POL208Y1 Lecture Notes - Mass Politics, Marshall Plan, Anti-Corn Law League
14 Apr 2012
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Document Summary
The historical record: the repeal of the corn laws. If there is no body to regulate trade there is trouble. Increase in the amount of free trade when we have a hegemon; protectionism occurs when there is no hegemon. If enough countries adopt protectionist policies others do not wish to be exploited and as such they defect. If there had been a hegemon during this time this would not have occurred; would have allowed government to resist instinctive moves towards protectionism. Does it work: the main evidence is correlation, the theory suggests causation. It is an elegant and parsimonious theory; the evidence, however, is inconclusive; static; how does it work in practice; the role of institutions. Lessons from wwii: the great depression, deflation and laissez-faire economics; didn"t work; lead to more unemployment and social and political turmoil, government response, protectionism only made things worse, rise of extremist political movements; ultimately ends in war.
