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Deindustrialisation - Coggle Diagram
Deindustrialisation
why and how it happened
institutional and policy factors
Thatcherism
free market policies
neglect of manufacturing sector
Argument: decline of Keynesianism
increased inflation but no effect on unemployment or output
Argument: high marginal tax rates less investment
Argument: supply-side policies
nationalisation of industries led to decreased competition
Argument: Increased oil prices
Arab-Israeli war. Arab countries increased oil price
consumer demand shifts towards services sector
benefits
Argument: it is a feature of successful countries
Argument: it is a result of higher productivity. employment decreases
advances in services sector lead to higher living standards
increased employment in the services sector
Rebuttal: service sector had lower productivity so it had to have larger employment to keep up.
drawbacks
Argument: decline in manufacturing indicates lower share of GDP
UK share of world manufacturing not doing as well
Argument: It is a relative decline
compare to USA. Leading services sector: 56% employed in 1960
what it is
most pronounced during 1950s to 1970s
a secular decline in the share of manufacturing in national employment