SOSC 1510 Lecture Notes - Lecture 10: The Affluent Society, Fiscal Policy, Monetary Policy
7 Sep 2018
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Document Summary
Capital enjoys its golden age high profits, continuing control. The canadian state in the post-war/fordist period welfare state. Uses keynes" contra-cyclical policies to control the business cycle and ensure smoother economic growth. Monetary policy controls the money supply and interest rates. Fiscal policy adjusts taxes and spending. Government spends to stimulate demand/growth and restricts (taxes) to slow inflation. Guarantees labour the right to organize/bargain collectively. Strengthens the social safety net unemployment insurance, medicare. Affluence allows upward mobility for many working people into the middle class. Labour fought against how capitalism was concluded in the 1800"s and early 1900"s, and finally achieved a compromise after 1945, gaining new rights and creating new institutions, most notably, the welfare state. In such cases, governments should use fiscal policies (taxes and spending) to stabilize business cycles.
