The topic being researched combines politics and the economy, encompassing what underpins the basis of today’s society. The ultimate aim of the project was to explore the relationship between the economy and the size and priorities of the UK Government, in particular the impact of recessions. This was decided on after the first few weeks of research as it gave the project a particular focus regarding the reference to the economy. This was a particularly relevant project title at the time of brain storming (November 2014) as the election of May 2015 was looming. This ensured it was a relevant project to be conducting. The subjects of politics and economics were not studied as part of a curriculum at sixth form so it allowed a full and opened …show more content…
It also states how the government made an attempt to lessen the effects of inflation and mass unemployment by limiting wages and increasing interest rates. Subsequently, this led to unrest in the form of strikes. There is a general consensus on the effects of recessions, both past recessions and the one endured in 2010; this includes the vast increase in employment. The problems regarding the economy did not end there as stated by a website article, The Thatcher Years in Statistics (2013), following the rise of inflation to 20% by 1973 issues such as rising unemployment rates which was only reduced by an economic boom later in the 1980s. This allows the assumption to be made, which is also consistent with the current economic climate of today, that the issue of unemployment can only be fully remedied during a time of economic prosperity. Thus, allowing more job opportunities to arise without lots of public finance being spent to purposefully bring about the presence of the jobs. However, there is a key difference between the recession that occurred in the 1970s as indicated by, The Economy of the 1970s (2010), and that is that before the economic downturn of a recession there were years of economic prosperity leading up to it known as the “Barber Boom 1970-73”. Although this caused “tax cuts”, which would have provided a direct and short term benefit for the consumer; it also paved the way for inflation, this hit over 20% by 1973. This was a theme absent from the lead up to the 2010 recession. The evidence of the implications of the recession that occurred in the 1970s is strengthened significantly by, UK recession: Life in Britain in 1980 (2009), this states that even in the 1980s Britain was still feeling the harsh effects of the recession, for example unemployment had reached “5.8 per cent or 1.56 million”. At the time, Britain’s prime minister
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 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
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.
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 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.
Evidence of this period can be seen from the dramatic increase in GDP from 15.7 percent to 26.4 percent between 1920 and 1950 then reaching 46.5 percent in 1984 (Course-reader 26: Banting 1986b:2; Bakker 1990:429, Table 2.1 ). There was a general fear that if the economy would land in another economic crisis if reforms were not made. Even capitalist supporters believed that market could simply not survive without some degree of state intervention and regulation (Course-reader 24:Savage and Robins 1982: ix). The fall of the Keynesian (the Keynesian crisis) era was instigated by the inflation caused by the 1973 Arab oil embargo and the subsequent increase in oil prices by the Organization of Petroleum Exporting Countries (OPEC). This fall in the Keynesian era was accompanied with capital flight, decline in profits and De-industrialization in the economy.
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.
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 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
Browne, K. (2008) Sociology for AS AQA 3rd Edition, Cambridge, Polity Press, pg 176/ 172/ 177
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.
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.
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