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Sajjad1994 Can you please evaluate my essay. Thanks.
The editor of newspaper points out that even though manufacturing industry contributes to 40% of the total taxes collected by the govenrment, only 10% of the government subsidies go to the manufacturing industry in forms of lower cost of raw material, fuel etc. The editor potrays the significance of manufacturing industry by pointing out two facts:
1) The manufacturing industry in second only to agriculture in generating employement
2) Manufacturing industry is probably the main force that is establishing nation as global economic power.
Pointing out to the above facts, editor calls the subsidy structure as unfair and demands more subsidies for manufacturing industry. However, the editor's argument is flawed because of three main problems and demands of editor do not hold water unless more information is provided and a few assumptions are corrected.
Firstly, even though the percentage of subsidies provided by government to manufacturing sector is 10% of total subsidies, the editor fails to explain the need for more subsidies. There is a possibility that the total amount of subsidies is so huge that even 10% of total subsidies is more than enough for the manufacturing sector to fulfill it's needs. Maybe, the governement has provided other incentives such as import quotas and other manufacturing schemes that are more benefecial than subsidies and hence remove the need for any further subsidies to manufacturing sector.
Secondly, editor establishes the fact that manufacturing industry is main force behind nation's global economic power without providing any evidence to support this conclusion. It seems suspicious that manufacturing sector is so financially dominant in the nation even though more workforce is employed in agriculture. Also, no figures for contribution of service sector are provided to prove that manufacturing sector is more economically powerful than service sector.
Thirdly, even if we consider that less subsidies are given to manufacturing sector, increasing those subsidies would result in a decrease in subsidies from other areas of the economy. Hence, solving one problem would lead to creation of other problems. The editor does not provide any solution to tackle the shortage of funds that may arise in areas as important as health and education because of giving extra subsidies to manufacturing sector.
Hence, the editor should have taken a more holistic approach of the problem and economy,in general, to lead to the conclusion that subsidy structure is unfair and more subsidies should be given manufacturing industry. The editor should have given more information regarding the econcomic contribution of manufacturing sector in the total GDP of the nation and compare that with economic contributions of agricultural and service sector. Furthermore, the editor should have considered whether there is even a need for additional subsidies to manufacturing industry? Until and unless, the aforementioned information is provided, the line of reasoning remains to be flawed and the conclusion remains uncertain.