politics jan 14- readings chap 13 - 4 basic pillars 1 Post...

This preview shows page 1 - 2 out of 2 pages.

4 basic pillars 1) Post war settlement between capital ( business interest) and labour supported the golden age of capitalism, meaning that from 1945 to the early 1970s situation where there was low unemployment, low inflation, and rising rates, productivity growth, rising levels of real wages There was a commitment to Keynesianism on the part of states in all of the advanced capitalist economies Keynesianism was concerned with the state managing aggravated demands in the economy so that full employment levels were maintained With the ascendency of Keynesian economics the assumption was that the state could counteract any movements in the direction of either recession or inflation So the thinking was if the economy was starting to go into a recession; output is starting to contract in the economy, spending is going down , people are being laid off, business are not investing like in the past, then the state systematically increase spending and will have deficit spending,

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture