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Ash4781

Protectionist Policies Be Used To Generate Inflation

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Could protectionist policies be used to generate inflation ?

Say you decided to limit the supply of labour or houses could they generate inflation? (for labour guess would lead to rise in unemployment not sure about houses maybe rationing)

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I understand that inflation figures exclude tax (protectionist policies). If the tax make the price double, there is 0% inflation....Unofficially yes, if you add lots of import duties things cost more so the unofficial rate of inflation rises..

On the labour side, I think it is difficult to restrict labour, you cant close borders, and you cant change or reduce population quickly. Because it cant be changed I don't think there will be any effects. In theory if you look at the surface if you reduced the population you would have more available jobs for less people, however if you look in more detail if you have a smaller population you dont need as many jobs to service the population! Culling the population would probably reduce the number of available jobs/make the economic crisis worse as less people are living in the uk and spending in the UK.

It is probably better to allow unrestricted immigration without access to any benefits as this will increase the number of people spending in the Uk, and create more job opportunities.

Edited by moosetea

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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