Supply Side Policy

Written by Anuar Burkitbayev and Alexey Dudarev.

Supply-side policies are used to increase the national output (everything a country produces). They usually make it easier for producers to create and or distribute their goods and services. Supply-side policies may include:

• Tax Incentives - reducing taxes on profits to encourage people to start their own small firms

• Subsidies or grants - reducing production costs or helping firms to fund research and development. 

• Education and training - teaching new and existing workers new skills to make them more productive at work.

• Privatization - selling public companies to private firms for them to be more efficient.