Lecture Block 2 Flashcards
(27 cards)
Why is economic growth not always a positive
- can lead to lower standards of living
- lower wages
- greater rich and poor divide
Developmental factors boosting GDP include
1) A mass improvement in the standard of living
2) A reduction in Inequality
3) A shift out of dependant on primary production
What were the standards of living like during the industrial revolution
Feinstein says no improvement in SOL due to the exploitation of the poor. there was still a large pool of lower income workers
What was the wage trend during the industrial revolution
It was rather static with little to no variation
Why does the standard of living vary
It depends on what developmental indicator is used
What did Horrel provide in reference to the standard of living
Gioi coefficient which rose to represent higher level of inequality
Why was the standard of living hard to measure during the industrial revolution
there wasn’t any surveys on the general population
Name some causes of slow or zero improvements to living standards during the industrial revolution
- Improvement on nutrition and medicine lowered DR
- Rapid labour supply growth
- Mass Migration due to the potato famine
What are the assumptions held by the Lewis surplus labour model
1) Flat labour supply curve held down by living standards
2) In the modern sector demand for labour is determined by the marginal product of labour
3) Marginal revenue curves outwards is determined by the utilisation of capitalists surplus A,B,C
What are the implications of the Lewis labour supply model
1) Investment and growth depend of the size of utilisation
2) Capitalists have an incentive to keep wage down in the subsistence sector
3) This can be done by political pressure against investment in the subsistence sector
Why did the standards of living increase in the Victorian Era
1) government began to take interest in likely living standards
2) Real wage increased but still a bias with the distribution of income
3) levels of poverty were reduced due to government intervention
Give 3 examples of poverty relief in the Victorian Era
1) The efficiency wage to increase productivity
2) Churches payed small amounts to the needy
3) parishes payed small amounts to the needy
What was the New Poor Law
1834 law aimed to provide financial support to the Indigent population
Who were the first two social pioneer investigators during the Victorian Era
Booth in London and Rowntree in York
How did booth represent and categories the poor
Uses a colour coded system and fit the poor into the following 4 categories
1) Lowest class of semi criminals
2) Poor Labourers
3) Intermittent earnings
4) small regular earnings
When was the Rowntree enquiry and where was it
York 1899
What did Rowntree discover
He discovered that poverty wasn’t just bad in London but he tested Booths theory of poverty and also created one of the first poverty lines. Resulting in approximately 16% of York being in poverty.
When was the Asquith administration and what did it do
Founded in 1906, it introduced free school meals state pension and national insurance
Give a brief description of the interwar period and when was this
1) 1930’s
2) Unemployment at 20%
3) Countries never ran budget deficits
4) decline in coal shipping and textile industry
5) social policy broadened e.g unemployment benefits
What establishments were created after WW2
1) World Bank IMF and WTO
2) labour government to try and avoid mass unemployment increased the level welfare benefits as well as creating the NHS
what did the 1970s first poverty surveys do which other surveys didn’t at the time
Used terms such as relative and absolute poverty
What were the two problems with the welfare state in 1970s
1) Stagflation crisis so expensive to afford
2) Gave people an incentive to stay out of work
What Changes did the Thatcher administration implement to tackle the problems in social welfare
1) monetarism
2) almost all nationalised industries were privatised
3) welfare states cut so people tried to find jobs
Education in the Modern era was a
Important factor of production with positive externalises
