According to Abramovitz (2014), the post-World War II welfare state was the “golden age of capitalism” (p.4). During this period actual income and living standard rose for everyone, the inequality gap between poor and rich become narrower, the middle-class dream of a good job and a good home became more of a reality, more employment and equal opportunity were created, better wage and good benefits were introduced for the workers and sexual equality and civil rights movements were steady. “The expanding welfare state helped to raise the standard of living for many, if not all, U.S. households, especially the white middle class, marked by the growth of both private sector wages and the median family income” (Mishel, 2013). The Social Security Act (1935), The Wagner Act (1935), and the Taft-Harley Act (1947) contributed to social peace and provided political stability by reducing poverty
…show more content…
To cut down welfare was one of the steps because the government were spending high amount for welfare policies and were earning less profit. According to Abramovitz (2011), Neoliberals did not support the welfare state and identified the welfare state as one of the main reason of the crisis. “The welfare state- already an easy target owing to ongoing racism and hostility to the poor” (Abramovits, 2011, p.6). Corporations used a number of tactics to increase their profits such as Layoffs, cuts in wages, reducing hours, demolishing the unions and increasing the use of contract or temporary workers According to Amott (1993), the United States of America focused on globalization and America’s have invested its profit in low-wage areas of the world rather than in the USA, which left the workers in America unemployed. The United States started advocating for “free trade” which allowed them to freely export and import goods and capitals to another country and avoid paying U.S taxes on corporate profits they earned abroad (Amott, 1993,
To cut down welfare was one of the steps because the government were spending high amount for welfare policies and were earning less profit. According to Abramovitz (2011), Neoliberals did not support the welfare state and identified the welfare state as one of the main reason of the crisis. “The welfare state- already an easy target owing to ongoing racism and hostility to the poor” (Abramovits, 2011, p.6). Corporations used a number of tactics to increase their profits such as Layoffs, cuts in wages, reducing hours, demolishing the unions and increasing the use of contract or temporary workers According to Amott (1993), the United States of America focused on globalization and America’s have invested its profit in low-wage areas of the world rather than in the USA, which left the workers in America unemployed. The United States started advocating for “free trade” which allowed them to freely export and import goods and capitals to another country and avoid paying U.S taxes on corporate profits they earned abroad (Amott, 1993,