Leah Kemmerer - Summative Review - 10696187
Industrial Growth & Repair Study Guide ECONOMICS 101
Definitions
Interdependence: A give/take relationship between varying groups of people.
Scarcity: The problem that arises due to our unlimited wants but limited resources.
Trade-offs: The need to forego one or more desirable outcomes in exchange for increasing or obtaining other desirable outcomes.
Opportunity Costs: The cost of an alternative that must be forgone in order to pursue a certain action; akin to a sacrifice.
Economic Systems
Traditional Economy
Based on tradition and established patterns.
Primarily agricultural (e.g., African tribes).
Market Economy
Individuals, not the government, determine production based on supply and demand.
Focus on consumer goods (e.g., United States).
Command Economy
Strong central government dictates production decisions.
Emphasizes industrial and military goods (e.g., Russia, China).
Mixed Economy
Combination of traditional, market, and command economy features.
Economic and Social Goals
Differentiation in prioritization based on the economic structure:
Capitalistic societies prioritize consumer benefits.
Socialist and communist societies focus on government benefits.
Unions
Comparison of AFL & Knights of Labor
Both sought shorter workdays:
AFL: Excluded immigrants, African Americans, and unskilled laborers.
Knights of Labor: Inclusive of all workers.
Worker Complaints
Concerns included machinery replacement, poor working conditions, layoffs, wage cuts.
Role of Government
Government often sided with business owners, using force to end strikes.
Arrested strikers under the Sherman Antitrust Act for limiting free trade.
Workplace Tragedies
Homestead Strike
Workers were shot at while barricading to demand shorter hours and better conditions.
Highlighted the government's disregard for labor struggles.
Triangle Shirtwaist Fire
Poor safety precautions led to a devastating fire with significant loss of life (146 out of 360).
Resulted in enforced safety protocols (e.g., doors opening outwards).
Labor Struggles
Haymarket Riot
Workers rallied for shorter hours; a bomb was thrown.
Illustrated police corruption and harmed union reputation (8 arrests, 6 fatalities).
Pullman Strike
Triggered by layoffs and wage cuts; led to public discontent towards labor movements.
Reinforced perceptions of class conflict severity.
PROGRESSIVE ERA
WEB Dubois
Advocated for immediate equality for African Americans; co-founded NAACP.
Booker T. Washington
Believed African Americans should earn respect gradually through education.
Muckrakers
Journalists who exposed societal problems to induce reform.
Ida Tarbell
Investigative journalists revealing injustices of Standard Oil.
Upton Sinclair
Authored "The Jungle," exposing the meatpacking industry horrors.
Jacob Riis
Photojournalist whose work captured the poverty in urban slums ("How the Other Half Lives").
Thomas Nast
Created political cartoons to educate the public on corruption.
Pure Food and Drug Act
Result of muckrakers' efforts; mandated accurate product labeling to protect consumers.
Square Deal
Policies aimed at promoting equal opportunities across various socio-economic groups:
Small businesses as trust busters.
Regulation of good trusts for big businesses.
Consumer protections through Pure Food & Drug Act.
Support for labor in negotiations.
New Freedom
Policies aimed at promoting fair competition:
Stronger antitrust initiative (Clayton Antitrust Act).
Lowered tariffs and created federal reserve to stabilize economy.
Trustbuster
Focused on dismantling harmful monopolies while regulating beneficial ones via the Sherman Antitrust Act.
Conservation
Primarily associated with Theodore Roosevelt’s efforts to protect natural resources.
William Taft
Enacted workplace reforms, including the 8-hour workday and child labor laws; expanded trust regulation.
Bull Moose Party
New political party formed by Roosevelt to distance from traditional parties.
ROARING 20’s
Key Terms
Consumerism
Focus on consumer rights enhances spending and GDP but can lead to negative mental and financial health.
Installment Buying
Allows payments over time, potentially leading to overexpenditure and credit issues.
Laissez-Faire
Government adopts a hands-off approach to economic management.
Buying on Margin
Investors buy shares with borrowed funds; involves risks like margin fees and financial losses.
1920s Economy (Positive Aspects)
Significant economic growth, increasing wealth due to banking investments.
1920s Economy (Negative Aspects)
Contributed to the Great Depression due to overextension in spending and borrowing.
GREAT DEPRESSION
Bank Failures
Resulted from the stock market crash; citizens lost savings and led to lower spending.
FDR Philosophy
A risk-taker prioritizing government intervention to support citizens in crisis.
Hoover's Philosophy
Cautious and fiscally conservative, prioritizing limited government intervention.
New Deal
Series of programs aimed at relief, recovery, and reform in response to the Great Depression.
Relief
Immediate aid to alleviate panic without solving underlying issues.
Recovery
Focused on economic enhancement through job creation.
Reform
Aimed to prevent future economic crises by addressing root causes.
New Deal Program Purposes
Bank Holiday: Relief by securing depositors' savings.
FERA: Relief through federal funds for unemployed.
Civilian Conservation Corps (CCC): Recovery through environmental conservation and job creation.
Works Progress Administration (WPA): Recovery with creative projects for employment.
National Recovery Administration (NRA): Recovery by regulating production and promoting ethical business practices.
Agricultural Adjustment Act (AAA): Recovery by regulating agricultural output to stabilize prices.
Tennessee Valley Authority (TVA): Recovery through infrastructure development in impoverished regions.
Federal Deposit Insurance Corp (FDIC): Reform ensuring bank deposits are insured.
Truth In Securities Act: Reform mandating transparency for investors.
Social Security Act (SSA): Reform providing financial security for the unemployed and elderly.
Dust Bowl Impacts: Economic devastation in agriculture; significant social and political ramifications due to displacement.
Economics by Decade
GI Bill: Offered veterans new opportunities post-WWII, significantly impacting society.
Interstate Highway: Facilitated suburban growth and efficient transportation.
Great Society: Comprehensive initiatives targeting education, healthcare, and poverty concerning racial equality.
Reaganomics: Economic policies prioritizing tax reduction and free-market principles; led to significant societal changes.
Great Recession: High unemployment, financial instability, and reduced credit availability led to widespread economic distress.
1970s Stagflation: Economic crisis defined by high inflation and unemployment, fueled by decreased manufacturing and oil supply.
1990 Industry Employment Crisis: Massive job loss due to decreased production; impacts on poverty levels and living standards.
Globalization: Transformed international trade dynamics, broadening economic interaction and labor markets.
COVID Response: Government interventions dramatically reduced food insecurity and supported unemployment, aiding recovery efforts.
UNIT REFLECTION
Connections between Units
Analysis of social events reveals their impact on economic policies, highlighting interconnectedness between social conditions and economic responses.