Living Economics

Taxes and Commercials, Necessary Evils?
Anna Glover
Taxes and TV commercial take away what we could have otherwise, but are necessary to support 'free services'.

TV guide listings tell us that shows last, for example, from 7:00 p.m. to 7:30p.m. However, no sitcom actually lasts 30 minutes because of frequent commercial interruptions. Actually, most sitcoms last between 20 and 22 minutes.

The 30 minute time slot is similar to personal income. They both show us what we could have.

Personal taxes are similar to commercials shown during T.V. Commercials last only 30 seconds to a minute each, but all of those seconds add up. Similarly, taxes are usually taken out at every paycheck and during most purchases. But they add up when you take into account all local, state, and Federal taxes.

Commercials are needed to generate income for programmers to pay for actors, directors, and crew members of shows and movies. Without commercials, viewers would have to directly pay for what they want to watch.

Similarly, taxes are needed to provide useful public services. Local, state, and Federal government employees such as the armed forces, park rangers, policemen, and firefighters must be paid for. Taxes also fund Social Security, Welfare, public schools and such.

Taxes and commercials are necessary evils. Just like economists are fond of saying, there are no free lunches.

Note:
  1. Anna Glover is an undergraduate at the University of Memphis.
  2. Anna Glover is an undergraduate at the University of Memphis.
Access Tools
• Advanced Search
• Browse Micro
Comparative advantage (14) Competitive strategy (27) Costs and opportunities (53) Entrepreneurship (3) Externality (28) Free Market Solutions (17) Free Ridership (3) Game Theory (22) Incentives (13) Income Distribution (25) Information (19) Labor Market (24) Marginal optimization (33) Market Demand (17) Market Entry (9) Market Exit (2) Market Intervention (12) Market Structure (29) Market supply (4) Material Flow (2) Miscellaneous (3) Price Discrimination (17) Pricing Strategy (46) Profit maximization (48) Property Rights (42) Regulation (16) Rent Seeking (2) Risk Taking (12) Scarcity (10) Tastes & Preferences (27) Taxes (7) Technology (9) Type of goods (31) What Price Means (27)
• Browse Macro
Boom and Bust (9) Budget Balance (12) Comparative advantage (13) Economic Development (1) Economic Indicators (6) Fiscal Policy (12) Incentives (1) Income and output (25) Income Distribution (5) Labor Market (6) Money and Credit (20) Regulation (5) Rent Seeking (1) Saving (6) Taxes (4) Technology (1) Trade and Foreign Exchange (30)
• Glossary
List All
Search

• Microeconomics Lectures • Macroeconomics Lectures
Instructor
• Instructor Log in • Sample TOC • Demo/Register • Video Tour
Student
• Student Log in
Close
Instructor Log in

Class
Close
Student Log in


Open Menu
Term
Definition