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UK Economic Policies - Dissertation Example

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The current paper "UK Economic Policies" is purposed to explain that the economic policies adopted by UK can be dissected into two parts – before and after the 1990s. Broadly speaking, the plans undertaken in the 1990s were a part of the liberalization move…
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UK Economic Policies
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UK Economic Policies

Download file to see previous pages... Economic Policy Measures undertaken on or before the 1990s.

• Privatization
 Mainly aimed to tackle the stagflation that gulped the nation during the 1970s and to prevent further such developments. However has been criticised by a number of economists.
 Also enabled the revision of labour laws so as to reduce the power of the labour union and assign more power to the company.
 Moreover, the competitive spirit that the step would instil among the producers will help the nation to achieve a comparatively advantageous position.
 Most relevant sectors, other than the postal system, were privatized.
 The scheme was preceded by a number of failures and required a lot of effort from the then Prime Minister, Margaret Thatcher, before it finally achieved success almost a decade later.
• Reduction in unemployment benefits combined with a modification of tax laws that might act as an incentive for higher production and thus an improved GDP position (Wagnur, 2000).
• Modification of the education system in the country and providing maximum financial coverage to the students.
• New pension plans so as to shift the burden from the state to the individuals.
 Introduction of pay-as-you-go scheme in the occupational structure, where the individual has to purchase and become a part of some pension benefit scheme (Taylor-Gooby, 2006).
• Increased housing ownership due to introduction of buyer-side subsidies.
• Capital account convertibility that helped the inflow foreign investments. ...Download file to see next pagesRead More
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