UK Use Of Policies Flashcards
Examples of interventionists supply side UK policies
Spending on -education/training, healthcare and infrastructure + subsidies/taxes/grants to encourage investment
Examples of tax reform market based supply-side policies
Reduction in income tax, reduction in corporation tax
Example of labour market reform market based supply side policies
Reduced benefits, relaxed immigration controls, reduced minimum wages, reduced strength of trade unions
Example of competition policy market based supply-side policies
Privatisation, de-regulation, trade liberalisation, anti-monopoly legislation
Supply side policies that can be used to reduce economic inactivity
Interventionist policies + tax reform market based SSP policies
Supply-side policies that can be used to reduce the natural rate of unemployment
Spending on education/training, spending on infrastructure, reduction in income tax, reduction in benefits, reduction in trade union strength, de-regulation
Supply side policies that can be used to boost regional growth
Interventionist policies, reduction in corporation tax and de-regulation
Supply-side policies that can be used to boost productivity/competitiveness
All policies other than a reduction in benefits or income tax
Current UK use of fiscal policy?
Contractionary
How do the UK use income taxes as a contractionary fiscal tool?
Bound income tax bands until 2029 - rising wages creates fiscal drag
What other taxes do the UK government use currently as a contractionary fiscal policy tool?
Corporation tax
Where have the UK government currently cut spending as a fiscal policy tool?
Current and capital areas
Intentions of UK contractionary fiscal policy
Increase confidence in government finances, fiscal policy flexibility, reduce inflation
Evaluation of Uk government current use of contractionary fiscal policy
Conflicting objectives, Laffer curve disincentives, rising inequality (0.343 to 0.357)
