Hello, Rory. Hello. Rory, can you hear me? Can you hear me, roory? Yeah, Yeah, sorry, I thought you were not here, so I would. I just went out so you got something. Okay, can you sign your camera on Roy? I do not think I do not think a how connect turn and out it's disabled but I said FaceTime hd camera, but it doesn't work. I don't mind necessarily about each individual lesson or is just B, I think it's really important for me to be able to and for you as well to be able to kind of see each other even if it's through care. I think it really help the lesson. So if you can really try to to do this because I've insisted quite a few times, right? And I think it's itbe. Yeah, no, I've had quite a lot of ignolessons though. I think I think I will be able to looking like because yesterday I had lots of economic lessons, so today I'll be able to like do it quickly, you know, because I actually had like four economic lessons yesterday. So Yeah, I think don't need to worry about like if I'm not like to say I'm actually I'll be I'll be very luto say in trust. I mean, it's it's not so much about the actual seeing you I mean obviously be great, but it's just it's more in terms of the like the that that I it's also helps me right do my job is basically trying to help you with the Econ. I think like Yeah Yeah you are happening again, but itbe great I think will be even better, right? If you could try to in the future, I think that it would help me a lot. Yeah, Yeah, okay, okay, okay, okay, okay. So we did a bit of fiscal policy last time, right? Yeah and basically we looked at its impact on agdemand, right? Do you remember that we're from the last time? Yeah. So we looked at fiscal policy, and we defined fiscal policy. We remembered it as fiy g and t physigenand tonic way. So fiscal as government spending and taxation. And then we basically thought about, obviously this an expansion fiscal policy can stimulate any economy, right? And we looked at the different channels through which fiscal policy can be expansionary. So if we think of expansionary fiscal policy ruaring, how does that help? How does that boost aggregate demand? Aggredemand when the fiscal policy is. Policy fiscal policy effects ects agurate demand exactly through which channels. This call policy hundred in the moment, it's because it's the decision, it's because like we know like the formula c plus I plus g plus x minus m right? Okay, consumption plus investment plus government spending ding plus import minus appor minus import. Yep, I agree. Yep. So basically how does go on, go once go. Well, there's like increasing government spending, like agdemand increase when there's like a decrease in tax t and there will be like a decrease in aggregate demand and they're sorry, it will be increasing aggregate demand again, like something like this. How how how does so I agree. Okay. It's quite obvious that t goes up because it's expanpantry fiscal, which involves one of two, right? If doesn't if it involves increase in g, increasing government spending, Yeah g goes up, right? And ad goes up. That's great, right? But you I mentioned t. Well, t is not it's not really defined as big t. It's just tax, right? So let's say the tax rate goes down. Let's say this expansion in fiscal policy through tax. So tax rate goes down. What does it affect within ad? There's no big t in ad. It's c plus cyplus t plus x minus m. Mary. So which of these letters or variables is affected? Like talking about all the variables. So a decrease in tax, right? You said a decrease in tax increases ad, Yeah, but why can you tell me which, which through which of these variables, C, G, X, lm? Assusee. Okay. Why why can you explain that we should it's rebuy something. There's consumption. Okay. So why does consumption change? Just why does that change based on tax? It's not much your question. It's very simple. I think you think you got it. It's just the new caught in leit when you explain changes in shift in agdemand with like the ads as diagram as a whole of macro, which is a big part of macro, right? It's not just saying okay at 80 shifts outlet like at why and why how so how does a decrease in the tax rate, let's say, okay, shift our rate demand? You're saying through consumption, it increases consumption and hence it increases ad rate. But how why does c go up? Why does consumption go up? Conmption goes up because. Very. Because there's like a decrease in price levels or technology or like there's like increase in productivity. That's when the price, that's when the consumption goes up. Think of tax. It's tax. So basically, my question is as simple as just how why does a decrease in the tax raise increase consumption? That's it. Can you explain that? It's it's extremely obvious. I think maybe it's too obvious and that's why you're struggling a little bit. But deep question. It's okay. Wait. A decrease in tax will lead to lower price and lower price or lead to higher consumption because lower lower tax means like production can be more efficient because there's no like you know there's no control. I mean, there's no like taxation. So they can spend more money on producing on this. Little wouldn't be more output. And more output means cheaper price, and cheaper price means and more consumption. Like I think you're mixing in a few concepts here. I think I'll keep it way more simple and thatkeep it unlimited to income tax to ket. So this is the following explanation is the one I think it's easiest to get if the tax rate goes down and let's say it's income tax rate, let's kind of assume it. We can obviously, this can be done in many different ways, right? The government, Rory, doesn't just say, Oh, let's decrease taxes across the board rate. It's not all of them go down or up or stay the same. Maybe it's just one. But let's say, okay, as tax goes down and let's say it's income tax, people have more disposable income right after tax money goes up, right? So if you make 100000 pounds a year or in London and the tax rate goes down, you get to keep instead of, let's say, 65000 of the 100000, you get to keep 70 out of the 100 rate. So it's not just everything is cheaper, so I buy more or the this is very confusing. It's it's tough to say what do you substitute away and to buy other goods just if you have more so lower tax, more dispossable income and have more consumption, that's it. Keep it to income tax. Don't worry so much about vat. So I think what you're trying to refer to, I think Rory, is if vat, which is the tax we will pay on like goods we buy in the supermarket, if it goes down, can we buy more goods? Yeah, assume so. I would assume so actually. But the best thing is to just have more disposable income, okay? More money to spend through income tax, right? Think of income tax. Yeah. Or if you want to keep your explanation, I would say, Yeah if tax goes down, v and ual, referring to vat in your explanation, consumers can combine more goods, right? Yeah spend more actually on consumption because it's not just spent weight in tax. But then when you mentioned in productivity, you think you mentioned later, right, or about productivity going up or something, I am not too sure that's very relevant. So I just keep it to why can you spend more? Why can you spend more on consumer goods? Why spend more on consumer goods? Basically because you have more disposable link. Do you see that this is this is very important. Do you see that, Rory? So if you make 100k is in like free tax, okay. Let's say you face the 30% average tax average income tax rates. By the way, it's not like a fixed percentage, but let's assume it's like the average. Follow the percentage you pay of the total. You make 70k. Boost tax income rate, and we can call this disposable income. You see what I'm doing here, ruyeah? Now, I wouldn't say it's an equal equal to disposable income, because for disposable income, there's other things to be put into kind of consideration. But we can say that tax income is more or less disposable income. So look, if if it goes from 30% and then it's 20%, I now have 80k because something goes up by pancake, right? Rory? Yeah. Where does the ten k come from? The ten k comes from obviously your. No, wait, where does the take home from there? I did this to test if you kind of following, it's just, I think I'm not sure, but I just think my impression, I think I really wanted to concentrate again. So what I did, and maybe I did it a bit mischievously to see, but what I did was, Yeah, but I, there's no time. There's no time. Tthough, well, I did it to see if you were looking okay. I was doing 30%, right? And this was originally seven years available, able, right? And then what I said is a case, the tax rate goes down to 20, this becomes 80. So the difference between 80 and 70 is ten, right? So your income, disposable income, goes up by ten, which is not the same as consumption or trying to do that also to see if you were kind of following. But fair enough it is. It can potentially spend all longer consumption at tket. Do you see that I need to be following really? It's just very hard for me to gauge this at the moment. Again, okay, can you try make an effort roory please? Yeah, I am I am okay, okay, okay, okay, okay. It's just like I the teacher didn't the previous ones like didn't teach me the world. I have to learn from the start because I my economonly A C right now just like I don't want to get A C enna. Okay, okay, no like but my issue never the academics, okay, my issue will never be not understanding a concept of it and this is this is also just my perception, okay? But my perception is that I think you are able it's just I'm am not sure if the you are following isn't in terms of what you can put in right? I'm not just not sure partly because of the camera issue, but partly and here there was a bit of a trick to see if you were following, but that's not really the point. But I just want you to if you have any questions, just tell me, okay? We can go as slow as fast as you want. It's just I want to feel that you are trying, okay? That's the most important thing for me, okay? Understanding the Econ that second okay. So we go from 30% and 70k post tax income to 20% income tax because it's gone now back from 30 to 20 as a government expansionary fiscal policy and now have 80k to play yer with ten more than before ring. What can you do? So let me write this down and. Have gone from 70k pounds okay to 80k right. Yeah. So this what this is what's happened. We've gone from 70000 pounds disposable income to 80000 pounds. What can we do with this difference? With this ten k roaring? What can a consumer do? What are the two things a consumer can do with this ten k difference? New thing. So if you make money, what can you do with the money? Basically what are the two options? You heard a lot new things. Oh Yeah. But been terms of not so much about what youwant to spend on, but you're going to spend, consume or save, right? Consumption or salyeah two choices, two things, right? Crazy. Oh Yeah. Consumption consumption or savings. Okay, or savings. Yeah consumption will go up, right? I mean, as a long Rory, as the person does not say all of it. Consumption will go up. It doesn't have to go by ten. The consumption goes up from anything from zero to ten, okay? Do you see that this is very important, right? So we don't know how much consumption will go up by maybe they save part of it, but they won't save for all of it, right? Okay, not fair enough. Okay. So this is basically fiscal policy expansioning fiscal policy, okay? Through tax, government spending is very obvious, right, Rory? It's just g on a simple level, okay? Okay, so government spending. It's through g. Okay, let's say it affects. And we've got fiscal policy effects ad through c and there's another one, rura. Which other letter or variable do you think is affected? Hmm. Which one, sir attack tathe tax is not a letter than ed ring. It is, let's say, in the formula with one session formula. I need to find it again. Right, right. Sorry, it should have been investment. Okay, why investment? Old government governspending I mean try fiscal policy. Why do I put fiscal policy? Tax effects. So both fiscal right governments and tax common spending and taxation. But we were saying, okay, through consumption, which is that correct? Tax is not a variable in anything, okay? Big t is not a variable in ad, okay? Just it's not a variable. It's not even there. Okay? It's it is investment I big I big I capital I okay. But why you explain the intuition to get it very simple to follow the same reasoning. Thiri this I mean, like is it like the relationship in tax and investment? Because like if there's a lot of investment, I mean, if there's a lot of tax and investment will build down, but there's like a lot of if they're like tax got cut off, then investment will go up because people will start investing money because obviously there's less like there's less tax. So people have like there's only more money to spend. You're explaining that the link, bill, you're not making any lecture saying, okay, obviously. Do you think I'm paraphrasing it? Obviously it affects investment because this investment goes down therebe more incentives to best. If tax goes down, itbe more attentive to this. Yeah. But why? Why? I'm asking why the reason, the intuition. Because when the investment goes upward, I mean when the tax goes down, it's chains of it's chain of reason though in if the tax goes down that means they are the government takes less money from you and you will have more actual wage or salary and more actual wage and salary means you will have more money to invest here. Gave you gave a bit of more so because but I think we said, I understand why it's a bit frustrating because and here o, you did give more, but here ri, I think it's important to remember who invests in an economy according to economics, say, level. Who's the one that invests? Which agent? This is a consumer maybe used to be government terms, actually a government company or companies actually. Okay. Investment is companies again. So firms in Econ a level and Econ a level framework. Indeed, an Econ investment is not stock market investment. Again, there's only classes like you can best I can invest in. Firms invest and they invest in machinery, improving their business, buying manufacturing. That's that's the investment that we care about as economists at this Ecola level here. So you're saying lower tax effects investment, business investment. Okay, so let me let's be very precisive. Lower tax stimulates, you can pull this, put this bracket because it is always firm, firm, right? Lower tax stimulates firm investment. Okay. Why can you be very precise in equal? If your explanation is too long, it's usually signals that you're not on the right track. Ks, okay, so keep it very simple. Why does lower tax stimulate firm or company investment? Why. Hey, it's spwhy. Why? Why, why investment? Yeah. Like can you explain why? I want you to explain why. So look, affirm, right? How is a load tax? How does load tax affect their ability to want to buy a new machine? Well, definitely be more about say, okay, yeyep go because lower tax means you get actual more actual income, like the domof net profit, actual profit, basically a profit will most likely through your income, like if there's that less less tax collected by the government and that means there's going to be more money for the companies to spend on investment. Exactly. So this is one way of explaining it, right? The company has revenue, right? And then you have to subtract costs, right? So revenue is a positive thing. You want revenue, then you want you have to say you have some costs as a business by nature, having to pay people raw materials et cec, and then you're left with what we can call it ptax profit rate. And then you go mines tax, okay, equals profit, right? What we call the income statement. This is like a very basic accounting or racism simplified again. So if tax goes up or down in this case, so if everything stays constant, right, revenue costs free tax profit, hence, right? The tax goes down. What happens to profit? It's a very simple room happens. The prophet goes up, goes exactly right, goes up. Everything is constant except this goes down. You can see my diagram, right? What? My little like table, right? Yeah, you can see it on your screen. Ryeah, okay, okay, okay, cool. So profit goes up. If you have more money, is it left over? You have more money to spend on machinery, as you said, on buying new stuff, taking risks. This is a great rate. Also another thing we could say, although this is the explanation you should give and to keep it simple, it should just it's also if you invest, Rory, you want to make a return, okay? So a company that buys a machine, okay, in a factory to put into that factory, sorry, wants to make a return, right? Yeah they want the machine to actually do something to give them to almost like make that money back, make the investment back, right? So look, if this machine is saving two salaries, if I don't have to employ two people, hopefully I can cover the cost of the machine by not having to pay for these two workers over the next x months or years. So basically, a machine is generating money, if you think about it like this, investment generates money, right? Buying a new Tory and setting a new Tory is generating money for the company into the future, right? So there's less tax cks. It's just incentivizing firms to invest because theybe able to keep more of the future money really comes in. Do you see that? It's basically the same thing as the other words you said, which is probably the best one to say, instead of saying, look, you have more money to spend now because taxhas gone down, it's kind of into the future saying you'll have more money in the future to spend because tax will be lower, right? Or you have more money, you'll make more money back in the future because you'll be a taxed less. Okay, good. So this is fiscal policy. It's very simple roaring. It all comes down at the end of the day and you conate to the same equation, c plus I plus g plus x minus x. Well, I was going to try and do monetary policy today, but let's do supply side. Okay? It might be best to do supply site for the rest of the list. Okay. So what are supply side policies roaring? Not very. Don't have already. What are, what's your, what's your understanding? What does it say in the name supply side policy side is it's related to supply, okay? It relates to governments as well because there's a policy. Okay, Yeah. So basically how darand design, what is like how how do affect the supply? Yeah, Yeah, Yeah, Yeah. And then can you give me an example any kind of any other any other stuff you might know or kind of the rings of bell? That's why we're going through it. I can't give you example, you know, but it's good. I'm just asking for some, is there anything else? That's why if it's not okay. Okay. So this is what you know, right? Supply side something two with the government any any examples maybe like a supply side policy you refer to government and supply. What can the government do? Any any specific example? What can the government spend money on that accounts as, let's say, a supply sign policy? I spent 20. I don't know a lot of things like honyoung infrastructure that nhs, health healthcare system, education system, etc. Pretty good. Yeah these are not random spendings. This is spending the U for that has a commonality. These these different types of spending around health care infrastructure. So you clearly know what supply side policies are. Supply side policies are it's not just any rant of spending. It's not spending more on an unemployment benefit again, it's basically to increase productivity and increase the productive capacity of the economy rate. Yeah. But anything that shifts out the argate supply covering, do you see that? So anything like you know, we talked about ad a lot, okay, fiscal policy is trying to stimulate ad, right? Supply side. On the other hand, it's the supply curve. The as curlet's give it just ada as as shift out, add a supply side policy rate. If we have ad to be constant, don't worry. What happens to output thanks to going from as to as one, what happens to output? Output increases. Yeah, exactly right. So it doesn't just have to be ad that you know comes to save save the day. We can also have an increase in output. We call big y on the x axis, right? We can just show this shows it quite clearly, right? But e, you can call this E1 goes out, right? Goes up, sorry, right from let's say call this point whatever, let's call this y and why again? Yeah, okay. So supply side policies can also increase output on GDP. So you mentioned the few, right? You mentioned education spending on education. Can you specify a little bit more rlike? What would you spend on maybe at the moment in terms of in education if you were the government in the uk? I knew, Hey, I would say probably healthcare systems because it's very it doesn't have a lot of people that sort. I mean, like it's so this is like a shortage in everything in nhs. So we need to spend more money on nhs. You can. But in terms of so there's certain ideological things and there's certain economic things. So that's think of again, so the nhs, we should spend more off shortages. It's fine in the icon. When we think about supply sign policies in this case and want to back up our answer rate, supply side policies are trying to stimulate the economy rate. It's not just a question of equality or ideals, right? It's a question of we're saying, okay, more spending on health thcare leads to better and bigger economy to economic growth, okay? How can we can you link this? I agree, right? There's lots of shortages in the nature. I mean, I completely agree with with this. And I'm not saying it's all ideological. It also has an economic impact. How does more spending on the nhs increase economic growth? Can you make that link? Rory, can you think about that for a say? So more spending on the nhs, how does that stimulate the economy? Basically ruling? That's my question. He's like talk me through this like again, because I have, but it's it's just to get so more spending on health thcare. Okay, Yeah. Leads to do you think it's justified to spend more on health thcare? Basically, you're saying in terms of shortajudgement or wait times and waiting lists, this is I mean, I agree. We all agree with it. Everyone will always agree with it, right? In spending on health care is also going to generate some benefit. It doesn't even have to be for the economy will generate a better outcome for someone. And that's fantastic, especially if it's to do with their health care. I mean, with their health. Sorry, fantastic, right? But here we're trying to make the link to the economy. Rural, most spending on healthcare leads to a shift in air. Air. Second, supply side policy railroaring supply side policy health thcare is a supply side policy rate. You agree, Rory, that health thcare is a supply side policy rate? Yeah, I agree that. Okay. And that's what he said, right? So more spending on health care leads to shift in as because it's a supply side policy, right? Because it's shifting out as. Which leads to output going up, which we demonstrated right in the diagram, rate y to y one. Yeah. Yeah, okay. Why? Why does it increase output? That's my question. To the intuition, why does small spending on health care and the impact of that actually affect our economy? Because spin health care in like more spanning health care means more employees and more efficient patient can be treated more efficiently than before. That that means there's more the supplies will be more because there will be more employees and there will be more people working in the ahs that leads you a shift in agrilar suppto rise. Okay. So you're saying this stimulates the what I mean just through spending, okay, this this is also the case, but that would be just more fiscal policy, okay? What supply side policies are really worth thinking about? The ppf of the country, the productive capacity of the productivity rule? What happens to productivity if people are. 啊。Producservice is it increases surely, right? People I'm spending less at home ill right? Yeah. And also when they work, they work better and harder. And also we think of not just productivity but number of resources. That's like the feel the ppf rate. It's not just how good the resources are, but how how many resources there are and the people there are. For example, people are going to live longer and they're going to be able to contribute to the economy for longer, right? That's it. So what I'm saying is fiscal policy is just about throwing money out there, okay? It doesn't really matter. It's just stimulation, right? Rory? So Yeah, supply sound policies have a slightly different purpose. Yeah, I'm sure spending on hospitals, it's just going to stitimate ad is well, right? So you're building the hospitals, for example, right? You're hiring the construction worker. He will now have more money to spend, right? Yeah, I agree. But think of it in terms of the supply side of caory. Okay, education. You mentioned education. Can you explain that the same thing for education? Education, education. So you must spend more money on education. There will be more, better textbooks and better infrastructure, classrooms, classrooms provider, and there will be more employees, which means that there's more people working in school. And that ships the supply curves the right, because there's more supplies. Everything aspects you're making same the same mistake you're saying it. You're referring to like ad you're kind of saying about stimulus, which is ad aggresupply, but you're just thinking, okay, you spend more on, let's say, teachers. You have more, you need more resources. That's stimulation. Think of it in terms of education. What does education bring? Think of that from the education stpoint, not from the spending. Nature brings knowledge to the children, right? And why is that good for the economy? Because they could, okay? People will be more educated and they could work in the higher and like higher ticompanies. There's up more and therebe more like you know knowledge therebe, more improvements in technology in terms of technology whereconomics because they're are more eductricate people Yeah and that at least as the star. Yes, basically, the more educated labor our force, it's just more productive. And a lot of these explanations really are obvious, but we just have to kind of give the kind of more of the textbook kind of play, right? Because it makes the textbook kind of intuition if people are more educated and more productive, right? We can argue if this is really the case even but they they tend to do more better things, get more out of what they do, right? That makes sense. The more productive. Yeah more education, more productive. Cool. Well, that's really it. Okay. Obviously more education, a better educated laforce can attract foreign direct investment and a lot of things. Again, I'm sure the Chinese labor, our force roit was always being even back 50, 40 years ago when the country opened up. I mean, I think the Chinese labor force was always very attractive for foreign companies, right, to set up in China. So a more of an educated labor force is fantastic to be the pioneer, for example, with Chinese in terms of tech now to having people to enough people to be able to employ in more simple manufacturing. It's not just high tech education, high technology. It's all kinds of different knowledge. If everyone improves that knowledge, this is good for your economy. Everyone becomes more productive. And we can just keep there at this basic level, right? This is kind of enough to explain my point. Okay? Education, health, thcare, infrastructure. What about infrastructure? Same for infrastructure. Can you do the same thing, Louis? Yeah, I can take different. So it's just the same. What's the link? So that middle step that we did for education, for the health care. For infrastructure. The same middle steps. So why does more spending on infrastructure give us anything that in the same regard as spending on education and productivity, let me try once. So basically more infrastructure, more money spend infrastructure, a better transportation and shorter communities commuting time in terms of public transport or high way maintenance or basically anything. And that being that means like the infrastructure being built are used properly and people coming mute to faster and more efficient ency work and going back to home. And that gives people maybe a slightly longer working hours because people at more efficient working hours and which can improve general, the country's productivity in general, and that gives a riworse shift in average supply. Fantastic. That's it. Like it's always the same thing, right? The just playing the game, right? As you can see, it's just the same thing all the time. Just applying it to the context of it's if it's a bridge, if it's a school or if it's the hospital, right, it's the same thing. It's a bit ridiculous. It's productivity is like it's a bit for gzy figzi, right? Or it's a bit like not tlike. What does this actually mean? Like okay, more education, but be little more educator. Have a degree now, but how does why does the economy care if I have a degree or not? I stuff to find the job but like it will with infrastructure like is the country even ready for high speed rail for this extra road or brutes? But it's just the same thing unfortunately, ately for us in a level Econ, it's just productivity grip things become becomes more of a well oiled machine. These just classic supply so policies probably the biggest three especially education and infrastructure. Okay, there's two main types of supply side policies are already Yeah so these three are all within one of the two again. So we've got interventionist. Supply side policies. And then we've got free market supply side policies again. So intervention is supply side policies. Think of it as money spent. Okay? So it's literally the government going out spending money. So in terms of education and infrastructure and aljust a question of spending money, they are spending a lot of money to build stuff. Think of it like this. Free market supply side policies are not obviously, I'm sure there's money involved, but it's not so obvious where the amount of money that's being used here. Think of it like this. Let me give you some example. Decreasing the minimum wage again. Yeah decrease in the minimum age decreasase in red tape. Okay. So do you know what red tape is? So bureaucracy, the term bureaucracy. Yeah. So bureaucracy is just like adamant, right? So I mean, I know a little bit about Chinese adamant and Chinese like public, like government adamin can sometimes be a bit inefficient. It's a little of bit old school to some extent. It's changing a lot. But or in Spain and Spain where I'm from in Europe has it. It's quite famous for being a fan of stamps and having to do a lot of adamant even as a person if you become an have to, you have to physically go somewhere to get stamped or any kind open up a business. It takes a long a time. This just big delays in adamant processes again. Yeah. Does this make sense? Again, just in general, the government sometimes can be quite inefficient. Well, government in terms of its interaction with us, if we want to set a business right, or we want to pay our taxes, or we want to do this without buy a house, sometimes these processes can take a long time. Okay? Because of erbureaucracy, we call this bureaucracy. What about? So these are free market supply side policies. We try to target red tape. Decreased red tape is A A simplification. Red boobasically try to reduce red tape here. Another free market supply side policy will try to decrease the minimum wage. A decreased trade union imporwill make labor markets more flexible. So why is it called free market supply side policy? What it's called a free market is it's trying to make the economy, let's say. So trying to make it run more efficiently, okay? So intervention, supply side policies, the ones we mentioned, education, health care and infrastructure spending. It's an interventionist intervening spending. Think of it like this, like a memoristically railroad, intervention ist big intervention, spending money building big hospitals, big roads, big projects. Again, free market is about changing the incentives, okay, and the rules of the game, okay? So just making a trend to make the economy run more efficient by decreasing the minimum wage, decreasing bureaucracy or red tape, decreasing the importance of trade unions, right? Why are trade unions bad for productivity? Do you think Rory three new day is bad? Because they have they've got some insolted rules that you have to follow which decreases the productivity trade unilimits like how much you import exporand how much you produce and that definitely limits your profit. Makes some okay. So okay, but what trading protect workers, right? Yeah and what do trade unions? How are trade unions able to protect workers? What kind of power can they exert? What kind of pressure can they exert? For example, they limit like how how many hours do you work? And obviously, if you work Calder, that means the productivity is higher. But to the trade union limits like to like seven hours, eight hours. So it will be less productive. And Yeah and theyalso care about like shift. So like you can't really can't work at night and stuff, you know and sometimes that decreases like the amount of hours or even the we can, this is not so much productivity, but we can trying to force our point. We can say, yes, it is productivity. People are not able to work, let's say, one unit of labis not able to work as much. And that I guess we can kind of bring to productivity. So people don't can't work as much as they would, lito, even even they want to work more than not allowed to by the trade union. That's so that somehow is trying to protect everyone. And also, Yeah, they can generate whether they can organize strikes, right? Ory, Yeah. Why is it straight bad for productivity? So what does a company strike? Obviously they wish to exploit more about the comp's track is just when you doing work, right? So a strike is legal in the uk and the western world, right? Sometimes people like workers organize themselves. They don't come into work until they get where they they try to exert that power to get more fair working conditions. Well, they perceive to be fair, it's not productivity right now. Yeah, that's product does be it is impacted by a lot of things. But Yeah, this I think trade unions like one of the most like impthings. So I mean, so Yeah, I think trade unions are less important now than 50 years ago in most countries. But Yeah, the family potry has got their own like they do care about their people right now. Can I just say one thing, how will that finish? Right now? I guess I need to go a toilet, but we can do a long lesson. Just see you came a bit later to this. So like can you do like maybe five extra minutes the next time we meet? Okay, we can let's Yeah let's just our next lesons on Sunday, right? Let's need to get on Sunday then and fair enough. Okay, just try to for supply side policies rule ory it's very simple. Just infrastructure, okay, education, health care, these are all examples of intervention of supply such intervention, money spending, spending money intervention. Intervenon the other hand, we have free market supply side policies. The word three, think of it in terms of just trying to make the link the market economy more flexible, more free in this way, increasing incentives, allowing incentives. And these are just some examples, as many others, minimum wage going down, trying to reduce red tape, make labor our markets more flexible. We'll discuss what I mean by that next time. Or decreasase trade union and importance. Okay, see you on Sunday rthen, okay, bye bye bye bye.