We used to think that you could just spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour, that option no longer exists, and that in so far as it ever did exist, it worked by injecting inflation into the economy. And each time that happened the average level of unemployment has risen. Higher inflation was followed by higher unemployment. That is the history of the last twenty years.1
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Notes and References
- 1.Labour Party, Report of the 75th Annual Conference (1976) p. 188.Google Scholar
- 4.B. Donoughue, Prime Minister (1987) p. 187.Google Scholar
- 6.P. Taylor-Gooby, The Politics of Welfare (1985) Ch. 5.Google Scholar
- 7.P. Kavanagh, Thatcherism and British Politics (2nd ed., 1990) p. 311.Google Scholar
- 8.The term ‘classic’ welfare state was coined in Anne Digby, British Welfare Policy (1989).Google Scholar