Essay Q

Question 1

Explain economic restructuring

Answer 1

Economic restructuring

• a shift from manufacturing to a gig economy
• heavily favours skilled workers in the creative or technological field
• started in 1970 when cities found need to make industry jobs to service
• automation increased this process
• less workers needed due to machines

This has created irregular and inconsistent sources of income

• varying source or income and unpredictability
• contract based work hard to obtain benefits
• hard to invest in the individual because of irregular income

Neo-liberal welfare state

Neoliberalism : a policy model that gained popularity in the 1970-1980s that favours private sector from public. It prioritizes deregulation, free trade and more importantly reduced government spending

• makes government intervene less in funding and welfare aid
• taxation is uneven with people earning various income and being taxes differently. People with same income may be taxes differently
• limited public service funds since it is funded by the government
• resulting in poor services from the government, better if externally funded

Effects minimum wage

• minimum wage would freeze if not for the governments help
• those who rely on it are vulnerable to market instabilities

-hard to move on the economic social heirarchy if barely surviving off the minumim wage