POLI 1P93 Lecture 6: POLI LEC notes
19 Mar 2016
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Document Summary
A focus on goods and services distributed through the laws of supply and demand. Assumes people have preferences (things they want) Market is made up of rational individuals. Thought that an unfettered system will maximize yield/utility. Only option residual welfare state competitive austerity (race to the bottom) Globalization is a response to neo-liberalism at the national level. Reduced or removed impediments to market forces. Leads to other priorities cutting taxes, shrinking government, balancing budget, etc. Leads to a smaller role of the state in crucial, and expensive, areas. Gross domestic product gdp (not on exam better understanding) Total value of all goods and services produced in a country in a given period. Important as a standard measure of economic capacity and performance. Through 1990s 2/3rds of balanced budget came from spending cuts. Reduced spending to gdp ration to 11. 3% Not the only option, revenue options also possible. Program spending continued to fall (as a % of gdp) from 1980 2005.
