The following appeared
in a memo from the mayor of Brindleburg to the city council.
"Two years ago, the town of Seaside Vista opened a new municipal golf course and resort hotel. Since then, the Seaside Vista
Tourism Board has reported a 20% increase in visitors. In addition, local banks reported a
steep rise in the number of new business loan applications they received this
year. The amount
of tax money collected by Seaside Vista
has also increased, allowing the town to announce plans to improve Seaside Vista's roads and bridges.
We recommend building a
similar golf course and resort hotel in Brindleburg.
We predict that this project
will generate additional tax revenue that the city can use to fund much-needed
public improvements."
Write a response in
which you discuss what questions would need to be answered in order to decide
whether the recommendation is likely to have the predicted result. Be sure to
explain how the answers to these questions would help to evaluate the recommendation.
The author claims that the establishment of gulf club and
resort in Seaside Vista has resulted in public improvements therefore they
should be also opened in Brindleburg to have public improvements, which is not
a reliable claim based on the following arguments. Comparison of two on the
basis no evident of similarity is not a good approach to claim to have the same
improvements.
Starting from the first, the author mentions that there is
an increase of 20% visitors which this is due to opening of golf course and
resort hotel. We do not exactly know, what was the actual volume of the inflow
of the tourists in figures? Mere percentage is not a good estimate of the how
much was increased in actually. Contrarily if he had mentioned the original
amount and we would have a good reason to claim it.
Secondly author mentions that there was a steep rise of the
loan applications in the local banks there. However he did not mentioned the
actual reason behind increase. It may be due to decreased interest rate as a
result people started to investment more. Moreover it may be as a result of any
subsidy provided to the citizens for a certain kind of investment due to which
people are applying for loans. On the other hand it has not been mentioned that
whether citizens in Brindleburg are business minded people or not.
Furthermore the author also claims that tax revenues have
been increased in Seaside Vista. It can be as a result of changing tax brackets
by the government, due to which total tax revenue has been increased. We do not
have reason to claim it that increased in tax revenues is due to which opening
of resort and gold club.
One of the important point which contradicts author’s claim
is that he has not mentioned any where any similarity between two towns, climates,
whether conditions, and geography. May be the climate in Brindleburg is too
cold or too hot, due to which visitors rarely visit it. It is neither mentioned
whether both of the town are located which is feasible for visitors.
Conclusively, on the basis of insufficient information we cannot
claim that building gold club and resorts will generate additional revenues to
use them as a fund for public improvements, the author is required to provide
more detailed information.
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