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Immergence of the Post War settlement.docx

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Political Science
Course Code
POLI 359
Mark Baron

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Immergence of the Post War settlement  1945 – transition from classical democracies into welfare democracies or welfare states.  Contradictions affiliated with the classical liberal state o Restricted franchise – restricted according to regime censitaire and principe capacitaire – largely restricting to minorities (white, wealthy, property owning men) o Labour laws – states that are largely being dominated by electoral process (males educated in society) Advancing groups interests in society. o Minimal or non existent welfare systems (being disenfranchised politically and economically) privilege a few, disadvantage most.  Great Depression o Motivated by trade protectionism, break down in international trading system and demand, lead to deterioration of industrial need which subsequently lead to unemployment and stock market crash. o Starting to question Adam Smith, invisible hand + laissez fair economics.  World War II – in Europe o Infrastructural damage o High degrees of homelessness  civilian centers attacked in order to break the will of society. o High rates of unemployment  consequences of the destruction. Increases when Europe is no longer at war and millions of people who were deployed come back to find their places no longer exist or a place to work. o Refugee crisis  displaced populations due to the war. Require repatriation of people to go back to their original country. o Food crisis o Financial crisis  many states were completely spent, consequence of war. Indebted to other states. o Emerging or ongoing gender contradictions  women were fundamental to prosecuting campaigns. Put into workforce. Become highly skilled – working at home and in industrial sectors. Won’t be satisfied at a second tier status.  Cold War o Instrumental in pushing for a transition from classical state to welfare state o Soviet union presented an alternative model to the classical liberal state. Workers were happy and productive. Dictatorship of proletariat. Mandate was to advance interest of workers. o Revolution with support of USSR. Post-War Settlement  Lasted from 1948-1973  1973 is pivotal to the demise of the welfare state  onset of oil crisis, precipitated by the Yom Kippur War. Lead to a transition away from the welfare state to something that is known as the neo-liberal state.  Contrived in Western Europe, USA, Canada, Australia, Japan, New Zealand  Gave rise to the welfare state. o Particular form of democratic state that seeks to resolve all of the problems that happened before by making democracy more politically and economically inclusive. Welfare State  Based on the practice of corporatism/ corporatist tripartism. Workers agree to support the corporation. These owners concede to the right of workers to organize. Collective bargaining – workers involved/negotiating with the owners/representatives for the company of what their social contract will be (benefits, wage etc.) For the first time, they expect that the state will intervene to uphold collective bargaining agreements between corporations and workers. Remediate etc. State has a role to play in intervening.  Keynesianism o John Maynard Keynes – economist of interwar period – critic of unregulated capitalism. o Argued that the market economy was prone to crisis – could not get out of crisis by virtue of own instruments. o Advocate of state intervention – maintain overall health of the capital economy and the stability of capitalist political economy as a whole. o Fiscal Policy – accelerate growth in economy through targeted spending (state) in the economy for purposes of creating jobs. Does two things: 1. gives people disposable income to use in the market place to stimulate demand and growth. 2. Puts money in peoples pockets, as a state you can tax a percentage of that income which you can subsequently recycle into governmental programs. o Monetary policy – regulates the amount of money in circulation – regulated through manipulation of interest rates. If you happen to be moving into an inflation, you increase interest rates. o Debt – Government borrowing. Makes sense to go into debt during a down economic cycle to engage in an effective fiscal program. Avoid depressions. Governments borrow to provide treasuries with the money they need for fiscal initiatives. Once things normalize, they can stop borrowing and start to engage in normal processes and pay down debt before it provides a drag on the economy. Debt accumulation in down cycles, pay off debt in up cycles.  Fordism – A production practice that is said to be innovated by Henry Ford. Post World War II era (1945). Largely focuses on assembly line production. Incremental process from rudimentary to roll off of assembly line process as finished product. Assembly line production allows for products to be made in extremely large units. Consumed not only by elites. Higher wages year after year. Instrumental in the maintenance of the welfare state and the social contract that accrues because of that.  Full employment – due to demand. o Two mechanisms for implementation by the US  Marshall Plan – Distribute millions of
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