Reduction in income taxes, reductions in corporation taxes, reduction in trade union power, reduction or elimination of minimum wages, reduction in unemployment benefits, deregulation, privatisation, education and training, research and development, provision of infrastructure, improved information. TO UNEMPLOYED PERSON:
receive less income, lower standards of living, person who remains unemployed for long periods of time subject to high levels of stress, anxiety and depression, relationship break downs, suicides. Deterioration of human capital as they lose skills and become demotivated.
places where high levels of unemployment can see in form of poverty, homelessness, higher rates of crime and vandalism, increase gang activities
TO ECONOMY AS A WHOLE: Production possibilities curve can be used to illustrate key problem, possible output operating at point within its production possibility curve. Opportunity cost of the government's spending on unemployed benefits, if more unemployed people government earns less in direct and less taxes and will need to spend more money to solve the social problems created by unemployed. Less investment.