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UK ECONOMIC CHANGE - Coggle Diagram
UK ECONOMIC CHANGE
Over the last 200 years
The UK is experiencing a period of economic change. This is happening as a result of several factors, including globalisation, government policies and de-industrialisation.
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Government policies. The UK government manages the economy of the UK through the treasury (the place where the UK's money is kept). Yearly, a budget is produced, which sets out things such as minimum wage, spending on public services and levels of tax.
During the 1980s
The government made lots of money via the privatisation of businesses - many state-owned businesses in the UK were privatised - they were sold by the government to to individuals or other companies
The government became less involved in running things in markets - some companies had to find better ways to make profit.
Lots of factories and coal pits were closed. The government could no longer compete with foreign countries were the wages were lower
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In the 1990s the UK economy continued to grow - the government decided to keep taxes low so people had more money and could afford to buy more things
in 2008, there was a global financial crisis + UK entered a period of recession - the government paid money to many UK banks to help them, this was expensive for the country and the level of national debt grew.
since 2010, the government has made spending cuts/carried out quantitative easing/ made attempts to improve productivity - all methods to increase money imports.
De-industrialisation - the decrease in the amount of manufacturing that is taking place, with the result of growth in the quaternary and tertiary sectors
Traditional industries such as ship building and textiles have declined as a result of a global shift in manufacturing to NEEs, where wages are lower, working hours are longer and trade unions are sometimes banned. + mechanisation - increase in the number of machines used to carry out work
Primary, Secondary, Tertiary and Quaternary jobs
Primary jobs - these jobs include obtaining raw materials from our surrounds e.g. mining, farming
around 70% employment in the Pre-industrial era, around 30% in the industrial era, around 12% in Post Industrial and predicted to carry on along those lines of decreasing in the future
Secondary jobs - these jobs include the manufacturing of products using raw materials e.g. working in a textile factory or on an assembly line
around a 10% employment in the Pre-industrial era, around a 22% employment in the Industrial era, around 50% employment in the post-industrial era and predicted to carry on increasing into the future
Tertiary jobs - these include services e.g. a teacher, bus driver, shop assistant (the majority of people in the UK work in this sector at the moment)
around 20% employment in the Pre-industrial era, around 48% employment in the Industrial era, around 30% in the post-industrial and predicted to decrease in the future.
Quaternary sector - these jobs include research and development e.g. a games developer or a scientific researcher
these jobs did not exist until the 2000s, about 8% employment in post-industrial era and it is predicted to rise rapidly in the future
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The North South Divide
many businesses choose to set up in the South of England, which creates a wealth divide
people in the North of England, experience lower income, higher unemployment and a lower standard of living that those living in the South
Jobs in the cities in the South are increasing where as the number of jobs in the North are decreasing
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