- Subject index
This accessible and original text combines a systematic examination of the theories of welfare with an historical account of the evolution of the welfare state and its impact in promoting social justice. It identifies the principles governing social distribution and examines the rationales for these different distributive principles. This book also links the theories of distribution to the actual development of social policy and considers their outcomes. State Welfare will be essential reading for students of social policy. It provides a clear understanding of both theories of welfare and the history of the development of the British welfare state.
Chapter 7: State to Market: Market to State
State to Market: Market to State
By 1976, the modest economic growth promoted by Labour's expansionist strategy had declined sharply. The balance of payments was in deficit, unemployment almost doubled and inflation, fuelled by another OPEC oil price hike, was 24 per cent. ‘Stagflation’ had hit Britain. The recession of the early 1970s had been countered by pure Keynesian techniques but the seeming failure of Keynesian economics to supply a lasting solution provided a window of opportunity for alternative economic and social approaches to attract attention.
In early 1976, a Treasury paper announced that 60 per cent of the GDP was devoted to public expenditure (Chancellor of the Exchequer, 1976: 1). It claimed:
When world demand picks up, more resources – ...