A2 Economics: Supply Side policies and Economic growth in 11mins

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In this video I explain what is economic growth, supply side policies, the two types of SSPs (traditional and interventionist) and go through 8 of them and identify any problems we may have with them (reducing tax, reducing unemployment benefit, reducing trade union power, privatisation, deregulation, reducing national minimum wage and employment legislation, education and training, subsidies and tex credit and improving infrastructure). I finally go through the aggregate demand and supply model in relation to this.

Category:

Education

Tags:

• a2
• edexcel
• economics
• global
• supply side
• full employment
• trade union
• privatization
• deregulation
• efficiency

[navigatro]

Very good! Thank you.

[polvotierno]

Think about something... you say that the minimum wage should be lowered and that businesses will then be more productive..

then you say that subsidies can reward inefficient firms resulting in poor allocation of resources..

now think... if you lower the minimum wage too much... you end up rewarding inefficient firms leading to poorer productivity..

This was the original idea behind establishing a minimum wage... industry actually becomes more productive through socially efficient wages