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1000 - Class 10

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by

Kelly Blidook

on 8 October 2013

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Transcript of 1000 - Class 10

Ideologies: Liberalism
Posc 1000 - Intro to Political Science
photo (cc) Malte Sörensen @ flickr
During
economic recession
government should:

1.)
decrease interest rates
(monetary policy),
thus making it easier for people to borrow money,

2.)
spend more
than it collected in taxes
(fiscal policy)
Keynesian Economics
Fiscal policy
: government spending
Fiscal Policy vs Monetary Policy
Use of income tax as a means of redistribution

Services: unemployment insurance, old-age pensions, health insurance, etc.
The Welfare State
3. Emphasis on equality of opportunity
Leveling of playing field where disadvantages exist
Social Justice - some equality of “results”.

4. Strongly democratic
Types:

2. Reform Liberalism
Government maintains order only by enforcing general rules
Protect state
Protect individuals
Erect certain public works (goods)
Punish “free-riders”
1. Classic Liberalism
Adam Smith
:
The Wealth of Nations
(
1776)

The “invisible hand” in economics

Laissez-faire: “let alone” or “let do/make”

Spontaneous Order
Members of society pursue their own individual good, and respond to the initiatives of others
Types:

1. Classical Liberalism
Emphasizes absence of coercion

Views the state in “negative” terms
Lack of constraints

Equality of right

Advocates universal suffrage; historically favoured a property franchise.
Types:

1. Classical Liberalism
1. State should reduce the freedom of some in order
to provide opportunities for others

2. State has caretaking functions; views the state in
“positive” terms
Provide a helping hand (welfare state)
Types:

2. Reform Liberalism
2.) Limited state
Government as instrument, not as controlling
Liberalism
John Maynard Keynes:

In contrast to “laissez faire” position, government has important role in managing economy.
Keynesian Economics
4.) Consent of the governed
Government derives power from people

Popular sovereignty
Liberalism
3.) Equality of Right

Everybody follows same laws

Equality of Opportunity vs. Result
Liberalism
4 components all relating to concept of freedom (I.e. liberty : liberal)

1.) Personal freedom
Speech, religion, property, political opposition
Lack of coercion
Liberalism
Classical Liberal: Proportional tax
Everybody pays equal %

Reform Liberal: Progressive tax
Pay higher % at higher levels of income
Taxes
Goods and services that are not divisible among individuals

“Free-riders” take individual advantage at collective expense
A potential problem - Collective or Public Goods
Monetary policy
: control over interest rates and money supply
Full transcript