Coursework: Answer The Question About Economic Development

Name
Institutional Affiliation
Economic Development
Introduction
It is essential for a government to come up with proper policies that will ensure that there is a sustainable economic growth through the eradication of poverty and adequate income distribution in the nation (Powell). The Republic of Goata government is required to intervene through an increase in minimum wage, enhance income tax and invest in education. Government intervention is aimed at providing a steady social and economic growth.
Increase of minimum wage
The policy aims at ensuring that low-income earners have an increased amount of compensation from private or public employers (Fuentes-Nieva & Galasso).
Advantages
* The income makes it possible for individuals to handle the needs of the family.
* Enhancement of minimum wage increases the motivation of employees in an organization and economic growth.
Disadvantages
* Organizations will reduce the number of employees to save on the cost of production, leading to an increased unemployment rate in the country.
Enhance income tax
The Republic of Goata government should develop a fiscal policy that aims at ...