Chapter 4 : The Economy & "Redefining" The State's Role. Pg 7

Question 1

Why did governments have less revenue in the early 1980’s? In the same period, why did government spending increase?

Answer 1

Exports declined, less consumption more unemployment = fewer taxes collected = less taxes to spend. Gov’t had borrowed a lot of money & fell into debt.

Question 2

How did governments in Canada pay for their increased spending?

Answer 2

They borrowed more money.

Question 3

Name the ideology that promotes a reduced role of gov’t - privatization, deregulation and the elimination of trade barriers?

Answer 3

NeoLiberalism

Question 4

How did this ideology influence gov’t budgets? What Actions did Mulroney’s gov’t take?

Answer 4

Austerity measures = spending cuts on social programs

Question 5

Why did Quebec implementación austerity measures? In which áreas did Quebec cut drastically?

Answer 5

To cut spending. Education & health

Question 6

Why did Quebec implementación austerity measures? In which áreas did Quebec cut drastically?

Answer 6

To cut spending. Education & health