Politics test Flashcards
There are two clear turning points in New Zealand’s political history with respect to the Keynesian and neoliberal policy regimes. What are the key dates that mark these turning points?
Keynesian: 1935
Neoliberal: 1984
Which government established the Keynesian policy regime and modern welfare state?
The first labour government (In power from 1936 to 1949)
How many people were unemployed in 1950?
12
Briefly list four key feature of the Keynesian policy regime
1- State intervention in economy and society
2 - Primary commitment to full employment through management of economy
3 - Public provision of housing, health, education, welfare, and retirement income
4 - Limited state ownership
What was the key idea underpinning the Keynesian policy regime?
Free markets generate stagnation, unemployment and inequality, state needs to intervene (by using economic management and social welfare)
What was the key idea underpinning the Neoliberal policy regime?
If the government maintain low inflation, then the economy will spontaneously generate economic growth, higher employment and balance of payments equilibrium
Briefly list four key features of the Neoliberal policy regime, implemented from 1984 to 1999
1 - Monetarist Management of the economy: reserve bank control of money
2 - Market liberalization: Deregulation of the financial sector, liberalization of foreign trade, removal of direct assistance to industry and agriculture
3 - Regressive taxation reform: Top marginal income tax reduced, GST raised, most NZ households are paying roughly the same % of tax on gross income
4 - Public sector reform: Commercialisation, corporisation, privatisation
Which two governments rapidly and comprehensively implemented the neoliberal policy regime from 1984 to 1999?
1 - The Fourth Labour government, 1984-1990
2 - The fourth National government, 1990-1999
According to liberal pluralists, what are two of the main areas in which citizens can exert influence over the government?
Through the participation in elections and the use of communication through the media
Define the third way of the fifth Labour government by reference to the First way and the Second way
First way is Keynesianism, characterised by strong state intervention
Second way is neoliberalism, characterised by the large de-regulation and privatisation
The third way aims to tread a middle path between the two, blending market economy with social justice, balancing fiscal prudence with welfare investment.
Briefly outline one point for and against the neoliberal policy regime from 1984-1999
For: Low stable rate of inflation
Against: Large balance of payments deficits
The critics of liberal pluralism argue that business can exert disproportionate influence on government policy-making. Briefly state two points they make
Corporations and the rich can exercise disproportionate influence over government policy making, This is because of:
a - Money from businesses impacts the economy significantly which results in somewhat of a government dependency
b - Businesses are more influential in the media
According to Marxists, what are two key sources of working class power?
Numerical strength and size, the fact that they are essential to industry and services
Capitalism generates high levels of socio-economic inequality. According to Marxists, this generation of Socio-inequality centrally involves and process of ________?
Exploitation
What are three major forms of democracy to have emerged thus far in history
Athenian, liberal and socialist