Supply-Side Economics and Policies | Livestream | Aiming for A-A* Economics 2024

Join Geoff live for this fast-paced revision session on Supply-Side Economics and Policies

#aleveleconomics #tutor2ueconomics #alevels2024

VIDEO CHAPTERS
00:00 Introduction
04:02 Warmup – Big Reveal
06:16 Bubble Quiz
10:46 MCQs
13:19 Factors that affect LRAS
16:21 Key Data for UK on Supply-Side
23:07 Examples of free-market SSPs
28:01 Examples of interventionist SSPs
31:20 Exam gold on SSPs
32:09 SSPs to increase rate of new house building
35:20 SSPs to reduce economic inactivity

Hot topics for Paper 1 (2024)

Don’t forget to catch this must-watch 8-minute video from Geoff on Paper 1 Hot Topics for 2024: packed with essential application. https://youtu.be/1uqrmQyeQ3A

wasted money on cures forgot how to fix myself they say that time is free then why is it’s so precious oh I’ll save memories in my head like pooid on W they remind you to look ahead is running [Music] L [Music] run lately I’ve lost my track lost my track I’ve saved the deeper se de hoping I find something something to bring back better times oh I’ll save memories and night head like Polaroids on road they you to look ahead the time is running out running out time is running out is running out time is running out time is running out time is running out time is running time is [Music] running time is [Music] running [Music] what if my best days are over it can’t be [Music] over they can’t be [Music] over time is running out what if my best days are over they keep me over W the time is [Music] running good morning everybody Welcome to our the 10th in our series of daily revision sessions we’re going all the way through to the exams we ain’t finishing yet uh so the the revision sessions will continue we like the 11:30 slot lots of people can join us uh and if you’re watching live uh first of all press like because we beat business studies yesterday quite easily actually truth be told and also least be subscribed to the channel to contribute to the chat window we have an amazing group of students so motivated so knowledgeable and they often help with questions so that might be a question we’re doing suppli and economics to and polies so uh keep an eye on the chat there there’s some incredible answers come through uh and we try and to Showcase some of them with our production team on the screen so I am fresh from a massive win for harri Town last night we beat gimby Town haven’t yet seen the Champions League highlights so please don’t tell me the scores uh welcome everybody if you’re watching on um catchup just press that pause button whenever you want to take a moment to think about a question or grab some some context from the presentation and this presentation will be available for download just a few minutes after we finish now a little change to the start today let’s look at something called the big reveal so I’ve chosen a country with a pretty good supply side there’s a clue and uh so I’m going to give you five Clues and you only allowed one go each by the way let’s let’s put a little little wider into the chat window so which economy is this it’s ranked by the way some people already started answering before the first clue it’s quite impressive it’s ranked fifth in the latest World competitiveness ranking we’ll showcase the first correct answer that comes through Kieran says Germany Kieran you’re out it’s home to the largest sea port in the European Union so that um I’m not great at geography but uh that rules out South Korea and Indonesia and Brazil the third clue has a GDP Capital well in excessive the UK we’re at $48,000 they have 73,000 and uh it’s the 15th highest in the world do we have the right answer fourth clue coming up on the screen here yep so we may have it’s the sixth biggest export of goods in the world including oil and pharmaceuticals and the fifth clue is a football one the Sports One the top socer club was created in 193 just a year before the Great War for workers of the local electronics Factory can somebody give me the name of the Club it is the Netherlands well done everybody and I think uh Jim pointed out the first person to to get it right on the screen what is the name of the club Kirsty congratulations to you on that and the a is and the club is not ax what is the name of the club you’ll remember it once we tell you it it’s not far in order everybody feverously searching on Google for this uh oh can we it’s PSV Phillips the electronics company PSV einthoven of course the Netherlands really good example of country who suppli are is is pretty good let’s move on to the bubble quiz so I’ve got three three bubble quiz questions for you all to do with supply side economics so the number of answers that are correct can range from nothing or zero to all four so here’s the first question uh this is quite challenging which of these countries are in the top 10 in the world for research and development spending R&D measured as a percentage of their GDP now how many of these are correct so in the chat window post please the um how many answers you think are right so if you think it’s all four just put a b c d if you think it’s just b or B and C post it in the chat window uh so Teddy our head of school says BCD Victor says ABC Anna says b and d f me Harrison says BCD these look like my forecast GR a level BCD Cameron goes for b and d and Jennifer says ACD a lot of you are CH choosing D here’s the right answer coming up answer is a b and c Belgium South Korea and Sweden South Korea is actually second Sweden third China is not in the top 10 in the world for R&D as a share of GDP of course they typically manufacture things they AR that’s to get to high income States they’ll have to boost their R&D substantially but they’re not yet not there yet next question coming up which of these countries is ranked in the world’s top 10 Nations for High-Tech exports so it depends what you includ they have a a measure of exports have to have a high degree of technological components in them so yeah instinctive H says was never going to be D because their GDP is really high well they’ve got a high GDP so even a small percentage of GDP implies a lot of R&D doesn’t it me so to Sparkle one of our great contributors it’s coming with BCD Matt Hardy C and D which of these countries are in the top 10 in the world for High-Tech exports uh some lovely to see some new people today George has gone for CN D Felix be Felix Mir BCD and Jack ABC let’s check let’s see what comes up ab D harer congratulations you got that right absolutely brilliant answer well done Japan is not not in the top 10 for Hightech exports in fact what’s happened with Japan a lot of um a lot of high-tech production has left Japan lot of Japanese multinational companies have decided to um partly because of deflation in Japan and two decades of slow growth um Jacob and George have come in with AB andd ahead of the answer maybe still a good answer though yes a lot of Japanese high-tech exporting has actually been outsourced to Southeast Asia to America now third question is the hard one which of these universities were ranked in the top 10 globally in 2022 now this might relate it might relate to something we talked about yesterday so what do we think here which of these UK universities were ranked in the top 10 globally in 2023 London School of Economics LC Imperial College London the University of Edinburgh and Cambridge University what do we think so Greg has gone for Cambridge and Imperial uh what do we think Millie says where’s Nottingham Trent well it’s in Nottingham Millie uh s has gone for a and d George says b and d plus Oxford I think so George gone for B and D plus Oxford uh Ellis stack Bandit one of our great contributors Ellis is even top 50 by Qs somehow interesting point from uh snack band what else have we got here uh somebody said Sam says tried to sneak tried to sneak into Edinburgh not always easy okay here’s the answers coming up the answers are Jack says Jeff wouldn’t turn an opportunity to get Cambridge in well it is indeed b and d uh yeah Alan says which university did you go to Jeff um I went to Cambridge Al if you’re asking back in the day and actually here’s a picture of my college CLA College by the way I just want to make make a point I I had a great time at Uni um I met loads of people and both the friends I made at University I’ve kept in touch with pigeon says where’s Oxford well it’s obviously at Oxford uh but I’m not going to put Oxford on any screen on any of my presentations it’s the second rate University by any measure okay three past past question multiple choice questions past exams these are all from 2022 or 2023 so test yourselves on these which supply side measure is most likely to produce shortterm growth in a country’s aggregate supply I like this question now three questions here can you get all three right test yourself oh sorry George saying Jeff you’re rubbing in the fact that cambri denied me I George I apologize but I’m sure you’ll have a great time there as a master student Jacob says a ria says a Dan the man says a Daniela and Kate and Eldridge all saying a George and Via and Sam I think let’s double check it is indeed a yes so migration is one of those shortterm supplies policies a lot of students in the exam by the way say supply side policies have long time lags not necessarily migration is a can have a pretty immediate effect come on to that in a second next question which combination identifies a main aim of a supply side policy and a measure used to achieve this Target and these these next two questions all three of them are um past questions from 2022 2023 including cie uh and um other examples so this is a great question Angus and Alice uh Kate and CLM have all got the right answer let’s double check well done to you he yeah growth driven by deregulation if you’re believe in threee markets that’s the answer good stuff well done um and final question which combination of macro policies will be most likely successful if the aim were to reduce unemployment and reduce inflation other words would shift the Philips curve down to the left which combinational policies would be like be most successful if the aim were to reduce an employment and reduce inflation achiever an improvement in the macro objectives both of them again this was a 2023 question and some good questions being asked at the moment in terms of testing people’s knowledge now we’re getting a difference of opinion here you want to reduce unemployment and cut inflation uh adod and Reese Lucas and Angus Freddy and Sam and vidika all have the right answer I think so well done to you here here it is yeah suppli High policies to to um improve labor mobility and reduce indirect taxes help to bring down inflation excellent stuff really good uh if you chose D there of course because that would cause inflation if you depreciate the exender inflation goes up okay over to you team economics here we go that’s crack on some supply side can you just give me three facts pleas that affect long run aggregate supply over to you they’re thinking about long Agate Supply the Loos curve kin curve or the neoc classical curve what are two three really important factors that drive aggregate supply and again the more detailed the better and we’ll showcase some of the best answers on the screen yep all good stuff not easy in a minute by the way so don’t worry about writing long sentences we’re just trying to capture the essence Ellie has a lovely point there human capital comes into her answer I’ll have something to say about education and the second Matt I think there’s a a nice way of uh improving just making the answer slightly more detailed G9 one of our great contributors labor productivity avative resources and how advanced technology is don’t know the word for that well I would call it Cutting Edge technology or technology at The Cutting Edge by the way I’ve just bought myself a new garden strammer and it’s the absolute latest Garden stre is it is cutting hedge technology no question about it so if he talks about investments in D improved education now I want to talk about education in a second here we’ve got to be very specific here and investment in infrastructure now crucially uh can I just hold on Sophie’s answer there R&D billiant education fine infrastructure fine the real key when you get a question on supply side is to go one level below and give me give me an example so what type of education what type of infrastructure R&D in which Industries so Sophie’s got three really good points there to make it great points you then give some detail so if I look at my answers here coming through uh well I haven’t chosen to productivity of Labor and capital Factor efficiency obviously you need to Output per you need a growing population and increased labor market participation we talk about that today Innovation and Enterprise you need small you know entrepreneurship you need product and process Innovation you need a high level of net capital investment which is grow investment minus depreciation and increasingly of course sustainable uh growth longer Agate Supply can you find exploit extract and protect your stock of natural Capital so productivity labor Supply Innovation and Enterprise the Capital stock and natural resources okay all good stuff we’re going to look at a couple of I’ve chosen a couple of topical areas if it’s okay with you just for two minutes can I work through some of the key data on the UK so supply side uh questions hugely popular in the exam if you have a little bit of knowledge and this slide gives you it then you can get a long way in the exam you can impress the heck out of an examiner so the world economic Forum publishes competitiveness rankings uh it’s peer reviewed it’s not it’s based on a range of indicators we were 23rd in 2022 we dropped to 29th last year 29th on the competitiv this rankings mainly because of the high inflation and the rising fiscal deficits there’s something called Pisa this is the sort of Education test schools standardized test for education in maths and languages and science we came 14 2022 which is okay it was one place higher than the year before Singapore and Taiwan are are top uh Freddy says no way is the UK fourth of productivity well we are the fourth in G7 for productivity there’s OB only seven countries many other countries have higher productivity I’ll give you some data on that in a second Freddy Germany and United States ahead we have a very low investment share a share of GDP again I’ve got a chart for that in a second it’s only 177% of GDP below the average our r&d’s gone up it’s now just below 3% of GDP p in part because of change the way that we measure R&D we now include more intangible R&D I’ll take you through some charts in a second people are asking what does this mean we’ll look at some examples R&D is B research and development so in pharmaceutical be researching new drugs new new treatments we run a current account deficit of just over 3% of GDP 90 billion pounds now that is what I call reveal preference you know the the trade data tells you whether you’re competitive or not really importantly uh 9 22% of the work population working age is economically inactive that’s 9.25 million people of working age are not active in the labor market and we built 233 houses last year I think well that’s micro that’s not that’s macro because it’s the whole UK it’s 100,000 below our Target and we are going to look at seven and eight in a few minutes when we think about policies supply side policies so the UK does well on certain things r&d’s got much better our relative productivity is not miles off let me just take you through a bit of bit of data here so if it’s okay with you I just want to spend three or four minutes just giving you some background on supply side performance of the UK this is kind of really good stuff for 25 markers you obviously have to use the data in the extracts but if you have a little extra knowledge it makes a difference so here’s our latest rankings from the WF uh with 29th overall um better on infrastructure uh pretty good on things like um financial services but not not great we’re not in the top 20 in the world now used to be the next slide shows the productivity slowdown somebody said well what’s happened to productivity what of course what’s happened is that the productivity growth has slowed right down particularly since 2008 now this chart shows GDP per hour with 2008 as 100 that’s your base level and it’s taken from a new publication by John Van rean published by the LSC and it does show that had productivity continue to grow at the the rate uh the pre-crisis trend would it now be 24% higher than we are now so productivity that’s a great line for the exams by the way had productivity grown at the same rate before the financial crisis GDP per hour and essentially GDP per head will be about A fifth or a quarter higher okay so load productivity slow down in part the next slide shows why sorry it shows more evidence this is relative productivity this is output per workare relative to the UK so keep in mind this is the kind of data you often get in exams this data shows whatever UK productivity is the other uh countries are percentage different so Japan’s B basically the same as the UK Canada a bit a bit ahead of us France and United States much well ahead this is output per worker okay and linked to it is investment and this chart I think is super important so this chart shows the share of investment in GDP both public and private and you can see the red line the UK the orange line and for many many years we have been at or below the bottom of the G7 average somewhere between 17 15 and 20% of GDP now 177% which is well below other industrialized countries and critically well below the likes of South Korea India uh obviously China China is above 40% so out Decades of underinvestment is a chronic a chronic um supply side issue and then link to that the next slide shows inactivity I’m going to focus on that in a second I’m G ask you some questions on this but uh a decade’s worth of progress in reducing inactivity from 24% down to about 20% has been reversed in the last three or four years some of it linked to the pandemic not all of it though now keep that in mind by the way we’ve got nine nearly nine and a half million people of working age in this country who are not active in the labor market just over 21% and the next slide is house building I think yeah so the forecast the government has a target of 300,000 homes every year that’s just for England add in Scotland and Wales obviously in Norther Island you get to 340 okay but uh persistently year on year although there’s ups and downs house building lies below um forecast this is net additions to the housing stock so the evidence is we need to build at least a net 300,000 every year because obviously some houses get demolished and some get unusable so we need to be building probably 350,000 to add 300,000 to the housing stock so we’re going to talk about that in a second okay so I just thought I’d spend a few minutes if it was okay with you just talking you through some of the supply side data for the UK the other ones I just wanted to show was work visas this is unbelievably interesting so obviously the government we left the European Union in the end of 2020 so we we ended free movement and we’ve we’ve replaced it with a skilled work visa system uh and also a a shortage occupation system and there all kinds of different gradients now you need to earn certain amount of money the government just said you can’t if you’re a skilled care worker for example you can’t bring your family with you interesting decision but the number of visas issued last year was just under 500,000 500,000 so um this is a response to the labor shortages in 2122 and obviously the there’s a significant need for skilled labor so work visas can have quite a powerful short-term effect okay back to you back to you as a group uh you need to know the distinction between a free market supply side policy and an interventionist policy let’s do a quick revision on this can you please give me two of your best examples of free market supply side policies over to you I thought i’ just spend a bit of time there working through some supply side data with you hopefully at the end of this session you’ll have a just a really good appli and context ready for the exam whatever supply side comes up so choose to free market or sometimes called pro market supply side policies good answer there from Sam River W1 comes in privatization and U Union reforms good keep an eye on the chat when everybody is answers come through as always some superb stuff Liam’s got a nice point in there Fay incentives to work and they suggesting reforming the labor market so reducing the minimum minimum wage which I think is here to stay TGM talks about reducing red tape reducing trade B I like that answer by the way that’s got a nice International flavor to it here’s Liams answer Liams Anderson deregulation of green Bel land around the UK C is encouraging investment into infrastructure removal of migration rules allowing greater quantity of Labor some good stuff there a lot of you talking about uh lower taxes lower corporation tax Freddy says corporation tax was cut from 20 to 19% in 2022 well of course it’s now gone back up to 25% since that famous 2022 budget which didn’t last long really did it didn’t last as long as the Letts Evan talking about welfare reforms incentivize work increase the labor Supply yeah some good answers com through um so free market policies yeah so essential I’ll give you I’ll give you lots of examples in a second or two but free market is basically a shift towards less government less State intervention and more towards the kind of Market approach so deregulation such as telecoms Postal Services the energy sector of course we’ve seen lots of that in recent times so lots of new telecoms providers lots of new parcel companies new entrance into the energy sector so the aim is to attract new entrance enhance contestability bit of a micro term there increase investment and drive productivity now please note deregulation is not the same as privatization privatization is the change of ownership from state to private you can deregulate without changing ownership the postal post office the roal mail faced deregulation well before it was privatized and a lot of people talking about flexibility of the LA market so promoting zero contracts for migration flexible job contracts I’ve put there in the past this might have included laws governing trade unions my strong advice by the way to everybody in this live stream those watching on catchup um is not to talk about Union reforms quite honestly and please don’t mention Margaret Thatcher um God bless us all you know what happened in the 1980s and the 1990s was 30 40 years ago the examiners are expecting from you a much more contemporary awareness which hopefully this this session will help so please don’t uh sorry Nail’s got to go he’s going to catch up later can we just say um good buy to nail please but thanks for coming we really appreciate it and you’re going to get some love in the chat wouldn’t it Teddy says that that was the best prime minister in recent history depends what you definition of recent is Teddy of course but she certainly made a big difference to a lot of people’s lives okay so free market policies great stuff uh yeah what have we got there so quite a few mentioned tax cuts both person corporate taxes that will be free market policy getting rid of red tape bureaucracy privatization and liberalization of markets other other key things free trade if you’re a believer in trade liberalization that is a that’s a supply side policy so if you open up markets to trade get rid of tariffs and quotes allow Capital Mobility across borders those would be free market policies Marx says contest abilities in micro XL well here’s the point Max thank you for making that point by the way uh Max Booker um most macroeconomics have Micro foundations and most supply side policies operate at a micro level and if they’re sufficiently successful they have a macro effect so you can make markets more contestable that’s a micro aspect but it has a macro consequence especially if everybody faces cheaper prices okay um moving on can we now give me two examples of intervention supply side policies have a go what do we think interventionist Supply policies Yeah question there about Supply performance in Argentina it’s probably too early to tell but obviously we’ve got a free market Economist elected in Argentina somebody asked me the other day what what what have been the main economic consequences of the of the French Revolution uh in the 18th century and I said it’s just too early to tell really okay pigeon comes in one of our great contributors Regional policy yes leveling up would be an interventionist excellent minimum maximum wages Greg are talking about healthcare investment to reduce the long-term sick economic inactivity great stuff West talks about activist Regional policy the snack Bandit subsidies for R&D infrastructure investment yeah you’re getting the idea here so this is interventionist approaches as opposed to free market now there’s obviously some overlap between the two Daisy some great points there training schemes social housing nationalization can be seen as a supply side policy policies to reduce poverty investment in infrastructure you’ve got a fantastic uh hold there um Jacob talking about leveling up investment in transport infrastructure subsidies for infirm training um so Daisy and Jacob’s two contributions there um absolutely superb you’ve you’ve got that kind of depth there Victor talking about government spending infrastructure subsidies to firms to lower average costs really good Joor talking about uh subsidies to keep Industries alive such as the steel industry recently highlighted by Janet Yellen very interesting so um the chips that the Biden’s policies are very interventionist he’s brought in the um um us Recovery Act on things well worth checking out biomics for some good in good interventionist approaches there wow superb answers I’ve I’ve gone for minimum wages so I I would argue minimum wage is a supply side policy because it’s designed to stimulate active labor Supply improve work incentives and hopefully over time raise productivity others say it isn’t others say that we should move away from minimum wage but I personally believe in it always have done and always will and things about State subsidies so state funded out for nursing the years early years education affordable housing funding for Renewables funding for apprenticeships financial support for students taking degrees from low-income families the list goes on doesn’t it so but essentially they’re moving away from the free market there to bring in a form of intervention superb stuff uh Martin says tariffs aren’t a supply side policy well they can be seen as an interventionist supply side policy particular if you’re trying to promote Supply and investment and jobs in a protected industry so that’s fine in the same way that trade liberalization will be free market supply policy you believe in free trade okay moving on almost done everybody uh this is a really important Point super important and hopefully this next this last three or four minutes we’ll give you a a feel for this please if you get a question on ssps people like SSP questions they’re really good to get stuck into it but please please avoid generic answers so a lot of people like the government could spend more on education than training of course it could but you need to be more specific than that what type of education what type of training so the more detail if you like the more granular detail the better okay that opens the door for a and a star evaluation because you can then calibrate and say well one policy might be better than the short term one policy might be better in the long term so please don’t just two things first of all please don’t say the answer is the government spends more education and secondly please don’t say problem with ssps is time laap it’s so P it’s a bit like Grimsby town it’s just not exciting I wouldn’t pay to watch it so it wouldn’t pay the market okay so with that in mind with that in mind let’s take two questions to finish with we know that the UK needs to build more homes okay can you give me two supply side policies that might increase the long-term rate of new house building in the UK over to you have a go can you make it as specific as possible in the next minute even if you have to think of one policy ssps supply side policies yeah so kieran’s coming Builder apprenticeship skins can we build on the answer please we’re looking to lift the rate of new house building Jack’s got a nice point about red tape for planning permission so reforming planning good um yeah in ships within construction the more more detail the better good answers coming through yeah really good stuff by the way it’s not always easy to write in in a minute we appreciate that and often times in the next 15 20 seconds some even better answers will start coming through the chat as they already doing now so we’ll TR to pick up on a couple of them Liam talking about um subsidies such as the affordable home scheme uh Reduce by tape around the green belt some really good stuff a lot of you talking about apprenticeships which is excellent particularly you link it to building so appren ships for what for engineering for surveying for construction work that kind of stuff J interestingly talking about reducing vat and buying Farmland to allow firms more cheaply to invest in land and construct housing reduces costs a really good point linking vat as a fiscal supply side policy okay if the the aim is to increase Supply so it’s any policy that increases Supply can be counted as a supply side policy wow the answers keep flying through some great answers coming in here in mind planning reforms yeah so cutting bureaucracy making more land available for new housing trying to overcome nimbyism nimbyism not in my backyard as I look out of my window now uh I can see some new houses being built and uh there’s been some local objections I don’t personally object to new houses being built because I’m an economist fiscal supply side policies tax breaks subsidies grants so take away VAT on building materials take away VAT on on um developments on Brownfield land or conversely tax undeveloped land where housing permissions being given a lot of businesses buy the land get the permission they then don’t build so maybe a land tax loads and loads um okay Peter says Jeff what are some good evaluation points for ssps that are not about opportunity cost time well I I will go through them in a second okay last question today everybody amazing numbers in the group now here we go here’s a here’s a challenge for you supplies have policies that might reduce inactivity in the labor market trying to give one short ter and one long-term policy and try to be specific one minute to finish off with over to you you actually smashed the housing question we’ve got 9 and a half million people who are inactive who of working age but not active in the labor market it’s a barrier to growth it limits our aggregate supply so what policy might reduce inactivity keep in mind there Zach that the unemployed are not inactive so cutting benefits doesn’t reduce inactivity because the unemployed are not part of the inactive unemployed are actively looking for work pain the goat one of our great contributors comes in with that point there Michael ah I like Michael’s point I’ll talk with three a minute Zach says my bad Jeff thank you for correcting me well that’s fine it’s always good by the way I once ordered on Amazon 300 bottles of tipex that was a big mistake so Ben Richard short-term allow greater migration long-term investment in the healthcare the 9 million that economically enacting 3 million of my healthful aged Ben that is exactly the type of answer I’m looking for exactly the type of answer you’re making a distinction between short-term and long-term supply side policies it invites really good evaluation because you can then say well you know what’s the cost of how much are we going to have to spend on Health and Social care Grace talks about investments in treatments to cure chronic health conditions long covid absolutely and of course the you know George says Jeff surely could return some of that tipex that’s true actually yeah George is your middle name toex by the way correct me if I’m wrong and what else we got coming through uh oh yeah house to talking about four day work working week okay talking about that the Boost productivity okay so improve working motivation and productivity P says the Jeff’s getting inol buying econ of scale with the tipex that’s absolutely true by the way but it was a big mistake uh some some really good answers wow that’s unbelievable can I share my thoughts with you because we’re conscious of time here this is my final slide today by the way if you want to take a screenshot uh feel free so shortterm policies maybe increasing the minimum wage above 11 44 maybe moving towards 12 pounds or even higher to encourage more uh students for example to to work part-time as well as study or get more people to make work pay to reduce working poverty uh a rising income tax free allowances I thought some of you might say well should we have an income tax freance of £15,000 or £20,000 to get people to uh look for work um subses for childcare costs the government’s offering taxfree childcare but often we don’t have the supply side capability at the moment something that affects me tax relief on pension contributions for over 50s many of the over 50s have retired early uh and if they start working again they they start paying a lot of tax on their pensions expansion the work visa program so Hopey you can see here that there are some shortterm policies that might make a difference within a year or two possibly whereas longer term supply side politices have a longer gustation um policy So and I’ve used the word investment all all in all three examples investment in preventative health services to reduce chronic illness I think Grace mentioned long covid investment in transport and telecoms infrastructure to improve mobility of Labor allowed more people to work from home for example 4 day working week uh and investment in human capital so stem education further education degree apprentic ships and back to work programs for the long-term discouraged workers what I’m saying here it’s a nice evaluation point it’s a need point to say well actually not every supply side policy takes a decade to to to kick in sometimes you you need a mix of policies operating at a micro level to change incentives to grow the labor Supply Sam say a short term within a year not really uh it’s it’s within a cycle okay valuation points yeah so with three Market policies for example what’s the consequences for inequality so if you cut tax rates at the top end what are the consequences for income and wealth inequality if you subsidize Child Care who’s who’s going to pay for that and critically are there enough child care companies that can make a profit to provide the services so we’re finding for example that there’s just excess demand for nursery places because the government’s offered the tax incentive but the nurseries many of them are closing down they can’t afford and they can’t expand there’s an elasticity problem so often times with ssps There’s an opportunity cost true but OPP cost is is the uh the fiscal cost uh and also the distributional consequences what you really need if you can take P’s point away there please what you really need with the supply side is is a competitive micro economy you need businesses you need startups you need an ecosystem where that promotes Innovation and efficiency and dynamism in the economy and and some countries have it South Korea the Netherlands increasingly countries like Mexico have a very Dynamic uh and Diversified industrial base and it shows through on the UK in the UK we can’t even fill the potholes in the roads we have millions on the NHS waiting lists okay our supply side is held back by a chronic lack of public investment in my opinion I’m just an oldfashioned Cambridge Economist well done everybody um wow hopefully you found that useful today if you did press the like button if you didn’t find it useful then just press the like button on the way out there is so much to cover on side isn’t a huge amount to cover and hopefully we give lot of application the answers in the chat window just different level different gravy and I like gravy okay they are a fantastic quality answer now join us tomorrow I think tomorrow we’re doing contestable markets and then poverty and inequality Matthew says well there’ll be more live streams after you so we’re going to carry on Matthew every day all the way through next week the week after uh yes next two weeks for sure is that right yes I think so the week after the Monday the 23rd of course we’re down in London so I’ll do one on a Monday and then we have four dates live in London the grade boost of course and we crack on WE crack on in the first two weeks of May we’ll be doing daily live streams on key topics so that’s all something to look forward to I really I really enjoy doing them by the way because they’re a great group an expanding community of students fantastic to be with you so take care stay safe stay positive stay healthy stay happy and see you sometime soon