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Economics IGCSEPDF 84
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○ An: If the environment is not sustained, the economic base itself will eventually
collapse, making long-term unemployment irrelevant.
○ An: Environmental policies (e.g., investing in green energy) can create new jobs
in the long run, transitioning the economy towards sustainability.
P2: Arguments for Low Unemployment Priority
○ K: High unemployment causes immediate and severe costs, including lost output,
poverty, social unrest, and high government debt from welfare payments.
○ An: Governments are judged in the short run; people facing job loss will prioritise
immediate income over abstract future environmental benefits.
○ An: Some argue that only wealthy countries with low unemployment can afford to
invest heavily in expensive environmental clean-up and R&D.
EVALUATION:
○ The priority depends on the time horizon. In the short term (e.g., during a
recession), unemployment is the immediate crisis. However, in the long term,
sustainability must take priority because it protects the resource base
necessary for all future economic activity and employment.
4.3 Fiscal Policy