modern liberalism
- +ve freedoms
- progressives believe that certain conditions prevent all members of society from achieving equality
- gov intervention is NECESSARY to ensure EQUALITY of OUTCOME
- protect citizens by guaranteed ciil liberties combined w open and transparent gov:
- tyranny comes from too much gov intervention
welfare capitalism
- economic system that combines capitalism and social welfare
- balancing individual econ freedom w gov providing social protections
- reduce poverty, provide social safety net, promote social equity.
- capitalist econ that includes substantial gov involvement
key events in the devlopment of welfare capitalism
- indust rev: charists, socialists, classical conserv
- late 19th century insurance programs
- great depression
- post-world war era
- late 20th century shift right
- pandemics and the rise of AI
welfare state
- nation-state where gov plays important role in protection and promotion of economic and social well-being of citizens
welfare state characteristics
- democracy
- capitalism
welfare state based on following principles
- equality of OPPORTUNITY and OUTCOME
- equitable distribution of wealth
- collective resp for ensuring minimal necessities for good life
elements of behavioural economic s
- cognitive biases
- nudges
- social preferences
- time pref
elements of behavioural economics: nudges
subtle changes in the way choices are presented that can influence behavior
elements of behavioural economics: soc pref
fairness, reciprocity, and social norms
elements of behavioural economics: time pref
immediate vs long term reward
canada healthcare
- publicly funded healthcare- texes
- no direct c ost to citizens
- 11.6% of GDP spent on medicare
use healthcare
- priv and pub
- priv insurance, gov programs and ut of pocket expenses
- 17% gdp spent on hc
what does priv healthcare have higher of
higher administrative costs (overhead expenses, profit margins)
pub healthcare tends to have
streamlined administration
- cost of med supplied and meds tend to b lower in public systems: gov negotiation of price
john maynard keynes
- british economist
- walked out paris peace conference over terms of ToV, predicted rise of totalitarianism
- attended Bretton woods conference and helped make the IMF and WB
keynes beliefs (demand side econ/keynesian econ)
- believed the role of gov should improve welfare of citizens by
- ensuring full employment (less than 3% employment)
- using monetary and fiscal policy to create econ stability
- reduce extreme ups and downs of business cycle
- promote econ growth focused on future
- regulate “demand” via gov spending
theory of demade side econ (keynesian economics)
- concerned w total demand for goods and services in econ
- gov can help ease booms and busts of econ by regulating taxes and spending through fiscal and monetary policy
fiscal policy
gov use of spending and taxes to control business cycle
monetary policy
gov regulation of money supply, usually through interest rates, printing/destroying currency
free market forces
free market gorces guide the economy = supply and demand
inflation
economic growth- lead to increased costs
- fewer workers= inc wages, inc wages = inc price in foods, etc
recession
decline in econ ectivity, leading to unemployment
- prices reduces, workers laid off
deficit financing
gov goes into deficit during a recession to pay for social programs, pays off deficit during inflation = ensuring demand for products, encourages econ growth
stagflation
inflation occurring during recession
- inc price of oil leads to inc production and transportation costs= less demand oil
- leads to need for less workers, leading to layoffs
- inc oil prices cause price to inc for products manufactured w oil = more layoffs
