Class Notes (836,580)
Canada (509,856)
York University (35,328)
Social Science (3,019)
SOSC 1340 (125)
Kean Birch (28)
Lecture

Canada's Economy Today
Premium

by Anu J
7 Pages
115 Views
Unlock Document

Department
Social Science
Course
SOSC 1340
Professor
Kean Birch
Semester
Fall

Description
Anushree Joshi DAY 5 LECTURE – October 5th Outline - Outline of today’s lecture o Government, states o Government intervention in the economy o Crisis of the 1970s (following the Golden Age of capitalism) o Neoliberal response (1980s-1990s) o Contemporary Canadian economy o Global financial crisis (2008+) Key Concepts and Terminology - Mostly about the government and states - Have to understand the role of the government in the economy (why it should or shouldn’t interfere with the economy) - State = political organization of geographical area o Also called a nation-state o Includes the legal system, various organizations (i.e. police, universities, schools, ministries, embassies, parliament, courts, bureaucracies, agencies, etc.) o Legitimate sovereign power (ability to govern the people and the country) o Provider of public goods (i.e. security, army, anti-terrorism squads, welfare systems, etc.) and collective goods (i.e. railroads, street lights, roads, etc.) Government Role in the Economy - Areas of intervention o Regulation and law  Regulates production of goods  Regulates economic activities  Establishes property laws i.e. property laws, real estate laws, shareholder and ownership rights, intellectual property rights, etc. (mostly intangible) o Monetary policy  Controlling inflation  Stabilizing crises o Infrastructure  Building roads, railroads, energy power plants, canals, fresh water extraction sources, etc.  Capital goods for the economy o Public sector employment  Employing people in healthcare, education and other agencies o Welfare  Safety net for people  Health insurance, EI, etc. Professor: Kean Birch Business and Society (SOSC 1340) Tutor: Julian Germann Anushree Joshi DAY 5 LECTURE – October 5th o Public ownership  i.e. Ontario Hydro o Industrial & research policy  Investing in new scientific discoveries  Promoting new kinds of technology - Debate on whether or not the government should be involved in the economy or not? o In 1800s, the emergence of economists and economic theories, saying governments shouldn’t intervene with capitalist economies o In 1900s, socialist revolutions, socialism, central planning of the economy - Two perspectives on government intervention (see lecture slide #9) Crisis of the 1970s - Pre-crisis o The Golden Age of capitalism o Rising levels of GDP (people have more purchasing power) o Government focused on: expanding trade, ensuring full employment, increasing purchasing power of consumers, providing welfare - Keynesianism = pro-state intervention o Government didn’t have much control over the people; on the brink of a labour movement; didn’t want to shift from capitalism to communism like Russia, so introduced Keynesianism as an interim want for government intervention o Who was Keynes?  British economist 1883-1946  “I’m going to save capitalism from itself” o Keynesian demand management  For central planning by the government  Increasing government spending during recessions  create jobs  people have money  people have more purchasing power  people create demand  economy runs Professor: Kean Birch Business and Society (SOSC 1340) Tutor: Julian Germann Anushree Joshi DAY 5 LECTURE – October 5th  Thought governments should be focused ensuring full employment  People have jobs  people have more purchasing power  they buy things  It was the government’s job to provide welfare o Canada’s post-WW2 government policy  Focus on welfare  Health  Unemployment  Giving resources and capital to all provinces o Didn’t work out too well because Canada focused on mostly natural resources o The end of Keynesianism  Neoliberal view of why it happened:  Unemployment o Governments misunderstood unemployment; they thought it goes up and down o Governments protected old, inefficient industries instead of allowing new, dynamic industries to flourish  Inflation o Impact of 2 oil crises on inflation o Crises raised inflation o US government spending in the war pushed up inflation as well  Power o Trade unions and governments have too much power  Alternate views:  Revolt of the rich o As inflation rose, it threatened their wealth  Domestic economies were being opened to global pressures o Countries around the world were competing in the production of manufactured goods o Shift from Keynesianism to Neoliberalism  Neoliberals obsessed with inflation  Cutting back on welfare, government spending  Decrease government intervention  Allow the markets to play out and adjust as naturally as they could  Key advocate for neoliberalism: Milton Freidman - Canadian Fordism o Named after Henry Ford o System of production (mass production, assembly line)  Individual tasks in an assembly line to create a whole product  Made the production of things cheaper Professor: Kean Birch Business and Society (SOSC 1340) Tutor: Julian Germann Anushree Joshi DAY 5 LECTURE – October 5 th o Government intervention post-WW2 encouraged Fordism  Social compact  Trade unions, workers, governments would work together  Domestic economy  National issues  Taking care of the nation to address smaller issues  Promoting manufacturing  Promoting production of new goods  Mass production enabled mass consumption  Economies of scale made each successive goods cheaper and cheaper, allowed buyers with rising wages to have increased purchasing power  Prime example: automobile industry in Ontario o Car parts o Assembly lines o Branch plants o Auto-Pact of 1965  Lowered the taxes on imports/exports of cars and car parts Neoliberal Response (1980s-1990s) - Set of ideas in which government intervention in the economy is seen as negative because it interferes with the working of the free market o Free market runs itself o Supply and demand mana
More Less

Related notes for SOSC 1340

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit