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ECONOMIC GROWTH - Coggle Diagram

- - - - HIGHLY EFFECTIVE as it alleviated impacts of lower consumer/investor confidence. The economy grew at 1.4% unlike other OECD economies, e.g. America who experienced a recession - two consecutive quarters of negative growth
      - MILDLY INEFFECTIVE as high-income earners, with a relatively higher MPS, saved this cash therefore there was potential for greater economic growth
  - - - unemployment would've otherwise reached 10% without policy (Treasury) therefore this policy had HIGHLY EFFECTIVE control of cyclical unemployment (economy above NAIRU aiming to reach full employment)
      - lower than the 10% unemployment reached in the US
- - - - however regressive tax = increased tax burden on low-income earners --> worsening of income inequality --> low-income earners will be more susceptible to poverty and welfare dependency which could easily become intergenerational
      - by broadening tax base and placing more emphasis on indirect tax, govt. could decrease marginal income tax and increase tax thresholds = reduced tax burden on income earners
- - - - therefore policy was SOMEWHAT EFFECTIVE