AHSS*1200 Lecture Notes - Lecture 4: Progressive Tax, Responsible Government, Money Management
Document Summary
Introduction: golden era of capitalism the period between 1945 and the early 1970s when the economy flourished. Keynesian economics the use of redistributive mechanisms, such as income security programs and a progressive tax system, allowed governments to re-direct money to low-income earners who would in turn spend money, thereby stimulating the economy. The keynesian model worked in canada until economic changes occurred. In the golden era, canadians had good jobs (pay) and unions made inroads with job security and workplace benefits. There was both money and public support for governments to provide keynesian economics based social welfare services. Mulroney that was the end of canadian economics: downturn canada experienced an economic downturn in the 1970s, response governments borrowed money to deal with a perceived. Temporary situation: budget deficits resulted: spending exceeded income, public debt accumulated: the total sum of all unpaid deficits, trend economic decline in canada (parallel to other countries) was later recognized as a long-term permanent trend.
