Economic Growth in Deficit Crisis - Essay Example

Britain Has a Deficit Crisis, From Which the Only Escape Route Is Economic Growth Table of Contents Introduction 3 Background of the Labour Law in Britain 4 The Collective Laissez-Faire Period (1950s) 4 The Crisis of Collective Laissez Faire and the Regulatory Intervention Period 4 The Individualisation of Labour Law and the De-Regulation Period 5 The ‘Third Way’ Period 5 The Coalition Government and Beyond 6 Critical Appreciation of Issue 6 Employment Status in the UK 6 Employment Law and the Crisis 8 Economic Slowdown leading to stagnation of Growth Prospects 9 Evaluation 10 Conclusion 11 References 13 Introduction With the effective development of economy, Europe has emerged as the leading group of nations in the world. Over the years, the United Kingdom (UK) and other associated nations of Europe have projected sustainable development and prospective growth (Fitzpatrick et.al., 2011). Correspondingly, with the changing time, there have been certain alterations within the needs of the economic system and managing the policies; those are associated with the development of the economy (Clauwaert & Schömann, 2012). The existing policies and the social parameters guiding the economic progression within the nation were efficient until 2007, when the massive meltdown was faced by the UK in terms of the economic crisis. The collapse of the major financial intermediary followed by the improper functioning of the financial market is identified to be the major blow to the economic situation that is prevailing within the nation (Tiraboschi, 2012). With the massive blow on the financial market, there has been an enormous stress, which was experienced by the economy and was identified to be the major reason of the economic crisis and financial turmoil. The impact made its first and foremost effect on the industries directly linked with the banking sector. This economic disruption led to a series of events affecting the economy, nation as well as the people associated with the nation (Tiraboschi, 2012). In this regard, the paper intends to elaborate on a specific issue that was faced due to the crisis, which could be referred to as employment status. The political and the social framework were largely affected by the crisis-situation which has been duly analysed to develop a transparent and better understanding of the employment status. Background of the Labour Law in Britain The British Labour Law dates back to the initial decades of the 20th century. The development of the bill that was associated with the employment law was integrated in the year 1923. This acted as a major milestone and altered the British law for employment. Since its inceptions in the second and the third decades of the 20th century, there have been a considerable number of reforms that were initiated within the initial principles on which the laws were framed. However, there are certain blockages that have made the researchers and decision-makers look into the issues associated with the needs of alteration within the existing legal system and make it adept for the current times (Dukes, 2014). The following sections help in developing a better understanding of the same and attain an insight of the framework on which the current legal system operates. The Collective Laissez-Faire Period (1950s) This was the first and the most significant effect that led to the major alterations in the existing labour law. These alterations were identified to be an impact that was created by the perceptions developed by the lawmakers for development of the existing legal systems (Dukes, 2014). The Crisis of Collective Laissez Faire and the Regulatory Intervention Period The implementation of the different policies in the era of 1950s created an enormous impact on the economic, trade and social development. This has been affecting the prospective growth of the society and creating an impact on the social as well as the operational lifestyle of the people (Collins et.al., 2012). Correspondingly, in the era of the 1960 and after a decade, there has been a huge shift in the operational process, which has been creating an impact on the social domain and affecting the needs of the society (Dukes, 2014). Hence, to develop a transparent social process and for developing the effectiveness of the economy to meet with the needs of the society the changes evident within the society were identified to be undergoing major alterations. The political influences those are evident within the social domain are needed to be re-established based on the legislative formalisation and effective development of the societal needs (Dukes, 2014). The Individualisation of Labour Law and the De-Regulation Period The legislative formalisation that was evident within the decade of 1960-1970 was followed by the individualisations of the labour law. With the technological advancement and development within the means of providing adequate skilled labours, there have been certain developments within the labour law. Thus, the era evidenced the neo-liberal system of labour management. This has been developing the transparencies associated with the needs of alterations evident within the social dimensions (Dukes, 2014; Vettori, 2005). The ‘Third Way’ Period The ‘Third Way’ period refers to the development of the period that was evident for the labour law during the period of 1997-2010. This period referred to the neo fascism period that was evident mostly in all the sector of Europe (Neal, 2004). This era revolutionised the labour management system that was prevalent within the society and affected the social progression. This era reflected on the massive development and enhancement of competitive index. However, with the intensified level of development through globalisation, the era has also witnessed immense level of fall in the economic structure that was prevailing within the nation. This further triggered the needs for development and change that needed to be incorporated within the process of economic development (Smith & Baker, 2015). The Coalition Government and Beyond The Coalition Government was the major alterations that were incorporated within the existing economic system that triggered an alarming situation of unemployment, which has even been evidenced by the British economic system (Turner, 2013). Hence, the need for alterations within the employment law was evident so that the changed economic and social dimensions could be met effectively. The incorporation of red tape challenge and the Beecroft report were a part of the era that is currently prevailing within the economy of Britain (Neal, 2004). Critical Appreciation of Issue Employment Status in the UK Over the years, the leading nations throughout the world have faced different types of crisis, which include political, social as well as economic. However, the extent to which the crisis has affected the economy and the other variables within it of the same has varied over the years. The existing law has undergone various alterations based on the needs of the time and societal changes. According to Beecroft (2014), to meet with the current deficit that has been faced by the economic system of the UK, the only recourse could be ensuring effective economic development. In this regard, Bruun (2015) commented that the employment law that has been operating within the UK has been mainly focused on developing the equality of rights and based on the values evident for maintaining human freedom and democracy. With the changes in the pattern of social lifestyle, there have been huge changes in the situations prevailing within the nations. In this regard, Tiraboschi (2012) commented that the economic crisis that was created in the recent years have been affecting the overall economic system. The youth employment was the area that received an enormous amount of blow as a result of such crisis that was faced by the UK. Furthermore, the crisis was of such magnum aptitude that the same was termed as “déjà vu” by many analysts analysing on the changes of the economic system within the era (Tiraboschi, 2012). With the turn of events during the post-economic crisis of 2007, there was massive change that was initiated within the labour availability leading to the change in the economic system (Fitzpatrick et.al., 2011). According to Bruun (2015), there was a huge level of confusion, which was evident within the people regarding the employment status. Criticising the employment status that was prevalent within the industries of Britain, Bruun (2015) commented that the era pointed on the development of male dominance as the jobs that were available in the market were solely meant for the male section of the society. As per the reports provided by the European Union (2013), the values of unemployment have been multiplying over the four years of post economic crisis. The same has been depicted through the following graph: Change in Employment Rate Source: (European Union, 2013) This continuous and uncontrollable rise in the rate of unemployment is identified to be hinting towards the need of alterations within the existing employment policies (European Union, 2013). The following section provides an insight in the existing policies based on which the organisations in Europe have been operating. Employment Law and the Crisis The existing employment law that was prevalent within the European nations was identified to be mainly focused on the issues such as the workplace discrimination and other prominent discriminations that were evident within the societal domain. The existing legal system that was prevailing within the UK ensured the equal pay irrespective of gender. The law that was prevalent under “The Equal Pay (Amendment) Regulations 1983 and “The Sex Discrimination Act 1975” guided the same. These legal determinations have been amended and altered as per the needs of the time and societal demand over the years (Beecroft, 2011). However, the recent crisis that was evident within the national domain reflected that the employment laws prevalent within the system were identified to be reflecting on a more integrated approach that would lead to the transparency associated with the business (Honeyball, 2014). In this regard, Beecroft (2011) commented that to ensure that employees do not lose their jobs based on any fatal incidents or economic crisis was critical. Additionally, with the development of the notion that progression within the economy is likely to enhance the employment opportunities, it has become an impending need (Painter & Holmes, 2015). Furthermore, the alarming situation that has been imposed by the recent economic crisis ensures that the employment law which is prevalent within the nation could not be considered as appropriate to safeguard the people from becoming unemployed (Fitzpatrick et.al., 2011). Hence, a major alteration within the needs of the law is identified to be mandatory (Beecroft, 2011). Based on the stated views Clauwaert & Schömann (2012) commented that the trade and labour market adjustments were identified to be the most crucial measures taken by the government in the European Union (EU) and Britain. Additionally, it could be identified from the state of events that the failure of the employment law is evident. The same views have been duly affirmed by Elwell (2013) who commented that the economic system, which was prevailing within Britain, faced the most significant downturn that led to the largest recession that the nation has ever faced since the inception of a stable economic system. Economic Slowdown leading to stagnation of Growth Prospects Post recession era has been witness to the massive reformative actions undertaken for meeting with the needs of economic progression and developing the financial and social system. The business entities operating within the nations are identified to be largely affected by the economic meltdown faced during the recent years (Clauwaert & Schömann, 2012). Elwell (2013) commented that the desperate measures taken by the nations were identified to be backfiring at certain instance. One such crisis faced by the UK is the “fiscal austerity” strategies adopted by the EU and the UK reflected to be a bane that pushed the UK into a situation of further crisis (Elwell, 2013). In this regard, the views stated by Corry et.al. (2011) is identified to be having a better and a developed understanding about the probable issues that could have cropped up within the era of economic influence. The views stated by Corry et.al. (2011) reflected that the labour section of the EU nations leveraged on the radicalism stated by the views of Mrs Margaret Thatcher. Evaluation There has been a huge alteration within the economic situations, which was prevailing within UK in the pre and post era of economic meltdown. As per the views stated by Edmonds et.al. (2011), it indicates that the economic meltdown that was faced in the recent era was identified to be creating an enormous blow on the social and the economic system within the UK. The situations were so severe that the government had to provide reconciliation to the short-term liquid money for the banks. The drainage of money was identified to be affecting the overall economic process and creating a further divergence within the existing progress. Correspondingly, Grabham (2013) commented that the business development that needed to be incorporated within the existing system were the sole requisite that could meet with the needs of the pro-austerity needs evident for the Coalition announced by the government. The different aspects stated by Fitzpatrick et.al. (2011) highlighted that the business development was the only recourse that could develop the transparency evident within the business. On a larger note, this could probably revive the financial situation that the economy has been undergoing (Countouris, 2014). The era evidenced enormous level of migration from the European nations owing to the level of crisis and the lack of social support that the country could provide. Somerville & Balaram (2013) commented that the situation further deteriorated with a zero growth in the year 2011 leading to a fall in the development of business enhancing the issues of employment. With the rapid failure of the GDP rate, the need for business development became evident leading to a further fall in economy that enhanced the level of complexities evident for the nation (Pyper, 2015). Being unable to match the steps with the prospective development, it led to a financial crisis that created a backlog within the social dimension and affected the development of the employment opportunity. These negating situations also created a blockage for reviving the existing conditions that were prevalent within the labour market (Crown, 2010). Conclusion It is evident from the various aspects that the economic growth and sustainability of a nation could only be developed based on the business projection. The financial crisis could be identified to be opening up avenues hinting towards a progressive development for the business. Thus, it becomes evident that only with the effectiveness and speed of business development; an economy develops its business prospects and enhances the effectiveness to meet with long-term needs. Correspondingly, the further blockage within the system of development of business is identified to be largely covering the different attributes associated with the employment development. With the effectiveness that is associated with the development of the business, the employment opportunities are likely to enhance the transparency that is associated with the business. Commendably, the effectiveness that could be identifiable for the business is noted to be enhancing the business development and further developing the scope for employment. Furthermore, the rapid fall in the economy could largely be boosted by the enormous business growth in the region, which in turn could enhance the prospects of business development and revive the existing fatalities of the economy. On a further note, the essay has indicated that the growth in business within the nation would further lead to its overall economic development. The path of business development can lead to industrial growth which in turn can facilitate to generate more jobs. Subsequently, a healthy economy with more jobs and employed individuals can provide the requisite boost to the UK economy to tackle deficit crisis in the long run. References Bruun, N., 2015. Social Policy and Labour Law during Austerity in the European Union. Swedish Institute for European Policy Studies, pp. 1-16. Beecroft, A., 2011. Report On Employment Law. Crown pp. 1-16. Clauwaert, S. & Schömann, I., 2012. The Crisis and National Labour Law Reforms: A Mapping Exercise. Working Paper, pp. 1-21. Corry, D. et.al., 2011. UK Economic Performance since 1997: Growth, Productivity And Jobs. Report. 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