supply side policies

Question 1

Improving flexibility

Answer 1

• reduces labour costs - lowers min wage, reduces benefits, weakens trade unions, exploits workers- unfair to unskilled workers

Question 2

Invest in education and improve quality of future labour

Answer 2

, it’s hard to decide how they should invest in education- unis? Secondary? Teachers? Technology? Improve teaching quality? Takes too much time

Question 3

Invest in countries infrastructure

Answer 3

• roads (building new roads, expanding roads…)- helping business reduce costs- quicker transportation- costs of driving and petrol- but pollution, raises environmental issues, slow process, but can employ more people

Question 4

Subsides

Answer 4

• if it’s not a good enough idea for banks to give the company money, why should the government, filtering methods