PSCI231 Lecture Notes - Lecture 8: United States House Committee On Oversight And Government Reform, Government Spending, World Trade Organization
22 Nov 2017
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Document Summary
Laissez-faire: gdp = c + i + g + xn, c: consumption, g: government spending, xn: net exports. Monetarism: centres on the role of money in the economy and how inflation (a general rise in the overall price level) hurts investment (i) Government budget deficits (g) have to be avoided as this can produce inflation which hurts economic growth (gdp) Supply-side economics: focuses on supply and production (i) rather than on consumption (c) Believe properly designed cuts can increase employment levels. Core beliefs: fiscal discipline and the minimization of government budget deficits, reorientation of public expenditures (from welfare to economic competitiveness) Phases: roll-back: overtly ideological when keynesian ideas are still around, large policy changes (ex. If governments want full employment: 1) adjust the government"s own spending or; 2) stimulate private sector consumption or investment. The neoliberal paradigm (supply: laissez-faire economic doctrine, monetarism role of money in the economy, supply-side economics, public choice theory.
