Key concepts Flashcards
1
Q
what is keynesianism?
A
created by John Maynard Keynes
believed in heavy government involvement in the economy- which would involve nationalisation and borrowing money to invest in the economy
2
Q
What is the issues with keynesianism?
A
borrowing money would lead to a budget deficit
3
Q
What did keynesianism hope to achieve?
A
Stimulus provided by the injection of money would eventually lead to economic growth, more jobs and higher wages for workers which could then be taxed to pay back dept
4
Q
What was the post war consensus?
A
- Keynesianism
- mixed economy
- Trade unions, government and businesses working together to decide wages and wage increases (social contract)
- understood importance of welfare
- Higher taxes to provide generous public services (support collective good above individual ‘greed’)
- ‘Welfare Capitalism’
