“policy Shifts And Their Impact On Gas And Electricity Markets” – The Change in the US Welfare Policy and its Impact on the Economy A paradigm shift can explain the changes in welfare policy under Ronald Reagan and what are the effects of the policy change on the economic success of the people ?
With this quote, Ronald Reagan refers to his predecessor, Lyndon Johnson, who contributed greatly to the expansion of the American welfare state. During the Johnson Administration (1963-69), it was generally accepted that a segment of the population needed special assistance in order to participate in the public welfare. The purpose of welfare to promote and ensure the economic success of its citizens became the main goal. The development of various welfare programs along with increased spending on social services were considered inevitable aspects of society for achieving this goal (Plotnick 1992: 29). It was assumed that the welfare state would continue to expand. However, since the 1970s, the welfare state has faced increasing challenges (Pierson 1996: 143). In addition, the election of Ronald Reagan as the new President of the United States marks a change in the history of the welfare of the United States. Reagan challenged the welfare state consensus, arguing that the nation’s economic well-being would be better served by dismantling and restructuring the welfare state (ibid. ). Under the Reagan Administration (1981-89) welfare policy was changed and replaced by new perspectives on its purpose, including a political call for greater accountability and less state regulation. A statement can be about changes that can create a new policy based on changing the existing system for specific reasons, especially economic ones, also known as symbolic changes. Such a change in the policies of a welfare state can change the economic well-being of its citizens because it involves a change in the self-concept of the state that is no longer the main responsibility for the intentional change of the normal course of market forces by providing social services and financial assistance (Seeleib-Kaiser 2014: 268). Therefore, the question that arises for my research is the following:
“policy Shifts And Their Impact On Gas And Electricity Markets”
Can a paradigm shift explain the changes in US welfare policy under Reagan and did the policy change have an impact on the wealth of its citizens?
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To answer these questions, this paper is divided into five sections. The first part shows Peter Hall’s approach of social learning, which serves as a foundation for this paper and shows that a paradigm shift occurs in three different phases. Second, the method and data used in this paper will be discussed. The analysis, the fourth part, first establishes that there is indeed a symbolic change that has occurred by analyzing the transition to a new welfare agreement that can be seen at all levels of social learning. Through the second part of the analysis, which evaluates the impact of the change of the model on the economic success of citizens, it is clear that no improvement occurred during the presidency of Reagan . In the fifth section the results will be summarized and discussed. The final section briefly describes the legacy that Reagan provided and highlights the limitations of this paper.
Since the 1980s, methods that focus on political education have gained great importance to explain the results of policies and adaptations in the light of the problems and the failure of previous political solutions (Schmidt / Radaelli 2004: 189). One of the most influential theories is “social learning” by Peter Hall (1989, 1993). Hall developed a complex model of policy change to explain the changing paradigm in economic policy in Great Britain in the 1970s. Therefore, the concept is not a general analytical framework (Bandelow 2003: 6). However, his work is considered to be an explanatory contribution and a central method in the field of policy analysis and is the main basis of this paper (ibid.).
The idea is organized by Heclo’s concept of “political education”, which considers that it is not possible to explain the chosen policies as only answers to the current problems but also to show the effects made in previous plans ( Heclo 1974: 305). In a similar vein, Hall has defined “social learning as a systematic effort to adjust the goals or methods of policy in response to past experiences and new information, [which] the learning occurs when policies change because a result of such a process” (Hall 1993: 278). It is considered that the process of policy making is multifaceted and that changes occur through three different stages of social learning (three-order change), which can lead to a change (Pemberton 2000 : 775). A
Occurs when some tools are changed to achieve a set of goals by choosing new tools of policy. These changes in order can be described as routines and routines of decision-making, which adapt policies to the conditions of today (Hall 1993: 279-280). The model is based on
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, which is seen as the highest level of the three-level structure. This change includes similar changes in all three policy areas: the tools attached, the tools themselves as well as the set of goals behind the policy. It involves radical changes of policy or its main goals (Pemberton 2000: 775). The term policy can be defined as a framework of ideas and standards that “specify the goals of the policy, the types of tools that can be used to achieve them, [and] the nature of the problems they must address” (Hall 1993). : 279). This framework, through which policy makers work and communicate, is an impact precisely because many of them are taken for granted.
In the first and second learning, it is considered a learning tool, Hall (1986; 1993) shows the most important to each person. Experts, politicians and social workers are the main groups of a group of community policies and organizations, who start the process of education for different reasons (Haiden: 2008: 23). Because values and fundamental ideas vary, these types of theories are based on the psychological processes within political parties at all times and are not showing any complications. In contrast, the third and the most complete type of education (social education), the paradigm shift in a policy with all its values, norms and causes of communication, requires external forces and public institutions to change a way of relying on policy-based policies. in a longer period (Biegelbauer 2007: 237). Equally, the study of policy in Hall’s approach provides a specific explanation of political change, which not only uses political theory to explain changes in the decisions of the organization of policy instruments, but also the fundamental changes (Bandelow 2003: 8).
The levels of political education are cumulative, meaning that the third change shows other types of education, where the first and second changes do not automatically lead to the third change (Hall 1993: 280). The cross-sectional model of policy learning starts at a level, where a policy is established and established. complete (Feindt 2010: 298). The emergence of a paradigm shift occurs when existing paradigms no longer adequately reflect reality. The implementation of a new model follows different processes (Bandelow 2003: 7). In the first part of the policy that can threaten the development of the poor due to political, economic or social problems that show the poor information of existing practice (Hall 1993: 280). When policy objectives continue to be missed and failures occur, policy makers will try other instrument configurations or new instruments in the second part (Feindt 2010: 299). If the model is still unable to meet the unexpected after adjusting the tools and introducing new things, the authority of the current model is undermined (Hall 1993: 280). The fourth part shows the implementation of a new model based on politics. Finally, the development of political instruments according to the new paradigm allows coordination (ibid.).
In light of the changes that occurred during the Reagan presidency, Hall’s opinion seems to have a reasonable basis. During the 1970s, various economic crises reinforced the idea that welfare was in crisis (Gough 1979, Offe 1984). The election of Reagan as the new President, known for his distaste for expanding the scope of welfare, strengthened the idea that the welfare state could be abolished (Green-Pedersen 2002: 19). . This theory has not been confirmed. However, there was a change. What is more important, the redefining of the structure of the welfare state was established, which leads to the following idea:
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H1: The changes in welfare policy under Reagan can be explained in terms of a change in the tripartite order, reflecting a symbolic change.
It is said to be a cultural shift from a protective welfare state represented by the principle of collective responsibility to a welfare state. it emphasizes personal responsibility and this change is reflected in government policies. According to Reagan, the welfare system created its own need for survival by creating dependencies and violating the self-sufficiency of recipients, even though they would receive the free market is not all people according to his efforts (Hamilton 1990: 51).
Policy changes regarding the amount and nature of (non-) income support programs, the tax system and the development of workers through vocational training programs and general education, can be very large.
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