Politicians play a fundamental role in the economics of any country. This is because they have the ability to influence their citizens’ lives in a more direct way than any other profession. However, not all politicians have the same objectives or views.
Some are driven by personal interests and corruption, while others are genuinely willing to make the world a better place for their people. This article will explain how politicians can influence the market price of certain goods, services, and resources in a positive way.
Taxes
Taxes are one of the most common ways in which government officials can influence the market price of goods and services. When taxes go up, the price of the product usually goes down and vice versa. There are many different types of taxes, and each one has a different impact.
A consumption tax, for example, is applied to the purchase price of a product. This means that the more people buy the product, the more revenue the government receives.
A value-added tax (VAT) is a consumption tax that is applied to the sale price of a product. The VAT is levied at each step along the supply chain. This means that the price of the product will increase as the amount of the tax is added.
Acts of Regulation
Government officials can also influence the market price by regulating a certain good or service. This can mean different things in different contexts. Sometimes, it means a reduction in the supply of a certain good or service, while in other cases it means an increase in the demand.
Public Works and Infrastructure
Governments can also influence the market price by funding public works and infrastructure projects. The construction of roads, railways, airports, and other transportation routes can increase the market price of certain products, like domehead fastener, which some companies can take advantage of.
The financing of public works and infrastructure can also result in an increase in the demand for certain products.
For example, the government can decide to improve healthcare and education facilities. This will make it easier for people to access these services, which will increase the demand. This can result in a higher price for certain products, such as building supplies.