Welfare State Analysis

Today's assignment Part One (due Wed. 2/5) is to review and analyze the British Welfare State:

1) Review the notes in your packet.

2) Click on the BBC link: Among the features, read:

3) Breadline Britain (timeline), Hard Times & Poverty in UK

4) Blunket on Welfare State & State of Welfare (charts) and

5) 1st Time Buyers & Then & Now: A Hospital's Story

When done reading and taking notes, write your own 10 question BreadlineBritain quiz (with questions & answers).

Do Not just copy the quiz that is on the page, although you should take that when you are done. Quiz must be typed.

BBC: Breadline Britain

Part Two

In a one-page social and economic analysis, take a side on what the UK should do about its economic slump.

UK inflation falls to 2% target rate in December -- unemployment rate at 7.1%

Inflation in Euro Zone Falls, and a 12% Jobless Rate Doesn’t Budge

In your position paper, back one of two famous ecomonic thinkers.

John Maynard Keynes. Regardless of what other economists say, Keynes' brand of interventionist fiscal and monetary policy have trumped times like these since the Great Depression. The influential writings of Keynes, the British liberal who died back in 1946, still hold court in both Democrat and Republican circles in America and have been foundation of the British Welfare State. Central to his economic theory was the importance of deficit spending. The government is to play an important role in "priming the pump" of the national economy. Laissez - faire is out, active intervention is in. This is now economic dogma here in America. Not quite that far out in the UK.

Milton Friedman. Friedman’s view was that inflation, at the time a serious problem in many countries, was caused by governments pumping too much money into the economy.

At the same time Friedman was convinced that private individuals and companies should be given as much freedom as possible to carry out economic activities. Friedman became the most outspoken economist of his time, promoting small governments, low taxes, free markets and privatisation.He attacked even the dominant theory of the time, developed by the British liberal thinker John Maynard Keynes among others, who espoused capitalism with a softer, more human face.Friedman promoted capitalism in its basic and less human forms, centring on a fundamental belief in the working of markets and privatisation: market fundamentalism.

In 1976 Friedman was awarded the Nobel Prize for Economics, which gave him the status to impress not only generals like Pinochet, but others including British prime minister Margaret Thatcher (1979-90) and US president Ronald Reagan (1981-89).

Poor F.A. Hayek, the conservative economist doesn't get the nod on the blog. But he goes toe-to-toe with Keynes in this popular econ rap. Hayek also had the eye of the "Iron Lady." He received new attention in the 1980s and 1990s with the rise of conservative governments in the United States, United Kingdom, and Canada. After winning the United Kingdom general election, 1979, Margaret Thatcher appointed Keith Joseph, the director of the Hayekian Centre for Policy Studies, as her secretary of state for industry in an effort to redirect parliament's economic strategies.