The Economy Of Santa Barbara Essay

1364 Words 6 Pages
resources available to the officials come from taxes collected from the people who earn income (Easton, 2016).
When members of the public earn X amount of incomes, they support economic growth by increasing their expenditure. In the last five years, the economy of Santa Barbara has been thriving, so the rate of unemployment has decreased. Better economic conditions mean that the people have more money to spend, so the government entities will collect more taxes. Higher incomes encourage people to spend as they are assured of meeting their needs (Finkler, 2013). As the case in the real estate sector in Santa Barbara, the people are willing to pay higher prices for property. Property buyers, on the other hand, are encouraged by the rising prices to construct new houses with the aim of reselling them to the public. Also, the current owners are willing to flip their houses to get newer house model. Thus, that will support the local business and keep the cash flow in the market.
The presence of high rates of unemployment is a serious problem to any economy. The majority of tax dollars is based on the income tax. Hence, if the tax collection get low due to the unemployment issue, the current or future projects could suffer debt. Some government projects are so critical forasmuch as they cannot be abandoned or delayed; such as, the provision of clean water, security, healthcare and education to the children (Easton, 2016). For the officials to provide such services,…

Related Documents