The expansive welfare society of the 1960s was mainly as a results of Johnson’s initiatives of 1965-1967, referred as the Golden Society (GML 977). According to GML the initiatives provided health services to the poor and elderly, direct food aid to the poor (food stamps), increased government spending in education and urban development. Johnson also set up new cabinet offices and agencies like Housing and Urban Development and Equal Employment Opportunity Commission respectively (GML 977). Such measures greatly increased federal government involvement in the people’s social welfare and nation’s economy. Additionally, the sixties was an era radical changes in the nation’s state of affairs. The Civil Rights movement succeeded in banning segregation
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The slowed growth and inflation (stagflation) and resultant restructuring of the financial system by the Nixon administration taking, America of the gold standard, led to a doubling of unemployment and increased poverty (Lecture 15). This resulted in massive strikes in the 1970s which convinced a group of intellectuals that unions need to be weakened (Lecture 15). This resurfacing of liberalism ideology resonated with a group of predominantly white suburban’s that had escaped the cities due to increased urban violence. They believed that social government programs of the 1960s had produced a decline in moral standards and respect for authority (GML 1028). They claimed welfare did not alleviate poverty, but succeeded in encouraging single motherhood and undermined the work ethic. (GML 1028). In addition, they claimed that high taxes and expensive government regulations undermined economic growth because it drained resources from productive enterprises (GML 1028). This revival of the Gilded Age economic liberalism ideology was termed neoliberalism. Neoliberalists advocated for free market economics, weakening of union control, cutting public expenditure for social services, especially welfare and extensive deregulation. It is important to note that prevalence of neoliberalism was substantially driven by grassroots campaigns from citizen groups (Lecture 15). These include the tax revolt campaign which argued that property taxes were rising faster in comparison to income. In 1978, the people of California passed Proposition 13 which reduced the states revenues by 57% (Lecture 15). Additionally, business groups were lobbying for neoliberal leaders and policies that support business environment (Lecture 12). From a financial perspective, financial institutions like credit companies successfully lobbied for deregulation of interest rates (Lecture 15). These massive entrenchment
The slowed growth and inflation (stagflation) and resultant restructuring of the financial system by the Nixon administration taking, America of the gold standard, led to a doubling of unemployment and increased poverty (Lecture 15). This resulted in massive strikes in the 1970s which convinced a group of intellectuals that unions need to be weakened (Lecture 15). This resurfacing of liberalism ideology resonated with a group of predominantly white suburban’s that had escaped the cities due to increased urban violence. They believed that social government programs of the 1960s had produced a decline in moral standards and respect for authority (GML 1028). They claimed welfare did not alleviate poverty, but succeeded in encouraging single motherhood and undermined the work ethic. (GML 1028). In addition, they claimed that high taxes and expensive government regulations undermined economic growth because it drained resources from productive enterprises (GML 1028). This revival of the Gilded Age economic liberalism ideology was termed neoliberalism. Neoliberalists advocated for free market economics, weakening of union control, cutting public expenditure for social services, especially welfare and extensive deregulation. It is important to note that prevalence of neoliberalism was substantially driven by grassroots campaigns from citizen groups (Lecture 15). These include the tax revolt campaign which argued that property taxes were rising faster in comparison to income. In 1978, the people of California passed Proposition 13 which reduced the states revenues by 57% (Lecture 15). Additionally, business groups were lobbying for neoliberal leaders and policies that support business environment (Lecture 12). From a financial perspective, financial institutions like credit companies successfully lobbied for deregulation of interest rates (Lecture 15). These massive entrenchment