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PDF Editor FAQ

What political party would economists most agree with, libertarian or republican/democrat?

I’m not a libertarian, but I may be able to offer some insight here.What’s the difference?In this instance it’s actually correct to lump democrats and republicans in together, because both believe in intervening in the economy. Republicans tend to prefer corporate welfare programs (and would like an economist like Milton Friedman) and Democrats tend to prefer social welfare programs (and would like an economist like Paul Krugman). A libertarian would like an economist like Murray Rothbard, and will not believe in intervening in the economy.The role of an economistEconomists study the scarcity of goods as they relate to the consequence of certain modes of action. We cannot forget the obvious: economists are humans, and humans have ideological biases. They are also selling a product: their policy recommendations.A problem to be solvedWe may observe the economy as it is, and a politician would come to an economist with a “problem,” for instance, the politician may say:“The prices of rental units are too high.”Now, a democratic economist may tell the politician:“We could apply rent controls. We will only allow rent prices to increase in line with aggregate inflation, and any increase above that will be criminal.”A republican economist may tell the politician:“We will create a tax credit for landlords, which will increase their profit margins so they don’t need to raise rents further.”A libertarian economist would have an altogether different view, the libertarian economist would describe the situation to the politician:“If the prices of rental units are high, then there is profit to be made in owning rental units. If you do not obstruct individuals from observing the opportunity to profit, then more individuals will be incentivized to expand the supply of rental units, which will in turn decrease the rental price per unit.”(Note: this is, in essence, just a description of: Hayek, F.A., The Use of Knowledge in Society The American Economic Review (1945))The consequencesNow, if the politician chooses to follow the advice of the democratic economist, the price of rental units will only increase as much as aggregate inflation. Any increase higher than that will be punished in some way. The results will be a shortage of rental units, with the old saying, “There are two types of units: the ones you can’t afford, and the ones you can’t get.”If the politician follows the advice of the republican economist, the price of rental units may indeed go down, but it is likely that individuals will mostly be incentivized to only engage in the behavior that provides a tax credit. Maybe people would “technically” be landlords but would have no tenants. Maybe more hotels would be built. These are those “tax loopholes” folks focus so much on.If the politician follows the advice of the libertarian economist, and stays out of the way, it is true that prices will reach a near-equilibrium with other prices in the area but only if an entrepreneur expands the production of rental units to profit off of the relatively high rental prices.Political theatreThe politician will appear to have done nothing at all to “help” people, and when it is time for reelection, the politician’s opponent will say:In the face of increasing rental prices, you did nothing at all!I think this should act as an example describing the economics behind why there are so few libertarian economists. Economists tend to work in recommending policies to individuals in the public sector. Even if both the republican and democratic policy recommendations had negative effects, the economist can always say (because there is no way to prove or disprove the statement):Things would’ve been much worse if we had done nothing at all.

How can somebody who is staying in a rented house get an LPG connection?

A copy of rental lease agreement is sufficient to get LPG connection. Other documents for address proof (any one)Self deceleration of address attested by gazetted officer/NotaryBank/Credit card statementTelephone billLIC policyVoter ID or Ration card ( if you got)For ID proof Aadhar/Pancard/Driving license will do..

How do consulting firms charge clients for expenses?

Typically the statement of work includes the schedule of fees. This is the part of the agreement that specifies how the firm will be paid. There will be the terms and conditions for payment of the work as well as a clause that indicates that the client is responsible for “usual and normal” business expenses like airfare, hotel, car rental, meals, and miscellaneous expenses.Many companies, before signing the statement of work, will amend that clause to state what limits must apply on those expenses. If the client does not assert limits, then the range of allowable expenses can be quite wide.In most cases, the consultant is expected to follow a travel policy from the firm that sets limits on reimbursement such as a maximum rate for hotel rooms and a specific class of rental car.The consultant collects expenses and frequently reports them. The firm then sends a seperate invoice for travel expenses to the client.In most cases, for commercial clients, the expenses are reimbursed at cost.

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