Friday, September 08, 2006

Supply side policy

(Please include this under Pg 15 of your “Compact Revision Notes 2006” I gave out via email)

Recall: Supply side policies are long term measures intended to increase the productive capacity of the economy. This can be done through rapid technological advances, accumulation of capital stock, and continuous rise in labour productivity, which will shift the AS curve to the right.

Other than measures targeted at increasing labour productivity (i.e. through promoting quality education; and constant training & upgrading of the workforce), supply side policies would also include those targeted at increasing investment (including inflow of foreign direct investment), encouraging entrepreneurship; and encouraging technological advancement (i.e. R&D). Govt spending on infrastructure for the economy (e.g. highways, transport and communication networks) is also part of supply side policies.

The chief characteristics of supply-side economics (in Singapore) are:

  • Cuts in tax rates: This is done with the intention of encouraging work effort (i.e. people to work harder, for longer hours) and to increase savings, as well as to encouraging firms to invest. In Singapore, corporate tax was reduced from as high as 40% many years ago to the recent 20%.
  • Use of tax and financial incentives: Used for a variety of reasons, e.g. tax holidays (of up to 10 years) for high-tech firms or headquarters operations to be set up in Singapore, loans for capital investment, financial grants for innovation and R&D, as well as grants for workers’ training & upgrading.
  • Work Incentives: Various types of incentives, bonus or profit-sharing schemes are used to encourage labour to work harder and become more skilled, e.g. the NWC encourages firms to tie annual wage increases for workers to increases in their productivity.
  • Encouraging the entrepreneurship spirit by relaxing the bankruptcy act, and by promoting enterprise in schools and tertiary institutes.
  • Building and maintaining world-class economic infrastructure and services. This is evidenced by the fact that development expenditure accounted for around one-third of government expenditure on average over the last three decades
  • To reduce the role of the government so that the private sector will play a greater role: This is done by deregulation.
    In Singapore, government expenditure is directed primarily at promoting long-term economic growth (supply side policies), rather than cyclical adjustment (fiscal policies) or distributing income (e.g. unemployment benefits).

    However, as with limitations of policies to encourage workers to upgrade and retrain, the above policies may also have their limitations. These include:

    • “Tax incentive war” between countries as they compete fiercely for foreign investment. For example, besides Singapore, Malaysia, Hong Kong, Thailand, Australia, China and even Vietnam are offering similar tax incentives to attract foreign investment. Hence, a low tax rate as well as a range of tax and financial incentives alone is not sufficient to encourage FDI. Other factors such as political stability and having a conducive business environment are just as critical, if not more so.
    • Encouraging entrepreneurship to raise the AS is a slow long-drawn process. Due to the high comfort zone that Singaporeans have enjoyed as a result of continuous increases in living standards over the past 30 to 40 years, individuals may be reluctant to take the risks of being entrepreneurs, especially if they can find work easily in multinational corporations (MNCs) or as civil servants. A mindset change in society is hence needed to bring about the risk-taking spirit among the population.

    23 Comments:

    Anonymous Anonymous said...

    Hello !.
    You re, I guess , probably very interested to know how one can make real money .
    There is no need to invest much at first. You may start earning with as small sum of money as 20-100 dollars.

    AimTrust is what you need
    The company represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

    Its head office is in Panama with affiliates everywhere: In USA, Canada, Cyprus.
    Do you want to become a happy investor?
    That`s your choice That`s what you really need!

    I`m happy and lucky, I began to get real money with the help of this company,
    and I invite you to do the same. If it gets down to choose a proper partner utilizes your funds in a right way - that`s it!.
    I make 2G daily, and what I started with was a funny sum of 500 bucks!
    It`s easy to join , just click this link http://yvyvydytab.virtue.nu/pejaly.html
    and go! Let`s take our chance together to become rich

    2:10 PM  
    Anonymous Anonymous said...

    Hello !.
    You re, I guess , perhaps curious to know how one can manage to receive high yields .
    There is no initial capital needed You may begin earning with as small sum of money as 20-100 dollars.

    AimTrust is what you need
    The firm incorporates an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

    It is based in Panama with affiliates everywhere: In USA, Canada, Cyprus.
    Do you want to become a happy investor?
    That`s your choice That`s what you desire!

    I feel good, I started to take up real money with the help of this company,
    and I invite you to do the same. It`s all about how to select a correct companion who uses your savings in a right way - that`s AimTrust!.
    I make 2G daily, and my first deposit was 1 grand only!
    It`s easy to get involved , just click this link http://hujahufir.easyfreehosting.com/ribawaki.html
    and go! Let`s take our chance together to get rid of nastiness of the life

    5:48 PM  
    Anonymous Anonymous said...

    Hello everyone!
    I would like to burn a theme at here. There is such a nicey, called HYIP, or High Yield Investment Program. It reminds of financial piramyde, but in rare cases one may happen to meet a company that really pays up to 2% daily not on invested money, but from real profits.

    For quite a long time, I earn money with the help of these programs.
    I'm with no money problems now, but there are heights that must be conquered . I make 2G daily, and my first investment was 500 dollars only.
    Right now, I'm very close at catching at last a guaranteed variant to make a sharp rise . Visit my blog to get additional info.

    [url=http://theblogmoney.com] Online investment blog[/url]

    11:17 AM  
    Anonymous Anonymous said...

    Hi!
    You may probably be very interested to know how one can make real money on investments.
    There is no need to invest much at first.
    You may begin to get income with a sum that usually goes
    on daily food, that's 20-100 dollars.
    I have been participating in one project for several years,
    and I'll be glad to let you know my secrets at my blog.

    Please visit blog and send me private message to get the info.

    P.S. I earn 1000-2000 per day now.

    [url=http://theinvestblog.com] Online investment blog[/url]

    3:45 PM  
    Anonymous Anonymous said...

    Good day!

    Sure, you’ve heard about me, because my fame is running in front of me,
    friends call me James F. Collins.
    Generally I’m a social gmabler. all my life I’m carried away by online-casino and poker.
    Not long time ago I started my own blog, where I describe my virtual adventures.
    Probably, it will be interesting for you to find out my particular opinion on famous gambling projects.
    Please visit my web page . http://allbestcasino.com I’ll be interested on your opinion..

    9:05 PM  
    Anonymous Anonymous said...

    You have tested it and writing form your personal experience or you find some information online?

    5:58 PM  
    Anonymous Anonymous said...

    Hey i just came here to let you know about a service i offer. I offer cheap backlinks that can help you website rank significantly better on Google. Traffic is everything and to get decent traffic you need to rank well in the search engines. My service can help provide that, check out my site http://hellomotow.net/backlinks

    5:00 AM  
    Blogger chenlina said...

    chenlina20150603
    celine handbags
    ralph lauren uk
    coach factorty outlet
    ray ban sunglasses
    soccer jerseys
    cheap oakley sunglasses
    gucci shoes
    tods outlet
    michael kors outlet
    cheap jerseys wholesale
    burberry sale
    christian louboutin sale
    kids lebron shoes
    christian louboutin sale
    adidas outlet
    oakley sunglass
    hollister
    jordan retro 4
    coach factory outlet
    insanity workout
    abercrombie and fitch
    celine handbags
    gucci bags
    coach outlet
    louis vuitton outlet
    abercrombie
    ray-ban wayfarer
    burberry outlet
    michael kors
    christian louboutin outlet
    michael kors outlet online
    louis vuitton handbags
    michael kors outlet
    michael kors watches
    kobe bryant shoes
    hollister clothing
    celine bags
    hogan outlet
    gucci outlet online
    coach outlet

    11:01 AM  
    Blogger Unknown said...

    fitflop
    christian louboutin sale
    coach outlet store online
    coco chanel
    gucci outlet
    beats headphones
    oakley sunglasses
    christian louboutin outlet
    coach factorty outlet online
    oakley sunglasses
    ray ban eyeglasses
    marc jacobs outlet
    michael kors outlet online
    jordan 11
    louis vuitton
    polo outlet
    hollister clothing store
    coach outlet
    ray ban wayfarer
    michael kors uk
    pandora uk
    lululemon
    chanel outlet
    oakley sunglasses
    cheap jerseys
    oakley outlet
    p90x workouts
    chanel no 5
    pandora rings
    chanel outlet online
    jordan retro 11
    christian louboutin outlet
    nike air max
    lebron james shoes 2015
    cheap ray ban sunglasses
    hermes bags
    20150710xiong

    3:35 PM  
    Blogger 林磊 said...

    2015-10-28leilei
    nike air max 90
    Canada Goose Outlet,Canada Goose Outlet Online,Canada Goose Clearance
    michael kors bags
    michael kors outlet
    Air Jordan 8
    Louis Vuitton Handbags Official Site
    coach outlet online
    coach outlet
    abercrombie store
    tory burch sale
    michael kors outlet
    Christian Louboutin Sale For Men And Women
    Michael Kors Handbags Outlet
    authentic louis vuitton handbags
    coach outlet
    Michael Kors Outlet Sale Online
    fitflops sale clearance
    michael kors outlet
    true religion jeans
    north face outlet
    Michael Kors Outlet
    Michael Kors Handbags Outlet Online
    michael kors uk
    Canada Goose Jackets/Coats And Parka Online
    michale kors outlet online
    coach factory outlet
    Louis Vuitton Handbags On Sale
    ugg boots wholesale
    Louis Vuitton Outlet Online Shop
    nike shorts,nike hoodies,nike town,new nike shoes,nike tennis shoes,air max 97,nike shop,nike basketball
    Official Coach Factory Outlet Online
    montblanc pen
    ugg boots on sale
    Mont Blanc Pens
    Canada Gooses Sale,Canada Gooses Jackets,Canada Gooses Coats,Canada Gooses Parka

    10:58 AM  
    Blogger John said...

    uggs outlet
    louboutin pas cher
    ugg boots
    ugg boots on sale
    cheap ugg boots
    true religion jeans
    michael kors handbags
    michael kors outlet
    jordans
    ralph lauren outlet
    tory burch outlet
    ray ban outlet
    coach outlet
    montblanc
    ugg outlet
    ugg outlet
    celine bags
    ralph lauren uk
    oakley sunglasses wholesale
    marc jacobs
    ugg australia
    ray ban outlet
    coach outlet
    toms
    michael kors outlet
    louis vuitton handbags
    ray ban sunglasses outlet
    coach factory outlet
    ray-ban sunglasses
    chanel bags
    louis vuitton handbags
    michael kors outlet
    20151208yuanyuan

    9:29 AM  
    Blogger oakleyses said...

    nike air max, burberry outlet, prada outlet, michael kors handbags, ray ban sunglasses, christian louboutin, louis vuitton outlet, ralph lauren polo, longchamp outlet, louis vuitton, cheap oakley sunglasses, uggs outlet, louis vuitton handbags, prada handbags, ray ban sunglasses, michael kors outlet, michael kors, longchamp outlet, oakley sunglasses, tory burch outlet, michael kors outlet online, ralph lauren outlet, replica watches, burberry factory outlet, tiffany jewelry, louis vuitton outlet, cheap jordans, oakley sunglasses, louis vuitton outlet online, kate spade, ray ban sunglasses, uggs on sale, louboutin shoes, gucci handbags, louboutin uk, christian louboutin, michael kors outlet online, michael kors outlet online, uggs outlet, chanel handbags, tiffany jewelry, uggs on sale, nike outlet, oakley sunglasses, uggs on sale, nike free

    10:06 AM  
    Blogger oakleyses said...

    abercrombie and fitch, lunette oakley pas cher, jordan pas cher, michael kors, lunette ray ban pas cher, polo ralph lauren uk, sac guess pas cher, hollister uk, converse, replica handbags, nike blazer pas cher, michael kors, true religion outlet, nike free pas cher, coach outlet, north face uk, hermes pas cher, nike roshe uk, nike tn pas cher, burberry pas cher, north face pas cher, true religion jeans, lululemon outlet, nike air max uk, ray ban uk, true religion outlet, coach outlet store online, nike free, louboutin pas cher, nike air max, michael kors uk, vans pas cher, mulberry uk, longchamp soldes, nike air max uk, nike roshe run pas cher, timberland pas cher, nike air force, coach purses, hogan sito ufficiale, new balance, vanessa bruno pas cher, ralph lauren pas cher, kate spade outlet, abercrombie and fitch UK, michael kors outlet online, true religion outlet, polo lacoste pas cher

    10:08 AM  
    Blogger oakleyses said...

    bottega veneta, hollister clothing, ghd hair, iphone 6s cases, p90x workout, soccer jerseys, iphone 6 cases, instyler ionic styler, asics running shoes, nfl jerseys, vans outlet, mcm handbags, s6 cases, nike roshe run, mont blanc, north face outlet, iphone 6s plus cases, herve leger, valentino shoes, nike air huarache, celine handbags, north face outlet, mac cosmetics, louboutin, softball bats, iphone 5s cases, babyliss pro, reebok outlet, insanity workout, polo ralph lauren, timberland boots, new balance shoes, abercrombie, hermes handbags, iphone 6 plus cases, jimmy choo outlet, beats by dre, oakley, longchamp uk, lululemon outlet, giuseppe zanotti, iphone cases, abercrombie and fitch, salvatore ferragamo, nike trainers uk, chi flat iron, ipad cases, soccer shoes, wedding dresses, nike air max

    10:09 AM  
    Blogger oakleyses said...

    hollister, swarovski jewelry, barbour jackets uk, pandora charms, canada goose pas cher, louis vuitton uk, ugg uk, converse, moncler, louis vuitton, supra shoes, moncler, swarovski uk, pandora jewelry, lancel, canada goose, sac louis vuitton, marc jacobs, wedding dresses uk, juicy couture outlet, moncler, karen millen uk, toms shoes, ugg,ugg australia,ugg italia, moncler jackets, doke & gabbana, canada goose uk, canada goose jackets, canada goose outlet, sac louis vuitton, ugg pas cher, louis vuitton, pandora jewelry, gucci, coach outlet, moncler pas cher, bottes ugg pas cher, converse shoes outlet, canada goose outlet, moncler uk, ugg,uggs,uggs canada, hollister, montre pas cher, vans scarpe, ray ban, juicy couture outlet, replica watches, links of london uk, canada goose, nike air max, moncler

    10:11 AM  
    Blogger Nike Free said...

    Michael Kors Flagship Store
    michael kors outlet online store 49.00 outlet
    2015 Michael Kors
    Michael Kors Bags On Sale
    Michael Kors Purses,Michael Kors Wallet,Cheap Michael Kors Purses
    Michael Kors Jewelry Sale
    Michael Kors Backpack
    Michael Kors Crossbody
    michael kors
    michael kors outlet
    michael kors outlet stores
    2015 michael kors outlet
    michael kors outlet online sale
    michael kors outlet online sale
    michael kors sale
    Michael Kors Wallet
    michael kors handbags
    michael kors purses
    michael kors tote
    michael kors bags
    michael kors uk
    macys michael kors
    michael kors factory
    michael kors outlets

    1:09 PM  
    Blogger Chenzhen 20160303chenzhen said...

    concord 11
    prada handbags
    moncler kids
    ugg boots
    kobe shoes 11
    gucci handbags
    coach factorty outlet online
    cheap oakley sunglasses
    rolex watches
    michael kors outlet
    coach outlet
    uggs outlet
    rolex watches
    coach outlet online
    ray bans
    ray ban sunglasses outlet
    canada gooses outlet
    oakley sunglasses
    nike roshe run mens
    toms wedges
    supra footwear
    retro 11
    true religion outlet store
    jordan retro 13
    ralph lauren
    coach factory outlet
    air jordan homme
    air max 95
    louis vuitton handbags
    montblanc pens
    ugg boots
    nike blazers shoes
    cheap jordans
    ray ban outlet
    louis vuitton outlet stores
    nike store uk
    ray ban uk
    true religion jeans outlet
    louis vuitton bags
    coach outlet online
    20160321chenzhen

    10:48 AM  
    Blogger Nike Free said...

    macys michael kors
    michael kors hamilton
    jordan shoes
    jordan 11
    kd shoes
    nike hyperdunk 2015
    nike air max 2014
    nike air max 2015
    nike free run 2015
    nike store
    louboutin outlet
    Red Bottom Shoes For Women
    mbt canada
    mbt shoes outlet
    fitflops clearance
    fitflop shoes
    Nike Kobe 9
    Kobe Shoes
    christian louboutin sale
    christian louboutin shoes
    jordans for sale
    jordan 11 legend blue
    Jordan 11 Concord
    Jordan 11 Retro 72 10
    coach outlet online
    online outlet stores
    Michael Kors Cheap
    michael kors outlet
    Michael Kors Outlet Store
    Cheap Michael Kors
    michael kors tote
    michael kors bracelet
    michael kors Chicago Premium Outlets

    12:39 PM  
    Blogger dong dong23 said...

    timberland boots
    michael kors outlet
    louis vuitton handbags
    toms shoes
    nike roshe run
    louis vuitton outlet
    toms shoes
    christian louboutin shoes
    cheap jordan shoes
    cheap nfl jerseys
    cheap jordans
    true religion outlet
    michael kors outlet
    adidas originals
    kate spade
    michael kors outlet online
    gucci
    jordan shoes
    michael kors handbags
    louis vuitton
    polo ralph lauren outlet
    jordan 3 infrared
    ed hardy clothing
    ghd hair straighteners
    christian louboutin sale
    oakley sunglasses
    jordan 4 toro
    toms shoes
    adidas originals shoes
    michael kors handbags
    michael kors outlet clearance
    coach factory outlet
    ray ban wayfarer
    coach outlet
    longchamp handbags
    true religion outlet
    cheap oakley sunglasses
    louis vuitton outlet
    louis vuitton outlet
    vans shoes outlet
    20168.1wengdongdong

    5:57 PM  
    Blogger happy 123 said...

    nike blazer pas cher
    hermes belts
    gucci shoes
    polo ralph lauren
    michael kors handbags
    yeezy shoes
    ugg boots
    ralph lauren outlet
    skechers shoes
    ray ban sunglasses
    20170801

    8:33 AM  
    Blogger raybanoutlet001 said...

    reebok shoes
    miami heat jersey
    armani exchange
    nike huarache
    fitflops shoes
    nike blazer pas cher
    michael kors outlet
    tennessee titans jersey
    ugg boots
    oakley sunglasses

    10:37 AM  
    Blogger 郑佳颖 said...

    adidas ultra boost
    ferragamo belt
    adidas ultra boost 3.0
    kobe sneakers
    nike air max 90
    cheap jordans
    nike air max95
    curry 4
    longchamp
    nike roshe run one

    2:26 PM  
    Blogger chenlina said...

    chenlina20170919
    the north face jackets
    michael kors handbags
    coach factory outlet
    jordan shoes
    true religion outlet
    pandora charms
    canada goose outlet
    adidas yeezy
    ugg australia boots
    ralph lauren uk

    8:08 AM  

    Post a Comment

    Subscribe to Post Comments [Atom]

    << Home