Transcript Lecture 1 Politics and Policy

Dr Maurice Mullard
Lecture One October 2010
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What comes first – does policy need decide
resources or is the economy that sets the
context?
Making Decisions on Health and Education
Spending
The UK Economic Context 2010
UK Deficit PSBR
UK National Debt
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AUTONOMY THE IDEA OF POLITICAL CHOICE
AS OPPOSED TO INEVITABILITY
The Coalition Government says there is no
alternative to austerity
The Opposition says this will lead to new
recession
How do we judge what is the correct analysis
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What is political choice in the policy process
CHOICES ON RESOURCES AND THAT
CHOICE IS POLITICAL AUTONOMY
THAT AUTONOMY IS CONSTRAINED BY
EVENTS BEYOND THE CONTROL OF
GOVERNMENT
THE ECONOMY AS A FORM OF CONSTRAINT
EVENT
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The meaning of Credit Crunch 2007 Bank
stopped lending in intrabank markets
Banks making loses on assets
Loss of Capital and Liquidity
UK Northern Rock Lloyds Bank RBS
US Bear Stearns Lehman Brothers AIG
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Declining GDP UK but also global GDP –
Loses in tax revenues
UK Stimulus package Germany and USA
Unemployment
Household Net Worth
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FIRST INDUSTRIAL NATION ROLE OF
MANUFACTURING AND INDUSTRIAL
COMMUNITIES
Coal Steel Making Cotton Engineering Staple
Industries
Great Depression 1929 mass
unemployment
Growht industries aircraft chemcials
Post World War 2
Growth of Service Sector
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BRITAIN IN DECLINE – REASONS AND
EXPLANATIONS
COMPETITION AND CATCH UP
DECLINE OF MANUFACTURING
DEPRESSION 1929- 1932
POLITICS OF UNEMPOLOYMENT
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KUHN AND PARADIGM SHIFTS
FREE MARKETS TO KEYNES TO FREE MARKETS
AND BACK TO KEYNES
IMPACT ON POLITICS AND POLITICAL PARTY
THINKING
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THE ROLE OF THE UK TREASURY
SPENDING MINISTERS
FISCAL POLICY Taxation and public
expenditure
Stimulus to the economy
Monetary Policy Interest rates
The Concept of Liquidity
The Savings Paradox
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UNDERSTAND THE TWIN CONCEPTS OF
AUTONOMY AND CONSTRAINT
HOW TO EXPLAIN POLICY MAKING IN BRITAIN
POLITICAL PARTIES IDEOLOGY AND BELIEFS