chapter 6 - the evolution of modern liberalism

Consumerism:

Purchasing and consuming goods and services is beneficial to individuals and the economy

Income disparity:

Unequal distribution of income among individuals/groups within a society, large gap between wealthy and poor

Inflation

Rate at which prices for goods and services rise over a period of time and purchasing power of money decreases

Monopoly

Exclusive possession or control of the supply of or trade with a commodity or service

Social programs

Government or nonprofit initiatives designed to provide assistance to individuals and families, aiming to meet basic needs

Trickle down economics

Tax cuts and economic benefits for the wealthy and large corporations will trickle down to the rest of the population

Welfare state

State that’s economically capitalist, but government helps regulate economy to ensure wellbeing of citizens

Theo roosevelt’s progressivism: 2

• Conditions inside meat packing plants caused public outcry and promoted Roosevelt to introduce the meat inspection act and pure food and drug act in response to the effects of liberalism on American society

• The US government investigated acts of preferential treatment for standard oil from some railroad companies in 1906

Who was roosevelt’s successor

William Howard taft

What did William Howard Taft do? 2

• Continued roosevekt’s policies

• Put forward legislation to break up trusts

Trusts

Large business conglomerates that formed monopolies

Sherman anti trust act 2

• Introduced in 1890

• Prevents collusion or anti competitive behavior between companies

What did the Sherman anti trust act prevent?

Business entity from owning 2 or more competing companies

1911:

Taft and the Supreme Court used the Sherman anti trust act to force standard oil to break into 34 smaller, independent companies

Although the anti trust legislation act limited some aspects of classical liberalism…

The reforms prevented certain powerful entities in society from abusing the rights and freedoms of less influential organizations and individuals

Credit unions

Small financial institutions that are owned by their members and profits are hsed to offer members better lending rates/lower fees