CIT to 8% from 11.5%. As a result, an important advantage for the province’s economy would be created which would render Ontario one of the most attractive tax jurisdiction North America has in regard to the taxation of both corporate and individual income. A favorable economic environment would be created where entrepreneurs, businesses, investors would be incentivized to invest, work as well as create opportunities.
References
Miletzki J, Broten N. Development as freedom. Macat Library; 2017 Jul 5.
Merkle RC. DAOs, democracy and governance. Cryonics Magazine, July-August. 2016;37:4.
Matthews F, Flinders M. Patterns of democracy: Coalition governance and majoritarian modification in the United Kingdom, 2010–2015. British Politics. 2017 May 1;12(2):157-82.
Peiqiong W, Cheng D. On the Tension between Democracy and Concentration of the National Governance from the Perspective of System Engineering. Journal of Engineering Studies. 2015;2:001.
Stiglitz JE, Rosengard JK. Economics of the public sector: Fourth international student edition. WW Norton & Company; 2015 Feb 25.
Harring N. Cooperation or Punishment. The Effects of Trust on Government Regulation and Taxation.
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