England_2 - Britain: Political Economy 1. Define Collective...

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Britain: Political Economy 1. Define Collective Consensus. Departure from Britain’s economic history? Britain’s economic history different than other countries? Collective Consensus : expanded economic management, welfare position (Keynesian welfare state), economic management and social policy o Mainly broad policy instruments, macro economic policy: by adjusting state revenues and expenditures o Consensus Era 1945- 1979, Thatcherite Policy Orientation= 1979-1997 Difference: France and Germany joined together, Britain kept other countries at arm’s length o Britain’s growth rates were slower, Economic History- is collective consensus a change?- seems to be a dramatic change from Industrial Revolution times but fairly constant after WWII o First industrial nation and long experience of economic decline. Britain fueled expansion based on foreign supply of raw materials and foreign markets from the 18 th century onward Entrepreneurs were complacent about keeping up with newest industrial techniques and investing in machinery at home Government felt secure in the advantages of empire and priority of international trade over domestic demand= belief in free trade in international realm and hands- off approach at home This lack of investment in modernization of industrial plants and to boost efficiency= Britain lagged behind in technological innovation, investment in domestic manufacturing and scale of production facilities o 1890s- British exports and industry collapsing and falling behind other countries in production of goods (steel) o 1976- IMF bailout for Britain; “sick man of Europe” o 1980s and 90s- Britain grows with the rest of G7 2. Post- war record in collapse of Collective Consensus Post WWII, all devastated and wanted to work together/ sense of unity, need to rebuild war-ravaged country: crystallized collective consensus o Budget deficits used to expand demand to boost consumption and investment in slow economy, cuts in government spending and tightening credit/finance o Britain state broadened and deepened responsibility for performance of economy and wellbeing of its citizens o State nationalized some key industries- had direct ownership of them
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o Policy of full employment: state accepted responsibility to secure low levels of unemployment o Expanded social services, maintain steady rate of growth, keep prices stable, and achieve desirable balance-of-payments and exchange rates- Keynesianism Before Thatcher leader of Conservative Party in 1975, Conservative leaders accepted terms of collectivist consensus Britain’s post war economic record- very poor compared to others: Brit’s open to change from collective consensus 3. Thatcher’s policies: successes, why? How did Thatcher’s policies influence Blair? -
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England_2 - Britain: Political Economy 1. Define Collective...

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