POLI 1P93 Lecture Notes - Lecture 8: Homo Economicus, Offshoring, Deindustrialization
18 Sep 2016
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Neoliberalism in canada: keynesian era 1945-1975 truly ends 1984 (post trudeau, government concerned with full employment, generous welfare state, active economic management by governments. The price of every consumer good went up. Therefore, the value of the dollar went down: vietnam war; government had to spend a bunch of money to fund the war, increasing wages, too much money chasing too few goods , inflation became to enemy. Inflation: increases in prices, decreases in purchasing power, essentially a decrease in monetary worth, more money in the system, the less its worth, higher wages put more money in the system, so did government borrowing. Decreased wages for average workers (due to employment) Prices go up as ability to purchase decreases. Give up attempts to create full employment. Decrease the amount of government spending by limiting borrowing power. Decrease the size of scope of governments: enter neo-liberalism.
