Political Science 2211E Study Guide - Brian Mulroney, Fiscal Policy, Monetary Policy
21 Feb 2013
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Document Summary
Unattractive option for neo-liberals as a result of the degree of state interventionism. Unnecessary tools if proper fiscal and monetary policies are implemented neoliberals. Neoliberals agenda on fiscal policy by mid-1970s: size of government as expressed by its spending (measured in % of gdp or absolute terms) Argued government was too large: balance between revenues and expenditures (expressed by the budget deficit and accumulated public debt to which annual deficits contribute) Needed reform: priorities in government spending. Prime ministers jean chretien and brian mulroney both followed through a neo-liberal fiscal agenda. During 1990s recession: canadians were receiving fewer service relative to their tax payments, program expenditure shrank to lessen federal state"s impact on society, government maintained that further spending cuts are necessary to further deficit reductions. Neo-liberal government are ideologically committed to expenditure restraint and deficit reduction: evidence suggests deficits and rising public debt are most closely associated with: Budget plan under chretien focused heavily on expenditure instead of revenue.
