POL SCI 50 Lecture Notes - Lecture 1: Corporatism, Infant Mortality, Proletariat
Document Summary
A state that is intentionally involved in the economic life of the nation through managing the economy with specific social and political goals in mind. The welfare state is an example of an active state. An economic and political system in which a country"s trade and industry are controlled by private owners for profit. Capitalism usually leads to socially inequalities and the creation of economic classes (proletariat vs. bourgeoisie). The economic systems established in the former soviet union and eastern european countries in the guise of marxist-leninism that replaced private ownership of production with centralized state ownership, where the state was monopolized by the communist. These economic systems proved inefficient and have largely collapsed in the past. The tradeoff between spending money or saving and accumulating it. These are the two key features of the keynesian fiscal policy. Spend money and accumulate debt when the economy is slow (consumption) and accumulate and save money when the economy speeds up (investment).
