Social Studies 30-1: Unit 2 Exam

beliefs of socialsm

• cooperation over competition

• resources controlled by public

• fair and equal distribution of wealth

• equality and humanitarianism (lost in classical liberalism)

also has roots in French Revolution and ideas of Rousseau (General Will & collective approach to freedom)

utopian socialists

• believe in perfect society which can be achieved thru modification rather than overthrowing

• developed planned communities to demonstrate benefits of socialism (Robert Owen & Charles Fourier) (ex./ New Lanark)

• advocated for an end to bad working conditions

• all individuals enjoy same advantages

socialist tenets

1. private ownership permits exploitation of the working class, thus, should be avoided

2. state should direct economy = economic equality for all citizens

3. classless society

women in socialism

• Flora Tristan = early socialist, rejected women’s marginalization

• felt their positions were legally similar to serfdom/slavery

• utopian socialists adovcated for profound equality

  • divorce/abolition of marriage

  • fully engaged in workforce (wages, rights)

• advocates for rights of women to become more widespread

development of anarchism

• offshoot of 9th century socialism

• violently lashed out at reps (to end state coercion)

• unfocused violence (enraged authorities)

  • immigrants often targetted (b/c of perceived relations to anarchism)

• anarchy = society w/o government/any other form of centralized authority, belief that people can self-govern

marxists

• Maxism started by Karl Marx

• aka communism/scientific socialism

• based on theory that history = story of evolving class warfare

  • believes strongly in class revolution (b/w proletariats and bourgeoisie) + overthrowing capitalism (violent if need)

• withering away of the state (Friedrich Engels, businessman who supported Karl Marx) = true communism → state no longer necessary + society will be able to govern itself

• revolutionary socialists

Marxism vs socialism

• main diff = the method which they approach dismantling capitalism

  • socialists = evolutionary, peaceful development

  • Marxists = violent rejection of existing order

• marxism = less popular (easily rejected)

  • targeted by state, law, police

• socialism gains support in democratic elections

national progressive party (1912)

• President Theodore Roosevelt

• emblematic of a period of reform + face of progressivism

Progressive Era

• from 1890s - 1920s in US

• oligopoly = market power concentrated in hands of few sellers

• in response to major societal changes like:

  • industrialization

  • vast immigration

  • monopolistic trusts

  • unchecked excesses of laissez-fair capitalism

Origins of progressivism

• response to social problems: long hours, low wages/wealth disparity, child labour, dangerous working conditions, alcoholism

• growing sense of common good (supported by Progressives)

key influences of progressivism

seeking govt intervention to address social problems

• social Darwinism (survival of the fittest in humans) + eugenics influenced some reformers

• unions pushed for collective rights

• Businesses responded to improve working conditions (ex./ Henry Ford, businessman)

Sherman Antitrust Act (1890)

• respond to big monopolies

• sometimes neglected and nullified in different ways → greater intervention in 1900s

• trust-busting = breaking up monopolies to diminish control and re-introduce competition

Theodore Roosevelt

• become president from 1901-1909

• Square deal = domestic program with three major goals: conservation of natural resources, corporate law, and consumer protection (3 Cs)

• trust-busting, national parks, conservation

• puts together bull moose party in 1912

demand side economics (keynsian economics)

• govt spend more money in recession (decline in economic activity) to reduce severity

• less money spent when good economy

John Maynard Keynes = govt has a strong role in balancing economy, should act on shorter timeline (classical liberalists believe that the market should correct itself0

canada’s social safety net

collection of programs/policies that provide financial/non-financial assistance to people in need

• canadian pension plan

• EI

• healthcare (medicare)

• family allowance/CCB checks

• social security (US)

oil shock

• pre-shock (for 25 years) there was an excess if revenue and government spending increased

• in early 1970s, oil prices tripled

  • led to rapid inflation but economy remains stagnant (stagflation)

• Keysian economics was used as an attempt to fix things (higher spending)

  • however, resulted in rapid increase of debt instead

Neo-Conservativism (aka neoliberalism or trickle-down economics)

• influential individuals = Ronald Raegan (Reaganomics) and Margaret Thatcher

• new economic model after oil shock

• less regulation, decreased govt spending, decreased taxes

• belief that if the rich get richer, they will put their money back into the economy

  • didn’t work

• Brian Mulroney (Canadian) implemented GST as a “fair tax” + free-trade agreement with US

Neo-Liberalism (specifically)

• influential economists = Milton Friedman + Friedrich Hayak

• believed that govts were crowding the private sector leading to unproductive economy

• attempted to solve w/ laissez-faire + supply side economics

supply-side economics

• laissez-faire economic principles

• making goods/services cheaper so that people will buy

  • increasing production = reducing barriers like taxes, regulation and increasing free trade

monetarism

• proposed by Milton Friedman

• use of monetary policy (increasing interest rates) to control economy

• deep recessions caused by increases in early 1980s

the roaring 80s?

• economy in late 1980s expanded rapidly

• boomed + gave ppl confidence to invest more

• end of Cold War = free-trade + deregulation globalized

• low-income countries still maintained inequities

  • IMF and world bank instituted structural market reforms

Post 1980s

• economic changes resulted from 2008 housing collapse, harmed economy severely

• great recession = era of relatively stagnant growth in individual incomes

• criticisms of inequal wealth distribution still relevant

  • taxes for wealthy individuals

  • G7 increased corporate tax to 15% and prevented business from moving to tax havens

COVID-19

• introduced extreme, immediate collapse of economy

• wealthy govts used low interest rates and high levels of borrowing to keep economies going

• long-term impacts unclear

Late 18th Century

• radical changes in EU and NA

  • urbanization + rising middle class = consumerism changes

    • disposable income + desire for improvement = middle class

    • middle class expanded rapidly w/ professions becoming more common

Early 19th Century Positives

• widespread public education (to prep for work)

• technological changes

  • communication, transportation, mass production, consumer products

Early 19th Century Negatives

• tech made warfare more efficient (chemical)

• working class struggled in dangerous jobs

  • child labour

  • matchstick girls (girls working in match factories exposed to toxic fume n low wages)

  • radium paints

• crowded substandard housing = slums

  • environment degradation, often affected peoples living conditions (especially if close to industrial centers)

Luddites

• secret organization that practiced military-style maneuvers

• opposed industrial development b/c “threat to livelihoods”

• smashed machinery, asscoiated w/ violence

• felt powerless b/c of minimum wage cuts and lack of organization

Chartists

• working class group calling for political + social reform from 1838-1848

• presented charter (signed by many) for reforms

  • universal suffrage for all men over 21

  • equal-sized electoral districts

  • voting by secret ballot

  • end to property qualification for parliament

  • pay for MPs

  • annual elections

Reactions to Chartists and Luddites

• british govt attempted to suppress (Peterloo Massacre, August 16 1819)

• machinery destructure became a capital crime

• chartist rallies were attacked

• across EU, other govts took similar steps to avoid similar tensions b/w working + ruling class

• after 1860s, liberal reformists expanded franchise + advocated for a social safety net (SSN)

  • In Germany, Otto van Bismark introduced SSN to garner support for his socialist views

Slavery

• classical liberals still viewed slaves = property

• enslavers argued that legally govt should not interfere w/ private property

• slaves + slave trade became central to generating wealth in England and Americas

• 1804, Haiti gained independence but faced harsh retribution from colonial powers

Abolition

• slave trade faced increasing public opposition in late 18th century

  • Olaudah Equiano = popular abolitionist

• early 19th century, opposition to slavery increased on moral and religious grounds

• Britain abolished slavery + intl slave trade in 1833 BUT did not immediately change things

  • matters of compensation became an issue

  • turning a blind eye was accepted

  • indentured labour still existed

goals of progressivism

• improve conditions of life

  • addressed workers’ rights

    • prohibiting child labour

    • implementing broad, public education

    • national health service

• addressed problems to improve well-being:

  • municipal housekeeping = improve living conditions

  • purer water, sewerage, sanitation

  • move away from caveat emptor/buyer beware (buyer alone is responsible for checking the quality of goods before purchase aka regulation)

  • Meat Inspection Law/Pure Food and Drug Act = regulation of food/drug production, inspecting livestock before slaughter

  • moving away from cronyism (employing friends with little justification) in city and state govt.

Woodrow Wilson

• William Howard Taft is briefly President after TR in 1908, following TR’s example (but slight more pro-business)

• Woodrow Wilson elected soon after

  • protects unions

  • works w/ congress to establish Federal Trade Commision (FTC)

  • pressured to support woman suffrage (finally accepted in 1920)

• actively supported segregation

WW1

• US broadens influence as regulator of economy w/ progressive reforms

• Government repression = state control citizens’ political life

  • 1917 Espionage and 1918 Sedition Acts (crime to interfere in war efforts/be a spy)

• Women and Black Americans take wartime employment opportunities

  • The Great Migration = mass migration from rural south to north/west for economic opportunities

  • women in workforce during war

Progressivism in 20s

• some progressives sought to manage social problems by controlling people

  • prohibition in 1920s = limit/ban access to alcohol

  • major expansion of federal authority

• Fordism (Henry Ford) = recomposed tasks, combining individual labours for efficient mass production

• Taylorism (Frederick Winslow Taylor) = decomposed tasks (simplified them) + assigned to individual workers

Roaring 20s

• american investment booms after end of war —> mechanization, urbanization, great migration continues

• Calvin Coolidge (1923-1929 president) = focus on business + less interventionism

  • return to laissez-faire

  • similar to other Republican presidents of the time (Hoover, Harding)

  • moving away from taxes, reducing wages + power of unions

• consumerism

  • abundance of material goods

  • fueled by debt + modern credit systems

  • supports economy

• wealth disparity

  • widespread rural poverty

  • unequal participation in consumer economy

  • 60% of families below poverty line

• Farmers struggle when demand plummeted after war

• Non-White Americans saw few social/economic changes (Tusla Massacre 1921)

Progressivism Overview

• breaking trusts + reforms

• democratization (ex./ womans suffrage)

• industrial reforms (ex./ limits on working hours, working conditions)

• govt intervention w/i specific circumstances

• racism/segregation largely unaddressed (backed by pseudoscience)

Economic Decline

• 1928, American standard of living stopped growing + increasing inventories

• 1929, unpredictable drops and gains in stock market (crash in Oct 1929)

• began great depression

Causes of Great Depression

• debts/loans (from WWI + its settlements)

  • globalization spread instability b/w nations

• agricultural over-supply depressed prices + affected workforce

• industrial inventories higher than ever + falling production = increasing unemployment

• stock market crash → destabilized banking system in US

  • credit crunch = loans are less accessible

• Smoot-Hawley Act = dramatically increased tariffs on imports to US

  • other nations raised tariffs in response

Response to Economic Decline

• herbert hoover administration resisted providing money directly to people

  • encouraged charities in distributing relief

  • relied on local govt to deal with needs of population

  • both quickly became over extended + could not meet demands

Solutions to Economic Crisis

• govt. expanded plans on public works → increase employment

  • had to increase taxes to pay for this

  • did not improve economy, worsened it

• “Hoovervilles” = homeless camps built in parks across US

Deflation

• 1929-1933, prices dropped by 33%

• declining prices further depressed economic growth

  • people began to hoard money to wait for future improved prices

  • demand fell more → more unemployment → reduced prices (cycle)

The New Deal

• Franklin D Roosevelt proposed to “save capitalism from itself”

• implemented programs to put money into hands of consumers

• US govt. began to focus on restoring demand in American economy

Roosevelt’s Plan (New Deal)

• 3 Rs = Relief, Recovery, Reform

• first, closed banks + recapitalized

• alphabet agencies = tackled perceived deficiencies of economy (of all types)

• executive branch was significantly strengthened

• Glass-Steagall Act (1933) = reduced risks in banking system

classical liberalism

• little govt interferance

• govts sole role = protect life, liberty, property

• economic liberalism + freedom of the entrpreuneur

• contributed to Great Depression, wealth gap + political instability, development of counter-ideologies (fascism, communism) —> modern liberalism

modern liberalism

• significant govt interference

• all individuals valued equally

• development of programs to help disadvantaged

• share benefits + develop wisely

Classical Liberalism vs. Communism vs Modern Liberalism

• CL = equality of right (egalitarian)

• Communism = equality of condition

• ML = equality of opportunity (equity)

Positive and Negative Freedoms

Classical liberalism = freedom from govt involvement → NEGATIVE

• freedom of speech (no censorship)

• freedom of religion

Modern liberalism = right to do/have something provided by govt. → POSITIVE

• right to clean drinking water

• right to healthcare

Need for Government Action

• suffrage expanded = more ppl demanded fixes for injustices

• high income govts began social safety nets

• govts were prepared to regulate industries

  • democratic socialism (EU) = socially owned economy alongside democratic political system

  • welfare capitalism (NA) = capitalist economic system including social welfare programs

• until 1970s, citizens of wealthy nations enjoyed significant govt support

• 1980s, SSN come under attack for being “entitlements”

Mercantile system

maximizing exports and minimizing imports to increase a nation’s wealth (trade surplus)

• mercantilists believe in self-sufficiency + national power/control

Run on the banks

many bank customers attempt to withdraw their deposits at same time b/c bank is in danger of collapsing (occurred during Great Depression)

Priming the pump

refers to govt. actions to inject money into economy to encourage growth during period of recession or economic slowdown

• FDR’s New Deal

Inflation vs Hyperinflation

• inflation = moderate, controlled, leads to higher living costs + reduced purchasing power, caused by demand/supply imbalances or monetary policy

• hyperinflation = extreme (more than 50%), total breakdown of currency, collapse of economy, social/political instability, caused by irresponsible govt policies or loss of confidence in govt.

Monetary policy vs Fiscal policy

monetary policy = banks take action to manage money supply, interest rates, bank reserves

• affects cost of borrowing and availability of money

• quick in comparison to fiscal

fiscal policy = govt spending + taxation, managed by govt.

• develops demand in economy

Price System & Market System

price system = price of a good/service determined by supply and demand at the time

market system = buyers and sellers interact by exchanging goods/services, trade system

buying on margin

high risk investing strategy that involves borrowing money to buy stocks

• technically means buying the “margin” (decided by the brokerage) w/ personal funds and being loaned the rest