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"According to a government report, last year the city of Dillton reduced its corporate tax rate by 15 percent; at the same time, it began offering relocation grants and favorable rates on city utilities to any company that would relocate to Dillton. Within 18 months, two manufacturing companies moved to Dillton, where they employ a total of 300 people. Therefore, the fastest way for Beauville to stimulate economic development and hence reduce unemployment is to provide tax incentives and other financial inducements that encourage private companies to relocate here."
In this article,the author suggests of providing tax incentives and
other financial inducements to encourage private companies to
relocate in Beauvile .And he cites the successful experience of
Dillton to support his viewpoint.However,this article contains
several critical logical flaws that make it unconvincing.
First of all ,the author doesn't provide any relationship between
relocation of two companies and steps taken in Dillton.The companies
may relocate there not due to a lower tax, relocation grants ,etc, but
due to other advantages of Dillton.It is entirely possible that
Dillton locates near the bank of a river or an important railway
station. Thus manufactures can be transported to other places easily
and fast with cheaper fees. It is also possible that the level of wage
in Dillton are lower, companies can get more profits without
increasing price of their products .More experienced engineers and
workers are likely to be in Dillton as well.Engineers can have new
ideas and design new products with new technology and cheaper
materials which may be popular among consumers .Meanwhile,workers can
transform the new design into realization in a short period. So
companies can get a larger market and high popularity among
consumers, also more income.Without ruling out these possibilities, the
author cannot convince me on his suggestion.
Moreover,even if the steps Dillton took contribute to its success ,the
author falsely makes the conclusion that Beauvile,if take the same
measures, will get the same results.This not always the case,for the
author overlooks the possible difference between two cities .Dillton
may be developing ,and it chooses industry as the main way.So it
tries its best to attract more companies. While Beavile is already
developed and residents there just want to lead a peaceful life not
caring much about their incomes.Or perhaps Beavile lay much emphasis
on education or commerce. They don't want industry to destroy its
environment and consume its natural resources. Neglecting these
possible backgrounds,the author's viewpoint is not credible.
Further, the author forget considering other measures which may
stimulate economic development and reduce unemployment in
Beauvile. Traveling industry may be one.Beauville can make the city
cleaner and more beautiful, increase traveling sites,and improve
quality of hotels and restaurant .More travelers may come , so
traveling industry will increase employment(people are employed to
serve) and stimulate economy. Unlike manufacturing industry, it
doesn't require much resource and makes little pollution,which means
it may bring profits for a longer period.Thus the author shouldn't
insist on his viewpoint if he hasn't considered other possible ways.
In final analysis, this argument is logically flawed in several
respects that make it untenable .To bolster his suggestion, the author
should find out reasons hidden behind Dillton's success and provide
facts that these reasons also suits Beauville.He should consider
other possible ways to stimulate economy as well.
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