Lowering+Tariffs+-+S.Bickers

__**LOWERING TARIFFS**__ **THE MICROECONOMIC REFORM: ** ** The Microeconomic aims to achieve the following: ** media type="custom" key="10159273" **A TARIFF is simply a tax placed on imports; ** =**Pres. Wilson reading message on tariff to Congress, 4/9/1913**= media type="custom" key="10159343"
 * ** The basic aim of the microeconomic reform is to expand Australia's productive capacity **
 * ** This will shift Australia's __Aggregate Supply__ to the right (increase) **
 * ** Therefore a greater volume of products can be produced **
 * ** Australia will have higher growth in __Aggregate Demand__ without causing DEMAND INFLATION **
 * **Boost Productivity**
 * **Increase Competition**
 * **Decrease Costs per unit**
 * **Decrease Cost Inflation**
 * **If Tariffs are lowered it will lower the cost of production**
 * **This is because importing goods involved in the production process from overseas countries will be cheaper for Australian producers**

//**The following video is a short animated clip describing the constant banter of whether or not to impose Tariffs:**// media type="youtube" key="0QVur0cRs7A" height="349" width="425"
 * **Lowering Tariffs will assist in the long term attainment of part of the government's economic goals. With lower inflation, greater employment and higher incomes delivered over the longer term, the material living standards of Australians will improve.**
 * **It will help boost productivity at the workplace level as manufacturing companies will have a lower cost of production, due to the lower tax on imported goods. Workers may be self-motivated to produce more efficiently as their wages could rise due to the low cost in production.**
 * **Lowering of Tariffs can increase competition due to the cost of production lowering, prices will be more competitive and therefore prices will become more competitive (lower), leaving average households with more discretionary income.**
 * **An increase in competition will cause companies to lower prices to stay in competition, hence inflation will decrease.**
 * **The boost in productivity will help to contain inflationary pressures as due to the decrease in the cost of production, cost inflation will decrease.**
 * **Workers will produce their goods and services more efficiently as they may be being payed more per item produced.**
 * **Lowering Tariffs although may seem like it has all the 'pro's' but there are 'con's' involved.**
 * **Due to the production process being much quicker and more efficient by workers being paid more, less care could be put into the production process, hence the goods or services produced can be of less quality.**