RLG200H1 Study Guide - John Maynard Keynes, Means Test, Keynesian Economics
Document Summary
John maynard keynes asserted that in times of economic downturn, national governments should establish social programs to ensure that people would still have enough money to purchase goods, thus sustaining individuals and families and keeping economies functioning. In the keynesian welfare state, governments were to finance this intervention by increasing taxes in times of economic growth and by deficit spending in times of economic slowdown. Financial collapse of many of the world"s large banks, investment firms, and some national treasuries indicated that regulation was necessary and that the state did have a role to play to ensure some stability in the financial system. Some social welfare programs are delivered as direct services; children attend primary and secondary schools; Some social welfare programs are delivered as indirect services. (tax reduction; child tax benefit given every month) Our eligibility for social welfare is also determined on a variety of bases, generally categorized as universal, contributory, and means-tested.
