Economy Of The 1970: A Case Study

In dealing with the economic depression of the 1930s, it is my opinion that the recovery of Britain was mainly due to the stages of rearmament in the run-up to the Second World War. This is not to say, however, that the National Government failed to combat the rises in unemployment, reaching a peak of three million, and the ruined staple industries, they implemented several policies to reboot the economy and lessen the impact on the people.

In the views of the politicians, the economy was not one of a ‘Golden Age’. As the British Cabinet Paper wrote, ‘It is clear that ever since the end of the war we have tried to do too much…we have only rarely been free from danger of economic crisis’. This illustrates the fact that although the economy was not falling apart, it was not stable and not prosperous. There was also a lack of a plan to deal with the economy; the government merely adjusted the system as it went along, which sometimes resulted in high rises of inflation or sudden consumer booms that did not correlate with its ability to pay for them – causing a deficit.

Consequently, Keynes brought clarity to the subject of the Great Depression and unemployment, his argument suggested that unemployment may not be a temporary condition that the system could naturally recover. Keynes believed that unemployment could in fact reach equilibrium. In this article the Depression was seen as a condition of unemployment brought about a

In 1982, investments and banks failed leading in a recession; the worst recession since the 1930’s during the Great Depression. Unemployment skyrocketed to 11 percent as compared to the usual unemployment rate which is normally 8 percent or under. Fortunately enough, a fall in oil prices prevented the double-digit inflation rate similar to that of the late 1970’s by lowering it to 4 percent. The policies of ‘Reaganomics’, mainly centered around cutting government spending and tax cuts, are what improved and

Browne, K. (2008) Sociology for AS AQA 3rd Edition, Cambridge, Polity Press, pg 176/ 172/ 177

This was not as bad as it seemed though because the cost of living had been reduced by 13%. Britain emerged from depression largely from outside factors other than the government but the government did have an effect. Chamberlain even introduced the Unemployment Act of 1934 which meant insurance benefits could apply for a maximum of 26 weeks. Although the Conservatives did help and make some changes, it was not enough and they did not look to the future as much as the Labour party.

In the late 20th century, Australia?s indigenous peoples were 29 times more likely to be put in jail than other Australians; 20 times more likely to be picked up by the police; less likely to receive bail or have legal representation in the court; and more likely to plead guilty. At the same time, indigenous peoples were less likely to be called up for jury duty than other Australians. The Aboriginal Legal Service (1970-97) provided access to legal advice and assistance for people who could not have otherwise afforded it, but it could do little to overcome injustices indigenous Australians suffered under the Australian legal system.

When Reagan became president he started out in a recession. 11 percent of the work force was unemployed in fall, 1982. This recession reduced inflation significantly, but the interest rates remained high. During the next two years the economic recovery began. The unemployment came down, but thousands of factory jobs disappeared. The new jobs, which were mostly in service industries, paid less, leaving inflation low.

When Reagan became president he started out in a recession. 11 percent of the work force was unemployed in fall, 1982. This recession reduced inflation significantly, but the interest rates remained high. During the next two years the economic recovery began. The unemployment came down, but thousands of factory jobs disappeared. The new jobs, which were mostly in service industries, paid less, leaving inflation low.

Because the governments’ prevailing economic theory was based on laissez-faire economics, the government believed that recessions were self-correcting. Eventually unemployment and inflation stopped declining, but not before the U.S. lost 1/3 of it’s output and 25% of the workforce was unemployed.

It remains it a prolonged economic crisis but has no active completion internationally since the fall of the berlin wall. While Marxism is seeing a renewed interest by society. The media and other spheres of culture speak of Marxism as not being a viable alternative but a source for examining the wrongs of capitalism through the analysis of Marx and by this synthesis a desirable form of capitalism can be formed. This idea, is a form of concession, the admittance of an error of the international markets in lieu of making any systematic criticisms. These arguments get an echo in society where people call for the jailing of bankers and a regulation of the markets but don’t ask any serious questions that trouble the establishment. Marxists economists like the late Andrew Glyn argue that the recession was a result of an unsolved crisis of capitalism from the 1970s where profitability declined and capital had to be shifted from industry to finance. The way capitalism sought to recover was to introduce neo-liberal policies which inflicted savage austerity cuts on labour in a move to squeeze more profitability from workers. While in crises again the problem of the tendency of the rate of profit wasn’t dealt with and with the markets failing, austerity measure had to be reintroduced. This analysis of the economic crisis tells us we are facing a future of shorter booms and much longer recessions and that capitalism is fundamentally incapable of

The interwar depression witnessed the emergence of mass unemployment. Scotland’s recession was deeper and more sustained than in England, resulting in higher levels of unemployment and a social crisis. Notably, unemployment levels varied across industries, regions and demographic groups. Unemployment rates were twice as high for men than they were for women, males aged between 55-59 and 18-24 experienced higher rates

The “Great Recession” is commonly used to explain the massive economic contraction that occurred in the United States during the fourth quarter of 2007. However, the actions of the United States spanned to other nations, leaving massive effect on the global economy. One nation that took on serious financial burden during this recession was the United Kingdom. This nation first faced the effects of the Great Recession beginning in the first quarter of 2008. Overall, the initial mass effects on the nation can be attributed to the nation’s reliance on the financial sector. In fact, after partially stabilizing in 2009, the country struggled with a double-dip recession between 2010-12, and continues to struggle with some of these effects.

Since the global financial crisis of 2008, the UK government has been implementing various policies to combat the recession and stimulate economic growth. This essay will look at how effective the fiscal and monetary policies used since the crisis are in achieving the four-macro economic objectives. In addition, I will provide my input on the best way the UK government can carry out these policies.

The economic reforms initiated by Prime Minister Margret Thatcher since 1980’s has made the United Kingdom record steady economic growth in the 1990s. However, successive Labour governments increased government spending significantly. Since 2010, the government upheld austerity as the principal of its economic policy. In 2014, the country recorded its strongest economic growth since 2007 of 2.387 trillion dollars with GDP per capita at 39,350.64 dollars. The GDP increased significantly because of the enhanced performance of the construction, manufacturing, and services sectors. Retail sales also increased with unemployment relatively at lowest