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Uses of SS policies - Coggle Diagram
Uses of SS policies
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Reduce Govt Expenditure, Increase Resources to Private Sector
Bring about profit motivated owners, more incentive to cut costs
Limitation: Trade off on drop in expenditure on infrastructure, potential growth affected
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Reduce Welfare Benefits
Difference btwn welfare benefits of unemployed and pay for employed (becomes voluntary unemployment)
Could apply other way instead, like topups to older workers
Promote Factor Mobility
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Limitation: Inability of workers to work, or make a mid-career switch, factor mobility may slow
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