 Universal public provision ran as monopolies by the  Minimum wage leads to economic inefficiency as costs

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state
 Inefficiencies because of high levels of bureaucracy
 No competition to drive costs and prices down
 No incentives to profit as if more money is needed =
more tax
for firms are higher
 The Institute of Economic Affairs did a study in 1999
prior and concluded that in a recession a minimum
wage leads to markets being unable to clear because
firms won’t take on people at a lower wage.

Criticisms Of Government
Policy to reduce Income
Inequality

 High level monetary benefits- poverty trap

 This is where people are better off not working and
staying on benefits
 Coalition government legislation for cap on benefits
 Important so productive efficiency occurs
 Progressive taxation systems create disincentives to work
 High Taxation can lead to increased crime levels
 Lord Adair Turner- explains the idea of dominance and a
need for intelligent people to excel, one way is to earn lots
of money, if taxed away then people want to excel in other
areas