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- Keynesian economics
- institutional social welfare
- more government: public
- Conservative/Free market
- Supply Side economics
- Residual economics
- less government: private
What have advocates of liberalism argued for?
advancing the public good by promoting an expanding economy coupled with the growth of universal, non-means-tested socail welfare and health programs
New Deal: Social Security Act of 1935
The government taxes the wealthy, thereby securing the necessay revenues to fund social programs for workers and the poor
Liberalism led to
Federal Housing Administration, Medicare, Veterans' pensions, and federally insured student loans
What was left of traditional liberalism was replaced by _____ that was
- more cautious of government, less antagonistic toward big business, and more skeptical about the value of universal entitlements
postliberal formulation replaced social welfare entitlements with investments in _____
after the replacement of social welfare entitlements; public spending was divided into "_____" and "_____" categories.
good and bad
- unproductive expenditures on welfare and price supports
- investments in human capital, such as education, research, and job training
Keynesian economics _____.
drives liberalism and most welfare state ideologies.
Keynes' economic theories _____.
formed the substructure and foundation of the modern welfare state, and virtually all welfare societies are built along his principles.
Keynesian economics are sometimes called ____.
Keynes saught and economic balance. During a recession he believed in the need to
print money and spend it then when it's over stop printing and spending to prevent inflation
Whereas liberalism is guided by Keynesian economics, the conservative view of social welfare is guided by ____.
free market economics
Conservative or free market economics believe that ______.
government is the cause of economic problems
Milton Friedman called for a government that _____.
inactive in economic affairs that did not try to manage of intervene in the business cycle
In relavance to conservative or free market, supply side economics (popular in the 1980s) was an idea to ______.
cut taxes, especially for the wealthy, believing they would have incentive to make more money, thus pay more in taxes, creating revenue
Conservatives believe that large social welfare programs are _____, because they_____.
- detrimental to society
- erode work ethic and divert money that could be invested in the private sector
The public choice theory states that ____.
public sector bureaucrats are self-interested utility-maximizers, and that strong incentives exist for interst groups to make demands on government
Public choice theory was _____.
misnamed, does not represent the public, rather represents the lobbyist and interest groups
Flaws in free market economy
- unregulated free markets did not yeild superior economic gain
- collapse of the housing market
- subprime loans
- risky investments