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TOEFL IBT Writing Answering Practice #10

Sample Text 2:

Supply side economics is an economic theory which states that the best way to run an economy is by lowering taxes and cutting regulations, thereby removing barriers to business and stimulating growth by putting more money into the hands of both businesses and consumers.

While the theory has its detractors, they cannot deny the benefits of this approach. During the 1980s, both Great Britain and the United States pursued this approach with great success. The economies of both countries grew exponentially during this period, and unemployment fell to near record levels.

In the United States, taxes were cut from a high of 50% in the early eighties to nearly 30% in the late eighties, something which caused the GDP of the country to shoot up, and also created the conditions for the economic boom in the nineties. In the UK, too, the cut in taxes stimulated the British economy a great deal. Indeed, in the seventies, the British economy was known as the ‘sick man of Europe’, due to anaemic growth rates and high unemployment.

Many at the time theorised that the United Kingdom was in permanent and possibly terminal decline. With the reduction in taxes, the removal of burdensome regulations on businesses and the corresponding growth caused by these actions, it is fair to say that the country recovered its erstwhile reputation as a good place to do business.

Question: Summarise the main points in the lecture. Be sure to talk about how they cast doubt on the points raised in the text.

The main idea of the text is lowering tax could be an incentives for businesses to grow faster. On businesses side, maybe pure capitalism, lowering or cut the tax can give several advantage for the country.

By cutting the tax, businesses will sell their products or services in lower price, then consumers also can afford wide range of products and services than before. Hence, the economics will be run and growth faster, proven that GDP of US was rise up highly when the tax was cut up to 30%.

Furthermore, the unemployment rate will be down dramatically. The result, should be, people become happier than before, so government jobs should be easier.

Lowering tax also stimulate local investors to pouring more their money, then the country become the good place to do business.

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