Mixed Economies and Neo-Conservative Policies

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Questions and Answers

What is one of the main advantages of welfare capitalism?

Increases privatization of public services
Helps people during difficult times (correct)
Reduces government spending
Promotes classical economic liberalism

Which of the following is a criticism of welfare capitalism?

It leads to lower taxes
It promotes government intervention in the economy
It contributes to inflation (correct)
It enhances individual freedoms

What was a key economic strategy of Margaret Thatcher's administration?

Privatization of state-owned industries (correct)
Increased social program funding
Higher government spending on education
Expansion of welfare programs

Which of the following statements accurately describes Reaganomics?

<p>It involved cutting taxes for the wealthy (D)</p> Signup and view all the answers

Which of the following actions was taken by Ralph Klein during his tenure?

<p>Privatized government agencies (C)</p> Signup and view all the answers

Flashcards

Welfare Capitalism

A system that combines elements of capitalism, where private ownership and free markets operate, with social welfare programs provided by the government. It aims to balance economic growth with social equality.

Neo-Conservative Economics

A government policy that emphasizes reducing taxes, government spending, and regulations to stimulate economic growth. It often involves cutting social programs and privatizing state-owned businesses.

Trickle-Down Economics

An economic theory that proposes that tax cuts for wealthy individuals and businesses will lead to increased investment and economic growth, benefitting everyone eventually.

Privatization

The process of transferring ownership and control of public assets and services, such as utilities, transportation, or healthcare, from the government to private companies.

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Deficit Spending

Government spending that exceeds its revenue, resulting in increasing national debt.

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Study Notes

Advantages/Disadvantages of Mixed Economies

Helps people during difficult times.
Social programs (disabilities, welfare, pensions).
Begins process of stable government funding.
Examples of funding include healthcare, education.

Neo-Conservative Politicians

Margaret Thatcher (1979-1990)
- Thatcherism - higher taxes, deficit spending, rising inflation, contrary to classical economics, private organizations.
- Key actions include cuts to government agencies (e.g., British Airways, British Petroleum).
Ronald Reagan (1981-1989)
- Reaganomics - reduced government spending (healthcare, education), reduced taxes for wealthy.
- Increased military spending, trickle-down economics.
Ralph Klein (1992-2006)
- Reduced government spending (education, healthcare, infrastructure).
- Privatization of agencies (e.g., Alberta liquor, Alberta power and gas, AGT).