The Welfare State

Keynesian Economics

Alternative to socialism, government intervention in economy but kept to a limit. Control money and supply, stimulate economic growth through government spending. Keynes's ideas became widely accepted after World War II, and until the early 1970s. In the early era of social liberalism and social democracy, most western capitalist countries enjoyed low, stable unemployment and modest inflation, an era called the Golden Age of Capitalism. In 1971, Republican US President Richard Nixon even proclaimed "I am now a Keynesian in economics." However, with the oil shock of 1973, and the economic problems of the 1970s, modern liberal economics began to fall out of favour. During this time, many economies experienced high and rising unemployment, coupled with high and rising inflation. Requires high tax rate.

Beverage Report

Beveridge Report The Beveridge Report was presented by Sir William Beveridge, to the British parliament in November 1942. It provided a summary of principles necessary to banish poverty and 'want' from Britain - Beveridge's mantra throughout the report was 'Abolition of want'. The paper proposed a system of social security which would be operated by the state, to be implemented at war's end. The Report came in the midst of war, and promised a reward for the sacrifices undertaken by everyone. Highly popular with the public, the report formed the basis for the post-war reforms Beveridge argued for social progression which required a coherent government policy. five giants on the road of reconstruction: Want, Disease, Ignorance, Squalor and Idleness. Governments responsibility of full employment (economy and citizens will thrive)

Christian Democracy

Christian democratic party in Germany, primal political force led by Konrad Ardenour. Political ideology which emerged in nineteenth-century Europe under the influence of conservatism and Catholic social teaching. Combination of traditional Catholic beliefs and modern democratic ideas. workers' misery was recognised and, in reaction to the rise of the socialist and trade union movements and distinguished itself from the far right. Favoured social welfare and favoured European migration. Social Market Economy - Gov heavily involved in economy but engine of growth remains capatilism. Established late 1940s to rebuild industries. Importantly integrated western zone into European recovery programme. Projected beneficial impact of active government on life standards.

Jean Monnet

French political economist and diplomat. Chief architect of European unity and the founding father of the European Union. President of the High Authority of the European Coal and Steel Community, and thus he is known as the "Father of Europe". In 1945 Monnet proposed the Monnet Plan, it included taking control of the remaining German coal-producing areas and redirecting the production away from the German industry and into the French, thus permanently weakening Germany and raising the French economy considerably above its pre-war levels. The plan was adopted by Charles de Gaulle in early 1946. The Ruhr Agreement was imposed on the Germans as a condition for permitting them to establish the Federal Republic of Germany; France received a considerable portion of the Ruhr coal production at low prices.

Tripartism

ILO offered the world different way to solve social strife. It provided it with the procedures and techniques of bargaining and negotiation to replace violent conflict as a means of securing more humane and dignified conditions of work. Tripartism refers to economic corporatism based on tripartite contracts of business, labour, and state affiliations within the economy. Tripartism is a common form in neo-corporatism. Tripartism became a popular form of economic policy during the economic crisis of the 1930s. Set stage for Beverage Report as it was recognised that Government can be beneficial socially/economically (shown as they lived well during war) Also public wanted a reward for the war.

Clement Atlee

In 1945, Clement Attlee and the Labour Party defeated Winston Churchill's Conservative Party in the election. People lived better during the war, showing how the government could control economy/society and have a beneficial effect on life. Attlee announced the introduction of the Welfare State as outlined in the Beveridge Report. This included the establishment of a National Health Service in 1948, with free medical treatment for all. A national system of benefits was also introduced to provide social security, so that the population would be protected 'from the cradle to the grave'. The government he led built the post-war consensus, based upon the assumption that full employment would be maintained by Keynesian policies and that a greatly enlarged system of social services would be created - aspirations that had been outlined in the wartime Beveridge Report. public desire for Gov intervention and wanted a reward for the war.

Konrad Adenauer

Konrad Adenauer was a German statesman. As the first post-war Chancellor of Germany (West Germany) from 1949 to 1963, he led his country from the ruins of World War II to a productive and prosperous nation that forged close relations with France, Great Britain and the United States. He was the first leader of the Christian Democratic Union (CDU).

Planning Consensus

Stalin and FDR. Welfare state arises after the war (Gov takes growing role in looking after public). Planning concensous was idea that gov needs to plan for a long term goal economically. Emplified by Monnet and influence of left wing ideology (post war shift to left- right worked with Nazis destroying legitimacy). The political mandate for post-war reconstruction in the 1940s demanded an ideological consensus for state-directed town planning to regulate urban development. Government coordination to try rebuild through long term plans. Monet Plan significant as an example of 5yr plan.

National Health Service

The Labour Government introduced NHS on attack on 'disease' under Beverage Report. By 1950 95% of British public had signed up. The services were funded through general taxation and National Insurance as part of the introduction of a wider Welfare State. Socialised health care (government is healthcare providers). Family allowances, childcare, pensions, education.

The German Question

What to do with Germany? Chancellor agreed to orientate itself to the West (socially and politically). France opposes Germanys strength.