Supply Side Policies Real World Examples

IB Economics - Macroeconomics - Supply Side Policies - Real World Examples

Infrastructure project by the UK government

HS2 Railway (£100 billion)

Infrastructure project by the Chinese government

Coastal Railway in Nigeria ($12 billion)

Education as a SSP

Education in Cuba - particularly women

Deregulation as a SSP

Thatcher - ‘Big Bang’ - 1983 (deregulation of the London Stock Exchange)

Privatisation as a SSP

BT - 1984 - Improved efficiency

Reduction in Unemployment benefits

UK government - Job seekers can look for work similar to old job: 3 months → 1 month

Reducing the power of trade unions

UK Government under Thatcher - Employment Acts of 1980s (increased compensation for fired people and reduced immunities for trade unions)

Reduction in income tax

Thatcher government in the UK slashed the top rate of income tax from 83% to 60%

Reduction in corporation tax

Trump administration, 35% to 21%