Week 9- Social Welfare Policy
o Look at specific issues raised in class and pick one to focus on your paper
o Email TA with topic and thesis by Monday!
o Research Questions
why is government policy the way it is? Internal
Why is government policy this way at this time and this way at this time ? -cross
analysis of time
o Ideas, institutions or structures
o Social learning
Policy makers customarily work within a framework of ideas and standards that
specify the goals of policy
One of the principle factors affecting policy at time 1 is policy at time 0. The
most important influence in learning is previous policy.
Policy responds less directly to social and economic conditions than it does to
the consequences of past policy.
Path dependent trajectory.
First and second order change can be seen as cases of normal policymaking,
namely a process that adjusts policy without challenging the overall terms of a
given policy paradigm
o Bradford- Used to understand economic policy
looks at the mediation of ideas at two different levels
1. Structural-economic relations rooted in dynamics of capitalism set
boundaries on the range of legitimate ideas that will be considered
2. Institutional-political arrangements channel competition among such
What capitalism is at a particular moment is different than it was yesterday.
We have to understand national level associations that mediate and influence a
social Keynesianism X
Technocratic Keynesianism + did not view capitalism as fundamentally
flawed; rather the Great Depression revealed Canada's special problems
of cyclical instability rooted in staples exporting economy.
THIRD ORDER CHANGE.
1970S PC- truly important failures occurred on the economies supply side.
Neoliberalism- expertise and rationality of the state is bounded and
officials are motivated to act in ways that undermine the public interest.
economic policy in canada is dominated by a technocratic keynesianism policy
and then a neoliberalist view
o Keynesian demand Theory
Aggregate Demand- overall level of demand in an economy for goods and
3. Government spending
4. Net Exports
All Keynesian approaches focuses on the above criteria
How do we promote these in an economy
How do you create positions right for this process.
argues that markets are preferable to states in organizing economic and social
market is the most efficient and effective mechanism of social organization
state interference in the market is, by large
Inflation needs to exceed stagnation
o Talking about policy controlled by central banks.
o Manage Interest Rates
o Overnight Rate
The Overnight Rate is the interest rate at which banks can borrow and lend to
one another in the interbank market
The BoC sets a target for the Overnight Rate and provides reserves/money to
accommodate demand at that target
The BoC provides reserves via OMO
o we cannot understand how economies can or cant work without understanding
Neoliberal Social Policy
o Organizing Question
1) What is the nature of social policy under neoliberal globalization
Debate: Neoliberalism has seen a strong shift away from social entitlements VS
the welfare regime associated with Keynesianism has been remarkably resilient
o Welfare State