... fewer regulators need to be employed by the government or local councils. Also less regulation should encourage more competition. However, many rules affecting business were to stop exploitation: is this acceptable nowadays? Another disadvantage is that competition does not necessarily provide what society wants; it may only provide what is profitable. Privatisation is another supply side policy. This involves selling off state-run organisations and transferring them to the private sector. The idea is that privately run companies are more efficient and competitive and as a result they will increase. Advantages of privatisation are that the government can reduce its borrowing by selling these companies, and thus follow other policies which it believes increase efficiency, such as lowering income tax. Also, industrial relations and productivity should improve as workers recognise that there is no state support if the company fails. Managers will also have greater responsibilities for ensuring continuity of production. Nevertheless, many state-run ...

See this essay or coursework document in full right now