Economy means the total resources of a community or a country. A country’s economy encompasses the value of all goods and services manufactured within a nation. It’s one of the most essential factors in determining a nation’s superiority, wealth and stability. Most of the world’s population lives in developing or underdeveloped countries usually referred to as the third world. The IMF and World Bank have been playing a major role in improving the economies of most countries particularly those in Africa and South America. Some of these countries have been forced by the IMF to implement some reforms such as privatization, currency devaluation, and low corporate tax rates and among others. The following are several other ways that a country can improve its economy.
Reducing the cost of health care
A country can improve its economy by enabling its citizens to afford social security and Medicare. Most citizens in a country can’t afford to pay for these any more. The country can stop incentivizing the doctors to use costly drugs. Most doctors are paid according to the drug percentage they use. So if the doctors are paid by injection instead of cost of the drugs, the Medicare spending will reduce.
Introducing tax rebates and tax cuts
Tax rebates and tax cuts are considered as a way of taking more money back to the consumers. If possible, the consumers can spend some of the money in various businesses, which increases revenue, profit and cash flows. With more money, a business will be able to have the resources to improve both capital and technological growth. An increase in tax revenues improves the economic situation of the government and reduces the need for borrowing. However, reduction in borrowing reduces interest rate which in turn brings an increase in loans to the private sectors. This will also bring a positive effect on the economy.
A country can also develop its economy by increasing its savings. This improves the quantum of available capital for investment thus leading to an economic growth in a country. Introducing immigration reforms can also help in improving a countries economy. If a country denies skilled immigrants it will delay economic recovery and harm international leadership in entrepreneurship and innovation.
A country can also improve its economical growth by eliminating unnecessary and unclear laws. Prosecutors in the government have induced legal actions against great companies. These particular laws waste a lot of government resources and demoralize the company’s competition in the country.