Market-based Policies

Market-based supply-side policies aim to raise potential national output by making markets work more efficiently and strengthening incentives. The text explains competition policies (deregulation, privatization, trade liberalization, anti-monopoly regulation), labour market reforms (weakening union power, reducing unemployment benefits, changing or removing minimum wages), and incentive-related tax policies. These policies are contrasted with interventionist approaches and are linked to long-run aggregate supply. Real-world cases show how competition and labour market changes can affect prices, efficiency, employment, and equity.