Advantages and Disadvantages of Supply-side Policy

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Advantages and Disadvantages of Supply-side Policy
Advantages
- Advantages and Disadvantages of Supply-side Policy
Disadvantages
- Income inequality
Sustained economic growth (non-inflationary)
- Improves the standard of lliving
- Advantages
Improves the standard of lliving
Greater range of goods and services for consumers (deregulation of market)
Renewed entrepreneurial culture
- Measures to encourage small businessed
Measures to encourage small businessed
Trade union reforms=less strikes
- Higher productivity
  - UK=more competitive
Higher productivity
- UK=more competitive
More skilled workforce (due to education and training)
Reduces unemployment
- Structural and long-term frictional
Structural and long-term frictional
A commitment to free international trade
More competition in markets (due to toughening up of scarce competition policy and privatisation)
Less people on benefits and more taxes means increased government revenue.
Businesses may lose profit due to competition legislation
- Disadvantages
  - Income inequality
Takes a long time to see effects
- Deregulation-have to wait for new firms to enter the maket
Education and training-changes have to be made to the education system
- Takes a long time to see effects
  - Deregulation-have to wait for new firms to enter the maket
Costly to implement
- E.G education and training, subsiding childcare

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