Economics Incentivizing Thrift Article Example | Topics and Well Written Essays - 500 words

Economics Incentivizing Thrift - Article Example Employed individuals in small business should also be encouraged to save by implementing low cost savings retirement plans. The article highlights that the government has a role to play in the economy, according to the article the government taxation and policy measures should be changed in order to encourage savings, Wilcox states that the government should replace income tax with a consumption tax, this means that individuals will consume less and save more for future. The only problem with this proposition is that individuals may be taxed twice whereby they are taxed currently as they earn and after the taxation system is changed they will be taxed as they consume. The article also states that another solution to the problem of saving in the economy is education. One of the reasons why people save less is lack of knowledge regarding economic concepts. This should be undertaken by introduction of finance literacy into the school curriculum. From the above discussion of the article it is evident that the government has a role to play in encouraging saving in the economy, the government can replace income taxes with consumption taxes, introduction of financial literacy