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Decline of the Welfare State

Stagnation – high economic growth coupled with rising inflation

Higher wages were needed to support the KWS, and businesses could not keep up

Increase in trade union suits

Withdrawal of federal funding in social programs (decline in federal transfers to provinces)

An attempt to get workers back into the labour force by diminishing rights of unions (inability to strike)

Toughening the qualifying criteria for social programs

Change in political ideologies of the state

Erosion of social rights, national identity, and democracy

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