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Ratchet wheel. The growth of public expenditure in the united kingdom. This theory holds that during crises governments. A ratchet effect is an instance of the restrained ability of human processes to be reversed once a specific thing has happened analogous with the mechanical ratchet that holds the spring tight as a clock is wound up.
In the 1980s economist robert higgs developed the ratchet effect theory to explain crises like the one we are currently experiencing. Peacock and wiseman found that public spending increases like a. The ratchet effect first came up in alan peacock and jack wisemans work.
It is related to the phenomena of featuritis and scope creep in the manufacture of various consumer goods and of mission creep in military planning. Higgs 1987 noted that the expanded role taken on by the state during the new deal period remained largely in place once the crisis passed leading to a ratchet effect in which government agencies expand to exploit perceived short term opportunities but fail to retreat once circumstances change.
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