debate for economicsWatch
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Think of ways the government could reduce it:
Cut benefits giving people more incentives to work so they can be taxed
Increase education/training programs, although this increases the deficit in the short run in the long run it will yield more skilled workers, higher incomes, more tax revenue, greater competition and rise in AD and GDP.
Privatisation, again more revenue, better efficiency
Policies take time, might not be so effective, will contradict other policies, e.g causes higher inflation, monetary policies can be used instead