The purpose of this research is to investigate the following: Northeast of England and Scotland economic situation and government measures; Adam Smith’s and Michael Porter’s theories; Adam Smith’s and Michael Porter’s theories in Northeast England and in Scotland…
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This research will begin with the statement that The recession of 2008 brought enormous impact on the UK economy that affected various macroeconomic variables, especially employment levels in the country. This has initiated intensive discussion about the policies and approaches that can be engaged to help in revitalizing the economy. Several policy makers and socialist have come up with measures like industrial policy, investment in the education, subsidizing particular industries, and among others. However, which of the proposed policies can help the UK to recover from the recession drawbacks. The problem led to rise of different ideas like that of Adam Smith, Michael porter and David Cameron. Thus, the paper will discuss each idea of the above individuals to ascertain their contribution on revitalizing of the economy. Meanwhile, the paper will focus on the state affairs on the ground, and the ways the government is using to restore the economy. Northeast of England and Scotland are facing economic problems due to the recession of 2008 that affect societies and the labor market. Joanna claims that the recession led to the reduction in the economic growth that decreased the GDP in these countries because they could not employ significant measures to curtail the impact. The industrial sectors in Scotland and Northeast England have suffered for lengthy periods due to the problems of unemployment and economic restructuring. Joanna (2011, P. 160) indicate that the deindustrialization had made the regional economic situation weak, and the effect was expected to strengthen as the government sought to cut public expenditure. This was to prevent the individual dependence of these regions on public service jobs. The immediate impact of recession in these countries is the labor market that caused unemployment. This was as a result of decline in aggregate demand that caused private sectors to pay their wages decreased wages in order to meet the economic situation in the labor market. The adequacy of demand and increased unemployment has caused crowding out of the private sectors.
The reduction of wages in private sectors in these regions has limited the growth of demand and caused problems of relative demand shortage. The regional economies of Scotland are closer to full employment level and decreasing of the public sector wages against that of private sectors can enhance the competitive advantage in the private sector. The Scotland and Northeast England are the regions that suffered the most increases in household financial crisis due to the recession. According to Joanna (2011, P. 147), the comparatively rise in unemployment and economic immobility rates caused the decline in households prices that affected their lifestyle. The Scotland and northeast England have the lowest increases of unemployment because they participate in the traditional manufacturing and heavy industries that have suffered disproportionately before recession.
The instant problem of the recession in the two regions was the fiscal damage because all powerful politicians agreed on the requirement for public expenditure cuts. This would undermine the use of state expenditure to support the former industrial in these regions and women’s employment. Meanwhile, the new labor increased expenses on health and education did operate due to the type of undisclosed regional policy implemented. The government helped to expand employment right across the national economy in Scotland and northeast England, but it was significant where private sector job creation was weak. The dispersed expenditure on education and health were equally vital in achieving a new necessity for gendered employment in the regions. Joanna (2011, P. 149) indicates that the payment out of the banks undermined the national business environment and challenged the account of national economic transportation. To change the state affairs in the two regions, their governments have tried to encourage a
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“Northeast of England and Scotland Economic Situation and Government Essay”, n.d. https://studentshare.org/business/1396910-northeast-of-england-and-scotland-economic-situation.
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