How to alleviate unemployment via fiscal policies

... How can a government use fiscal policy to alleviate mass unemployment? Are there any problems in using this policy? Explain using economic theory and examples from any country. There are many ways in which a government can utilise fiscal policy in order to alleviate mass unemployment. 'Loose' fiscal policy (an increase in public spending and decrease in taxes) will certainly alleviate unemployment, at least temporarily. The increase in spending could be used to fund areas of public services, such as the NHS and Police in order to expand them and thus create more jobs, or could be used across the board to increase wages and therefore entice people into employment. And the lower taxes would induce the population to spend more, thus increasing demand on many goods thus needing more supply and thus more jobs. Alternatively, a 'tight' fiscal policy can have an equal effect in that unemployment will be reduced.

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