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237The following appeared as part of an article in a local Beauville newspaper.
"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."
The authors argues that the city should provide incentives in financial and tax for reducing unemployment and stimulate economic development. To strengthen his conclusion, the author cites that during 18 months, which is a short time as implied by the author, two companies located in Dilton and 300 employees were permitted to enter. While the reasoning seems convincing and the method to induce economy in this city is feasible, by further analysis, the author commits several logical fallacies.
Firstly, no evidence shows that the two companies established plants in Dilton for the reason of lowing tax rate. It might focus on the latent market in this city. Or they aim at developing the future workers there. Considering the trend that some big companies focus more on the development of talented students, the local schools are known for there ability to polish excellent students and then the two companies might have a plan to advance the students’ learning for a bright future blueprint of their companies.
Secondly, another reason why I disagree with the author’s conclusion is that a mere figure of 300 could not interprete anything. The author just takes it for granted that 300 employees make up much of the whole citizens and represent the educated and skillful level of the whole workers. Chances are high that 300 employees are the elite in this city entering through strict tests and it is entirely possible that the 300 people are small proportion of the gross population, which could not indicate that the rest of people would be hired along with the influx of other companies.
Thirdly, granted that by decreasing the tax rate and offering other attractive grants and favorable rates, and several other private companies relocate in this city, the author fails to convince us that the loss on tax rate and other unilateral benefical policies would be covered by the benefits the newcomers bring. Aside from the aforementioned latent negative sides, which might not solve the current conditions, the influx of companies could also bring some troubles there, such as the environmental pollution and shrinking residential quality and quantity. Some industries do hire a lot of people to let the unemployment fall, whereas the byproduct would harm the environment, which in turn finally is burdened by the government. In addition, with the increasing number of newcomers, the residential space would be narrowed down, which might trigger complaints about the noise and the polluted air and then give rise to the exodus of the productive force in this city.
In sum, the author’s conclusion is not compelling due to several potential drawbacks he ignores. To strengthen the conclusion, the author should conduct a demographic survey clarifying the population constitution and the educated level of the citizens. In addition, the author should make it clear what on earth attract these two companies and also make some regulations for the newcomers as to protect the environment.
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