This website uses cookies to ensure you have the best experience. Learn more

Explain Why The Manufacturing Sector In The British Economy Has Declined Since 1979? What Steps Are Currently Being Taken By The Government To Arrest This Decline?

2186 words - 9 pages

Since the industrial revolution manufacturing has been a vital component of the British economy. In the nineteenth century the UK was the worlds largest manufacturer, however, in the last hundred years Britain's share of the worlds manufacturing output has declined, a decline which has perhaps been more apparent over the last thirty years than before.There are several theories as to why manufacturing in the UK has suffered so badly, one of which is the "Maturity Thesis". One aspect of this theory draws attention to the fact that Britain, as the worlds oldest industrial economy, is experiencing a fall in manufacturing so that capital and labour can be redirected to service industries which are demanded more today. This shift in the economy from secondary to tertiary draws parallels with the movement from primary to secondary industries experienced in the eighteenth and nineteenth centuries . It is argued that as society demands more from the service sector, for example; childcare and cleaning services, the manufacturing sector will decline.Table 1.0: Changes In Industrial EmploymentSource: Griffiths and Wall p 11Analysing the data in table 1.0 the evidence supporting the maturity thesis does not appear to be too strong. While some industrialised countries such as Austria, Belgium, France, Italy, Norway, Sweden, and Switzerland experienced falls in industrial employment similar to those experienced in the UK, other industrialised countries such as Canada, the USA, Japan, Germany, and the Netherlands have not followed the theory, and have actually experienced rises in the level of employment in industrial industries. Furthermore, it is the economically stronger countries like the USA, Germany and Japan that have experienced increases, this suggests that the decline in manufacturing in the UK is not due to an inevitable economic processes like economic maturity.Another popular theory accounting for Britain's decline in manufacturing is that of crowding out. It argues that the market in the UK has been crowded out by the public sector which has experienced a large increase since World War II. This crowding out is a problem for the whole economy because the public sector does not create market output that can be traded, furthermore the public sector has created an environment which is not favourable for manufacturers in the private sector. Raising the necessary revenue to fund the services has lead to higher taxes, higher interest rates, inflationary pressures and balance of payment problems, all of which have lead to low investment in the private sector. A good example of this is the recent rise in National Insurance tax in order to increase funding for the National Health Service. Rises in tax like the National Insurance one, takes revenue away from firms which they might otherwise spent on improving productivity through investment in research and development (R&D). However, while the 'crowding out' thesis provides a convenient answer to the...

Find Another Essay On Explain why the manufacturing sector in the British economy has declined since 1979? What steps are currently being taken by the government to arrest this decline?

Why Globalization Manufacturing Since The 1980's Has Changed Labor Relations

951 words - 4 pages What effect has globalization impacted upon labor and employment, regarding towards unions since 1980's? "The increasing integration of world's economies, including the movement to free trade", is called Globalization and with this statement we can understand, the more intermingling with economies, the more globalization exists and grows (Mankiw; krugman, 2007, p.193). Because of the spike in globalization, and the dependency of international

What are the main reasons why women are more likely to be in poverty than men since 1945

455 words - 2 pages Causes of Poverty to WomenThe feminisation of poverty has meant a higher percentage of women than men are likely to experience poverty throughout their lives (TUC). Society views a husbands income as primary to be shared amongst the family and a wife's role as domestic worker and carer (Brown: 1983). The male control of economic power within the family can cause unequal resource access, with acute cases resulting in a wife's poverty when her

This is an essay based around the prompt "what steps would you have taken differently to prevent pearl harbor?"

927 words - 4 pages taken and so many lives would not have been lost. This lack of coordination and communication between the government and the military proved to be one of the most devastating causes of the surprise attack. I would advise the government and military to be in complete communication with each other to prevent further surprise attacks from happening.December 7th, 1941, marks the event which caused American involvement with World War II. A surprise

In what ways and why is knitting currently being used to make a political statement

796 words - 4 pages have a long history of activism (knitting revolution). Many people aren’t putting the political statement directly onto their work but they are challenging heated topics to raise awareness. Knitting for charity has become another common thing for knitting groups. Here is an example of a large group of knitters that have taken part in charity knitting. 1 knit a London knit shop, joined with water aid to raise awareness of the 1 billion people

Describe what is included in each of the components of GDP. (You may exclude government spending.) Explain how each component of GDP is influenced (and why) by other variables in the economy

511 words - 2 pages GDP = Consumption + Investment + Government + (Exports - Imports). Consumption spending by individuals, by far the largest portion of GDP (± 70%), includes goods and services used up in a relatively short period of time. These are goods and services which people buy on a regular basis, such as food, entertainment, rent, clothes, and gas. Investment spending accounts for the second largest portion of GDP (± 15%). These are goods and

How has the judicial role changed in British politics since 1945?

2079 words - 9 pages the courts existed mainly to interpret policies made by the other two branches with no real powers to strike it down. In more modern time, this is true in theory as opposed to in practice. The judiciary has been seen to be neither as subordinate nor as independent (in terms of being separate from political processes) as prescribed in theory. Judicial review has been significant in giving the judiciary a more powerful role in the process of policy

Why Female Interest in Engineering and IT Careers Has Declined

2331 words - 10 pages to fill half of its available jobs with computer science graduates from U.S. universities. This problem intensifies as the industry is failing to attract women who are well positioned to move into these open jobs. Ever since 1991, the participation by women in the IT industry has dramatically declined, while the percentage of jobs held by women in other scientific fields has increased (NCWIT 2009). The Women in Technology Foundation stated that

'Old age and death are especially subject to social taboo in contemporary society?' Explain why this is the case

3003 words - 12 pages Old age and death are especially subject to social taboo in contemporary society?' Explain why this is the caseIt may be useful to first define the two main terms that will be studied. The first term is death; the Collins Dictionary defines death as the 'end of life'. Clinically this defined as there is a lack of heartbeat and breathing along with lack of central nervous system function which includes reflex activity and environmental

The ‘peopling’ process of Australia since 1788 has been dominated by a racist discourse. Is this a fair statement? Why/why not?

564 words - 2 pages time paid work. By 1990s belief in Anglo-Saxons, white women symbols was faded. Assimilation were replaced by multiculturalism in the last quarter of twentieth century . common bond reflect rhetorically the bond of British nationality. Australia government federation looked to a pre-multicultural society, was treated with suspicion and paronia, however the contemporary federal government encourages individual to gain the citizenship. THIS history suggests the battle for the citizenship and the emptiness at its heart, still ethnic diversity and indigenous incorpate remains a silencing key and pressing issue which promote a provincial standard of the nation

This project is proving an online solution for the consultant company to change the process that they are currently have

5806 words - 23 pages being added to the database. It includes all the business logic, which is a set of rules to manage the process of application. For example, the primary keys of each table and the level of security are defined in this tier.3. Data Service (tier-3)Accessed through the middle-tier objects and never directly by the client application. It manages and provides access to the application data. It involves the processing on the database through Microsoft

Explain the main features of the Spartan Economy. This essay explains the features of the Spartan economy in ancient sparta that contributes to their austere lifestyle

1181 words - 5 pages In Sparta, the economy meant two things : the system of wealth creation and the state of the countrys prosperity. The economy has four essential features, natural resources, economic objectives (military state), distribution of land and the roles of Perioikoi and Helots. These features are inter-related and work together in order to achieve the economic objective, which was to maintain a military dominance. This priority of maintaining a

Similar Essays

Why Has Trade Union Density Declined In So Many Countries Since The Early 1980s?

2465 words - 10 pages collective bargaining of nurses and teachers are examples of where this representation is highly important. Main body “Declining trade union density is a feature of most, though not all, developed countries in the last quarter century.” (Ebbinghaus, 1999). The OECD average for the decline in trade union density since 1980 has fallen from 33% in 1980 to 17% in 2012. (OECD, 2014) Whilst some countries, particularly the Scandinavian countries (Norway

With What Success Has The British Government Tried To Deal With The Irish Troubles Since 1972?

2449 words - 10 pages too sudden; the Loyalists had no chance to familiarise themselves with the idea of being ‘ruled’ by Dublin.The beginning of the 90’s brought the final attempt to lessen the duration of Direct Rule; the Downing Street Agreement of 1993. This was also the first attempt made at peace in the 90’s.•It was agreed between the British Prime Minister John Major and the Taoiseach, Albert Renyolds•There were to be talks with the

What Steps Are Being Taken By The Singapore Transport Authority So As To Have A Better Transport System And Ensure A Sustainable Future?

985 words - 4 pages a second thought. Since, a majority of people within Singapore continue to use the public transport the Government continues to bring about changes to ensure improvement in the system ensuring people to be satisfied and reassured. Other than the four lines that already exist, the Land Transport Authority of Singapore has plans to initiate two supplementary lines in three stages each between the years 2013 and 2021. Research Question- What steps

Explain Why The Khmer Rouge Became Such A Significant Force In Cambodia By 1979

2259 words - 9 pages 'Explain why the Khmer Rouge became such a significant force in Cambodia by 1979.' Respond to this statement in approximately 2000 words.When Cambodia was retitled Democratic Kampuchea in 1975, the alteration of title not only signified the acquisition of the nation by a recently instated governing force, but also heralded the destruction of the country's history, technology and over 1.7 million lives at the hands of what had become the most