Discuss how far recent UK economic policy has been successful in achieving the macroeconomic objectives
Discuss how far recent UK economic policy has been successful in achieving the macroeconomic objectives.
The four main macroeconomic objectives are: full employment, price stability (low and stable inflation), sustainable economic growth, and a healthy Balance of Payments.
A diagram showing unemployment and jobseekers allowance in the UK:
On the diagram shown above, unemployment within recent years (2008-2013) is seen to be increasing. In 2011 unemployment peaked at 2.6 million which around the time the chancellor George Osborne said “...the government was continuing efforts to help create new jobs” followed by "Policies like enterprise zones... are going to make a real difference”. The policy in question is a supply side policy, Enterprise zones which are geographical areas seen as impoverished in which incentives such as tax concessions are offered to encourage investment and provide jobs for residents to help support genuine growth and create new businesses. Enterprise zones are effective because lower taxes and less regulation will increase jobs and incomes in the zones by attracting capital, labour, and economic activity. To make an Enterprise zone successful is must be accompanied with targeted investments in skills and infrastructure, to ensure that they lead to lasting improvements in competitiveness otherwise they do very little to promote lasting economic prosperity. How successful enterprise zones are depends on the extent of government spending for example, transportation problems: The area may have poor access to roads, rail, and other means to transport goods and services which is a barrier, preventing increases in economic activity. Also spending cuts, a fiscal policy which are Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending. During 2011 the UK government announced big cuts to public spending which resulted in the loss of 10,000 public sector jobs in
The four main macroeconomic objectives are: full employment, price stability (low and stable inflation), sustainable economic growth, and a healthy Balance of Payments.
A diagram showing unemployment and jobseekers allowance in the UK:
On the diagram shown above, unemployment within recent years (2008-2013) is seen to be increasing. In 2011 unemployment peaked at 2.6 million which around the time the chancellor George Osborne said “...the government was continuing efforts to help create new jobs” followed by "Policies like enterprise zones... are going to make a real difference”. The policy in question is a supply side policy, Enterprise zones which are geographical areas seen as impoverished in which incentives such as tax concessions are offered to encourage investment and provide jobs for residents to help support genuine growth and create new businesses. Enterprise zones are effective because lower taxes and less regulation will increase jobs and incomes in the zones by attracting capital, labour, and economic activity. To make an Enterprise zone successful is must be accompanied with targeted investments in skills and infrastructure, to ensure that they lead to lasting improvements in competitiveness otherwise they do very little to promote lasting economic prosperity. How successful enterprise zones are depends on the extent of government spending for example, transportation problems: The area may have poor access to roads, rail, and other means to transport goods and services which is a barrier, preventing increases in economic activity. Also spending cuts, a fiscal policy which are Government spending policies that influence macroeconomic conditions. These policies affect tax rates, interest rates and government spending. During 2011 the UK government announced big cuts to public spending which resulted in the loss of 10,000 public sector jobs in