Class Notes (838,691)
Canada (511,049)
History (1,328)
HIST 253 (12)
Tim Smith (12)
Lecture 5

History 240 Notes Week 5.doc

4 Pages
73 Views
Unlock Document

Department
History
Course
HIST 253
Professor
Tim Smith
Semester
Fall

Description
History 240 Week 5 Notes The People’s Peace State Economic Planning, Welfare State Expansion, the Great Compression of Incomes, the Glory Age of Capitalism, 1945-75 - The war showed many people that economic planning maybe the best way forward. - The days of laissez faire were behind, and the welfare state was a good thing; no nation came out of the war thinking the contrary. - It shows middle-classes especially how at risk they really are for losing everything. - Capitalism was working for most countries post-war; wages were rising for everybody. - Raising those at the bottom fastest. - Taxes are cutting those at the top. - Shrinking of agriculture and industrial sectors (de-industrialization) and the expansion of the middle classes (CHECK IMAGE). - Many of the victims of social change (primarily industrial workers) end up in lower wage jobs in the lower-white collar jobs (clerical). - IMPORTANT: This period can’t be used as an economic model for the future, because the factors of post-war Europe are not common and impossible to replicate; many of these things can’t happen again. - A time of great social mobility - There were a growing number of good jobs created by the market. - There was an expansion of higher education (university, etc.) - Ie. About half of Queens’ buildings were built during 60s and 70s. - It was a time of growth and productivity, never before seen in history. - The “original sins” of overspending still haunt the present. - Revenue Canada pays about 10% of every dollar it takes in towards the debt interest. - Canada Savings Bonds, Treasury Bills, etc. - When unable to pay the debt, it borrows from the private market. - Typically viewed as safe investments, but countries that are in danger of defaulting offer higher rates of return to make investment more attractive. - Note: Sweden revolutionized pensions: matched to national resources. - Deficits will be counted by increase in taxes (at rate of economic growth). - The expansion of state was coupled with an increase in societal trust of the government. - Belief that it could (or should at least try) to fix social and economic problems. - That number has dwindled to about 1/3 North Americans trusting the gov’t. Keynes and Post-War Spending: Is there a link? - Keynes is often given credit for the post-war expansion of the state. - Would be given indirect credit due as he passed away in 1949. - Debts could be used to achieve full employment. - To counteract the lows of the business cycle - States often ignore part two of his advice - Raise taxes and acquire economic surpluses - “States were innocent until proven guilty, markets were guilty until proven innocent” The Physical Impact and Destruction of War: Forced Expansion of Infrastructure - 750/950 bridges must be rebuilt on the Rhine River. - By 1950 the state owns ___ of the economy (GB 25%, France 50%, Italy 50%, avg. 5- 10%). The Politics of Consensus and the Expansion of the Social Services - “If you build it, they will come” (voting). - It was a time of great economic breakthrough. - Unemployment around 2-3% in 1950-60’s, - Avg. Western European worker’s wage increases 250% from 1940-70. - British Prime Minister Harold MacMillan, 1959, “You’ve never had it so good” - It was very easy to be a politician in this time; “how much should we spend this year?” - Debates were based on how much and where to spend. - Corporations of a certain amount of workers needed to provide representation for them on the board, it helped to keep wages in line with productivity growth. - Workers were integrated into the boardroom in about 8 European Notions. Reckless Optimism? Or Bills for Future Generations? - There was a slide on wage growth. - Economic growth was 3-5% and social spending increased 10-12%. - It was assumed that the good times would go on - From 1945-70 most deficits were in the name of infrastructure and investment in social capital. - Critics of social and economic planning state that, “they are like the farmers that believe the sun goes up because the rooster crows”. The Politics of Full Employment - “The days of mass unemployment in industrialized societies are history: problem solved”. - 1967 Economics Textbook Le Plan. Commissariat General du Plan: France - Influenced by Sovietism. - Planning of spending and government subsidization. - Which industries get the cash? Progress Paradox - In 2013 most people are better off than in 1975 (the so called glory days).
More Less

Related notes for HIST 253

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit