First Year Hon. Mention: A Brief Examination of the Shifting Economic Policies in the Advanced Economies (particularly in Canada's) from the 1930's to the 1970's

POLS 1010, Introduction to Business, Government and Society. CD: Bruce Smardon.

Abstract

Sebastian Amaya’s “Shifting Economic Policies in the Advanced Economies” is a cogent argument for the cyclical, unstable nature of the capitalist system. Amaya uses the concept of “aggregate demand”—an economic term referring to a strong interest in and desire for a given product—as a central concept in his paper. With this idea, he notes how Keynesian policies were introduced in the Post WW2 period to stabilize citizens’ purchasing power and avoid the fluctuating cycles of past laissez-faire economic policies. But with the coming of “stagflation”—high inflation and stagnant or negative growth—Keynesian economic programs that had stabilized economies and more equitably shared profits among all were removed and replaced by neoliberal policies the privileged capitalist profit-taking at the expense of other sectors of society.

Generally well-written and researched, Amaya’s essay displays an advanced understanding of a long-time economic problem: how to create an economy that serves “the whole population, not just the capitalists.” In an era of advancing inequality, the significance of his conclusions is of particular relevance in our lives today.