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Supply side policies (MARKET BASED (Created by a group of Austrian neo…

- - - - Better incentives
        
        reducing Income tax
        
        workers will increase their income per hour, thus working more
        
        Laffer found that decreasing taxes would actually boost government earnings
        
        reducing business taxes
        
        wil shift the supply to the left encouraging owners to employ more
        
        reducing capital gain taxes
        
        will increase investing
      - Higher competition
        
        achieved through
        
        deregulation
        
        decreas costs by decreasing goverment regulations
        
        normally obligatory safety equipment for negative externalities of production
        
        Anti-monopoly regulations
        
        seek to dismantle monopolies
        
        Was applied by opening up air travel
        
        privatization
        
        encourage lower costs, decreasing prices
        
        some examples are the coal industry, telecommunications and airlines
        
        free trade
        
        opposed tariffs, quotas and subsidies, which meant dependence to the government
      - Open labor markets
        
        reduce trade labor power
        
        they had to much power, overpricing wages
        
        reduce unemployment benefits
        
        as they reduce incentive to work
        
        ending minimum wage
        
        higher wages increase costs lowering supply and reducing employment either further
- - - - human capital
        
        They consist of half of the factors of production (labor and entrepreneurship)
        
        education
        
        high levels of education are positive correlated with high levels of national income , as workers are more skilled
        
        training
        
        this increases the efficiency of workers, thus enhancing economic growth
        
        health services
        
        a good prenatal care can improve the chances of healthy kids, which would then become labor-force
      - new technology
        
        new technology increases efficiency , and can shift the LRAS curve
      - infrastracture
        
        the building of large scale public buildings can increase the capital base of a countrie
      - industrial policies
        
        financial incentives
        
        subsidies, lower taxes, which reduce firms costs
        
        protections for infant industries
        
        reduce foreign competition for developing industries