Supply Side Policies

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  • Created by: FunkyFrog
  • Created on: 08-04-14 15:55
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  • Supply Side Policies
    • Labour Market Measures:
      • Increase spending on education and training
        • Reduce power of trade unions
          • Introduce performance-related pay
            • Increase flexibility of pension arrangement
    • Tax Reform:
      • Reducing burden of income tax
      • Reduce direct. Increase indirect taxation
    • Reform of Welfare State:
      • Reducing welfare benefits
        • Reduce unemployment trap
    • Industrial and Competition Policy:
      • Privatisation
        • Privatised enterprises have more incentive to be efficient and competitive (supply side economist argument)
          • Exposure to 'discipline' of the market AS curve shifts rightward
      • Deregulation:
        • Removal of BOEntry + contracting = more competitive
    • Commitment to free international trade
      • Trade b/w nations = competition
        • Lower cots and prices for consumers
    • Improvement in entrepreneurship + capital spending
      • Promote entrepreneurship with more start-ups
        • Loan guarantee for new businesses
        • Regional policy assistance for entrepreneurs in depressed areas
        • Advice for noob firms
      • Tax relief on R & D
      • Reduce corp tax

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