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MOD 3 SLP BUS 305 - Trident University International BUS...

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Trident University International BUS 305 Module 3 Session Long Project Monetary and Fiscal Policy Government interference in private business operations has been a controversial topic for many years because it brings to question whether the current economy allows for a truly free market. In order explore the various ways in which the government interferes with business operations, several factors will be discussed including household tax cuts, government trade policy, and the imposition of tariffs. Each of these forms of government interference has shown to have large effect on private business operations. Household Tax Cuts Microsoft Inc. depends on consumer spending for profitability each quarter. Therefore, the company is susceptible to trends caused by the recession such as lack consumer confidence. While some companies are not as susceptible to these types of market changes, Microsoft Inc. would be greatly affected if the government were to impose household tax cuts on 95% of all households. These tax cuts contribute to greater consumer wealth, which in-turn leads the consumer to spend more money than they would if they hadn’t been allowed a tax cut. When consumer confidence rises, Microsoft Inc. and other companies experience increased sales as consumers are more likely to indulge in products or services they wouldn’t have previously. Tax
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