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SUPPLY-SIDE POLICIES - Coggle Diagram

- - - - Possible decrease in worker safety, health, work conditions and more negative effects on the community and enviroment
  - - - If privatization is conducted incorrectly it may lead to the creation of monopolies, increased prices, decrease of supply and decrease of efficiency (see the tragedy of British Rail)
  - - - possible reduction in living standards for low-income or unionized workers leading to increased income inequality
  - - - Reduction of household income tax may benefit higher income households (high wages earners) more than lower income households (low wages earners), thus causing an increase in income inequality
      - Increase in disposable income can lead to households choosing to work less than they used to
- - - - education and training
        
        increased levels of human capital of an economy
      - the quantity and quality of health care as well as improving accessibility
    - - tax credit- ex. tax relief on profits used for R&D
      - guaranteeing intellectual property- patents and copyrights guaranteed by the government used to convince firms to invest in research
      - financing R&D in public research falsities/universities
    - - policies that support and encourage the development of industry
        
        anti-monopoly laws
        
        helping small & medium companies
        
        supporting export companies
        
        helping education meet the needs of business
        
        supporting certain industries through financial subsidies
  - - - policies depend on ideological aims of the government
      - it is hard to choose what should be funded
      - time lags
      - monetary cost
        
        opportunity cost
        
        excessive borrowing