Economic Systems and Industrial Revolution

Flashcards for vocabulary review from lecture notes on economic systems and the industrial revolution.

Mercantilism

An economic system during the monarchies of Europe that involved complete government control of the economy.

Classical Liberalism

An ideology based on economic freedom and limited government intervention, with prices set by supply and demand.

Invisible Hand

The idea that the market would self-regulate without government interference.

Monopoly

A market dominated by a single seller, leading to higher prices due to lack of competition.

Domestic System/Cottage Industry

Small-scale production in one's home, requiring skill to make an entire product.

Economies of Scale

Lowering average cost through increased production such as offering specialization of labor.

Oligopoly

An appearance of competition, but no actual competition, often owned by the same companies.

Industrial Revolution

A massive change/transformation in how products are made, starting in Britain in the 1750s.

Unfettered/Unregulated Capitalism

Capitalism with no government intervention or interference.

Luddites

Skilled workers who lost their jobs and protested technology by destroying machines in factories; term used to describe someone anti-technology.

Laissez-Faire

"Leave it alone, work on its own," the idea that government intervention will only worsen economic problems.

Progressivism/Modern Liberalism

An ideology advocating for government involvement in the economy to protect workers' rights.

Keynesian Economics

An economic theory advocating government intervention to protect citizens from extreme highs and lows of the business cycle.

FDA (Food and Drug Administration)

An agency that sets and enforces standards on food and drugs to protect citizens from harmful products.

Deficit Spending/Financing

Spending more than making; occurs when governments spend more money than they receive in revenue.

Inflation

A general increase in prices and fall in the purchasing value of money.

Malthusian Check

A disaster that reduces population to balance with food production, as predicted by Thomas Robert Malthus.

Protectionism

High tariffs on imports meant to protect domestic jobs.

Economic Liberalization

The opposite of protectionism; involves free markets and reduced trade barriers.

Hoovervilles

Slums set up by unemployed Americans in city parks during the Great Depression as a sign of protest against President Hoover.

Alphabet Agencies

Government agencies created under FDR's New Deal to provide jobs and stimulate the economy.

Trickle-Down Economics

The belief that benefits received by the wealthy will trickle down to other segments of society.

Welfare Capitalism

Social programs are provided by private businesses.

Welfare State

A country with a government that provides social programs.

Stagflation

A combination of stagnant economic growth and high inflation.

Supply-Side Economics/Neoconservatism

An economic ideology focused on tax cuts for the rich, cuts to social programs, and deregulation to stimulate the economy.

Austereity

Cuts to social programs

Privatization

Selling government-owned businesses to private companies.

Deregulation

Fewer regulations on business, factories, and banks.

Crown-owned corporation

Something owned by the Government; Publicly owned

Monetarism

Establishing a central bank to control the supply of money and fight inflation.

Subprime Mortgages

Mortgages with better interest rates than prime mortgages, but higher risk.

Derivative

Financial instruments, like subprime mortgages, traded on the stock market.

Corporate Welfare

The idea that big banks received money vs the people who need help, but don't receive it from government.

Socialism

A mixed economic system combining free market ideas with government involvement.

Communism

Complete government control over the economy, aiming for economic equality.

From each according to his abilities, to each according to his needs

Karl Marx. no one unemployed in communism, everyone's basic needs will be met, everyone has a job, food, house, no bills worries however not living a lavish, extravagant lifestyle, basic necessities are met.

Progressive Income Tax

Tax structure where higher income earners pay not only more taxes, but a higher percentage of their income in taxes.

Redistribution of Wealth

Government policies to transfer wealth from the rich to the poor through social programs and taxation.

Indicative Planning

Government provides predictions for the economy, which businesses can choose to follow or ignore.

Equality of Outcome

Everyone's outcome is the same, everyone has a job and be able to provide for family

Perestroika

Economic reforms; allowing some elements of capitalism to exist such as private ownership, property, profit motive.

Glasnost

Political freedoms; ability to criticize government.

Five year plan

Goals/production targets that had to be met by the end of 5 years, the focus was heavy on industries, like coal, iron, electricity, oil.

Holodomor

Ukraine Famine 1932-1933