HIST113 Lecture Notes - Lecture 15: Accelerated Depreciation, Indirect Tax, Government Spending
Document Summary
Lecture 15: business and the state in the postwar period: examine the factors from 1900 to 1945 that lead to greater government intervention in business and the economy after 1945. Two new superpowers (united states and soviet union (ussr)) Canadians able to save money through victory bonds from wwii. Demand more luxury goods, fueling possibility of business development. Example of the positive benefits of government management of the economy. Government maintained high levels of productivity during wwii (good impression towards citizens) Increased government regulation of economy after 1945: Influencing amount of money in economy: contra cyclical spending: design spending and tax policies during business cycles to level out troughs and peaks. Peak: slow down economy, raising interest rates so there will not be overconsumption. Troughs: encourages economic activity by giving tax breaks: direct government spending on welfare programs, employment insurance. Government committed to regulating economy before end of the war.