Contrasting Models of British Political Economy PDF

CONTRASTING MODELS OF BRITISH POLITICAL ECONOMY: SOCIAL DEMOCRACY AND THATCHERISM UNIT FOUR, LECTURE TWO This Photo by Unknown Author is licensed under CC BY-S What Will We Learn Today? 1. The historical conditions and key factors behind the emergence or...

CONTRASTING MODELS OF BRITISH POLITICAL ECONOMY: SOCIAL DEMOCRACY AND THATCHERISM UNIT FOUR, LECTURE TWO This Photo by Unknown Author is licensed under CC BY-S What Will We Learn Today? 1. The historical conditions and key factors behind the emergence or adoption of social democracy 2. Key Influences of social democracy on the political economy of Great Britain post-war- Considering some political strategies THE RISE OF SOCIAL DEMOCRACY 1940’s-1979 This Photo by Unknown Author is licensed under CC BY-SA-N What Was the Aim of Social Democracy in the Politics of Great Britain Post-War? It has been argued that from 1945 to 1979, the UK functioned as a social democratic state where the government sought to reduce inequality and broaden opportunities. According to the Manchester Guardian, social democracy in Britian’s politics was aimed at “the ending of poverty” essentially bridging the inequality gap (cited in Crafts, 2024, pg. I1191) What Factors Led To The Consideration/Adoption Of Social Democracy In The UK? Economi c factors Politica Social l factors factors 1. ECONOMIC FACTORS The devasting impact of the World Wars and Great Depression The Economic Collapse of the 1930s through to the 1940s following world Wars which led to; 1. Crisis in economic growth 2. Increase in national debt 3. Unemployment increased exponentially 4. Poverty skyrocketed 5. Social inequality widened The war caused significant destruction to infrastructure and industry, requiring large-scale 1.1 Stagnation in Economic Growth 1.2. National Economic Debt 1.3. Unemploym ent  1.4. Poverty A phenomenon that was prevalent even before the 1900s, poverty was caused by many factors in the 1800s. Charles Booth (1886–1899), The main causes of poverty included: Seebohm Rowntree (1899–1900), Bowley Bowley, and Arthur Lyon (1912–1914) conducted research and found that: Low or irregular wages Up to 30 percent of the population of cities were living on or below the poverty line. Unemployment People could not pull themselves out of illness poverty by themselves. Large family size Poverty led to illness and death. Illness or incapacity Old age and unemployment The poor were not to blame for the condition they found themselves in. Death of the chief provider/ single- motherhood Data on Poverty Year/Period Poverty Rate/Insights Details Charles Booth's study showed 30% of 1901-1903 Approx. 30% (London) Londoners were in poverty. Seebohm Rowntree's study of York showed 1902 27.84% (York) significant urban poverty. Decline in poverty due to post-World War I 1920s Estimated 8.7% (London) economic recovery. Rise to approx. 10% (London, during Great Great Depression caused unemployment and 1929-1933 Depression) increased poverty levels. Significant regional disparities-significant Poverty in coal mining and industrial areas 1936 income inequalities was especially high. Wartime rationing ensured minimum nutrition; Absolute poverty fell due to full 1939-1945 Mixed impact during WWII employment, but relative poverty remained an issue 1.5. Social inequalities  2. Political Factors 2.1 Flaws in Pre-War and Mid-War Welfare Policies 2.2 Labour Party’s Vision and Leadership 2.3 Post-War Consensus This Photo by Unknown Author is licensed under CC BY-S  2.1. Flaws in Pre-War and Mid-War Welfare Policies Funding Challenge advocated for increase in state funding Inequality in reform implementation call for increase in central control Marginalised communities disadvantaged protest for a redistribution system Low paid workers received inadequate healthcare demands for the establishment of a national health service and the expansion of other healthcare services. Reformers advocated for universal allowances proposed as a more efficient and less stigmatizing alternative to means-tested benefits Women championed initiatives such as "family allowances” to financially reward women for raising children and supporting working men  2.2 Labour Party’s Vision, Ideology and Leadership Labour Party Conference of 1918: Adopted resolutions that established the foundation of the Party’s state-led, social democratic policy. These policies influenced Labour’s direction for much of the 20th century. Shaped by the Party's experience in the wartime coalition government (1915–1918) alongside the Conservatives and Liberals. The party, under figures such as Clement Attlee, delivered a vision to create aa welfare state through the redistribution of wealth, nationalisation of key industries, and universal social services which was appealing to a war-weary population. “The nation wants food, work and homes. It wants more than that - it wants good food in plenty, useful work for all, and comfortable, labour - saving homes that take full advantage of the resources of modern science and productive industry. It wants a high and rising standard This Photo by Unknown Author is licensed under CC BY-SA of living, security for all against a rainy day, an educational system that will give every boy and girl a chance to develop the best that is in them” (Labour Party Manifesto)  2.3. Post-War Consensus The 1945 General Election, it is argued, ushered in a period of political stability that was made possible by a bi-partisan agreement on the basic objectives of public policy. The post-war consensus can be characterised as a belief in: Keynesian economics A mixed economy Nationalisation of major industries The National Health Service Commitment to full employment A welfare state in Britain; social security and national insurance This Photo by Unknown Author is licensed under CC BY-S  3. Social and Cultural Factors 3.1 Shared Sacrifices During the War 3.2 Class mixing 3.3 Housing Crisis 3.4 High Infant Mortality 3.5 Beveridge Report and Popular Support for Welfare This Photo by Unknown Author is licensed under CC B  3.1. Shared Experiences and Sacrifices During the War War-Inspired Shared Sacrifice Collective Experiences; Demand for safety nets and economic security Strengthened Solidarity and Egalitarianism Change In Values “The mood of the people changed and, in sympathetic response, values changed as well. If dangers were to This Photo by Unknown Author is licensed under CC BY-SA be shared then resources should also be shared” (Titmuss, 1950, pg. 508 3.2. Class Mixing Due to the World War II Soldiers on the front line, British citizens in bomb shelters led to greater socialisation, child evacuees opened the eyes of the middle class to inner city poverty, rationing encouraged equality 3.3. HOUSING CRISIS Impact of Mass Bombing House construction had virtually ceased Labour was in short supply An estimated 750,000 new houses were needed 3.4. High Infant Mortality In 1901, infant mortality was high and life expectancy was low. Baby boys were expected to live for 45 years and girls 49 years. The life-expectation of a newborn child is affected by the infant mortality rates. As the lower graph shows, infant mortality fell rapidly in the first half of this century. From 1900 to 1930 the number of deaths per thousand births fell from 140 to 63. Infant mortality increased in the economic depression of the late 1920s and during the Second World War. In 1911-15, 63% of all deaths were premature (under 60 years)  3.5. The Beveridge Report and Support Among the William Beveridge wasPopulace a social policy expert who had worked with the Liberal Government at the start of the 1900s, helping to develop their social policies and reforms. During the war, Beveridge was appointed head of a committee charged with investigating social security in Britain. The Committee’s Report on Social Insurance and Allied Services was published in December 1942. It became known as the Beveridge Report. The recommendations were to create a system that was comprehensive – cover all problems relating to poverty, from birth to death universal – available to all contributory – paid into from wages non-means tested – available to all, even if unable to pay compulsory – all workers were to contribute How Was Each Giant to be Tackled Ignorance – to be defeated by free compulsory secondary education Squalor – to be defeated by ‘slum clearance’ Idleness – to be defeated by a government commitment to full employment Disease – to be defeated by setting up the National Health Service Want – to be defeated by a universal national insurance scheme  Key Influences of Social Democracy on the Political Economy of Great Britain 1.Adoption of Keynesian economic principles 2.Utilisation of a mixed economic approach 3.Creation of a welfare state funded through progressive/redistributive taxation and 4.Allowing for a strong trade union This Photo by Unknown Author is licensed under CC BY-SA movement. 5. Nationalisation What Did Britian’s Political Governance Under Social Democracy Achieve? 1. Succeeded in 2. Poverty 4. creating a reduction 3. Life Unemployment somewhat evident from Expectancy reduced egalitarian the growth of Improved substantially Society the middle class Reduction in Income Wealth Income Redistribution Redistribution Inequality What were the repercussions of adopting These are synonymous with social the factors that led to the adoption of Thatcherism democratic policies on Great Britian?  References Check the final slides on the Unit