Global Social Problems: Exam 1

The Success of Keynesianism & The “Golden Age” of Capitalism

• Started around the 1940s-1960s

• Interventionist state

• Economic growth/ Wage growth

• Social Safety Net

Rise of the American Middle Class

What is The Success of Keynesianism & The “Golden Age” of Capitialism is also known for?

The Rise of the American Middle Class

Shift to Neoliberalism: Stagnation

Stagnant demand, high unemployment, high inflation

Shift to Neoliberalism

• Stagnation

• 1970s (Abandon the gold-based monetary system)

  • Trade Deficit: Paying for imports with gold reserves

• Oil crisis because OPEC was formed

• Public Debt

• Decreased power of the economic elite

Neoliberalism (Adam Smith, David Ricardo)

The free market can take care of all of our needs:

• Self-regulating mechanism; Supply and demand, rather than central planners

• The rationality of the free market; constraints interfere with natural efficiency of markets, “fittest” rise to the top

Neoliberalism: Less Government Role in Economy

• Privatization (Pro-business)

• Deregulation

• Low taxes/austerity

• Free trade, get rid of tariffs on imports ad other barriers to trade

Conflation of market freedom and other types of freedom (press, expression, democracy)

Neoliberalism: Education wise

• Standard testing

• Parents pick out Schools

Conflict Theory Defintion

Society involves sets of competing interest groups; social order is based on conflict, coercion, and power

Example: Worker-Capitalist Exploitation, Labor Strikes and Unions

Karl Marx: Conflict Theory

Those who benefit (Bourgeoisie) are motivated to maintain it

Bourgeoisie Example: Business owners, merchants, and wealthy people

Proletariat: The working class who own no means of production and must sell their labor for wages

Poletariat Example: Farm Hands, Transport Drivers

Bourgeoisie Definition

Capitalist class that owns factories, large offices, and financial capital (major assets)

Fake Consciousness Ideology by Karl Marx

Working class people are lead to adopt beliefs and values that hide their exploitation

Example: Consumerism

Class Consciousness by Karl Max

The awareness born out of collective struggle

Example: Labor Union Strikes