I will evaluate two different policies from both - demand and supply side. One of them is lowering or eliminating taxes. The second one is the training program provided by the government.
1. Tax cuts.
demand side
If the government wouldn't take the tax from certain groups of people, it might help the economy. Their income would obviously increase, their confidence too. Their ability to buy rises as well, and combined, these factors have to increase aggregate demand. If the aggregate demand goes up, the aggregate supply goes up too.
supply side
If the employers get benefits when hiring new people, it is most likely that they would eventually hire more people only because of this tax cut. It is efficient because they would be able to produce more output with less money than they would pay without the tax cut
2. training programme
demand side
Unemployed people can sometimes fall behind since they were not working, and are not familiar with newest technology anymore. This training would help them catch up, and if it was for free provided by the gov't, or at least subsidized by the gov't, people could afford it and with some kind of certificate find a job easier.
supply-side
Businesses are more willing to hire workers who are skilled than people who have no experience. If the training programme consisted of real life experience in any random company for at least some amount of time, the comapny would know that this person has some skills, and therefore hire the person more likely. If there is unsatisfied demand for workers because they are not skilled enough, the gov't could provide this special kind of training and then the demand will be satisfied with skilled workers.
Žiadne komentáre:
Zverejnenie komentára