Advantages and Disadvantages of Supply-side Policy

HideShow resource information
View mindmap
  • 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

          Comments

          No comments have yet been made

          Similar Economics resources:

          See all Economics resources »See all Macroeconomic indicators resources »