Final Review Flashcards
Growth of govt.
steachy drift of power from states to fed govt. with increasing involvement of the federal govt. in American life
Reconstruction
After Civil war, 13, 14, 15 amendments made to free slaves. Afterwards looked at as a mistake by some.
Market System
controlled by private business/ people. Advanced by Adam Smith.
Command System
controlled by govt.
“it is not from the benevolence of the butcher, the brewer, or the baker that w expect our dinner, but from their regard to their own interest”
-“The greater prospect of profit explains why “we are more industrious than our forefathers….Our ancestors were idle for want of a sufficient encouragement to industry. It is better, says the proverb, to play for nothing than to work for nothing.”
Adam Smith
Equity
A goal for economic systems to distribute goods and rewards fairly.
Efficiency
A goal for economic systems to produce the most goods for the most people
Role of govt. in a True Market Economy
- Hold private property sacred
- Actively protect private property from thieves and foreign threats
- encourages investment rather than the “treasure-trove”
- That’s why we have government, to protect private property.
- Provide “public goods” that the profit motive will not encourage: (adam smith argued for this)
- roads, bridges, other infrastructure
- education, culture
- Arbitrate disputes
- Provide the medium of exchange (money)
- In short, an indispensable role but a limited one
- Actively protect private property from thieves and foreign threats
Imperfect Information
Exchanges are made that are not beneficial because they are not based on good info
Monopoly
Monopolist restricts exchange to rais price and profits.
Public Goods
Goods consumed in common where consumption by one individual does not diminish the amount available to others. Consequently, individuals do not have an incentive to provide a public good.
Externalities
Exchanges where some costs and benefits go to a third party not involved
Economic Instability or Recession
Resources are left unused even though full employment/use of resources would be beneficial
Economic Injustice
Winners and losers
Alexander Stephens
Vice Pres of Confederates during Civil War, gave “Cornerstone Speech” that said that both sides were very opposite. Confeds didn’t see black as equal
Conscription
Military drafts
Impressment
The act or policy of seizing people or property for public service or use.
Edmund Ruffin
Edmund Ruffin was a wealthy plantation owner and slaveholder, a Confederate soldier, and an 1850s political activist. He advocated states’ rights, secession, and slavery and was described by opponents as one of the Fire-Eaters
Black Codes
Restricted Blacks (guns, curfews, put children into apprenticeships)
William Lloyd Garrison,
1831: “I WILL BE HEARD!”
-Influenced by African-American abolitionists, embraced immediatism
-Long-term commitment to the cause despite persecution by the mobs in (of course) 1835, etc.
-Was very radical, but very perseverant in the cause. 35 years in the face of very discouraging odds.
(Said about the Const.= Garrison, “a covenant with death, and agreement with hell, “ a proslavery compact.”
Adam Smith
- the pursuit of self-interest in capitalism is based on Rational behavior. Rational behavior is predictable. This person is going to react self interested and that’s what they will always do.
- Wrote the Wealth of Nations
- “Invisible Hand” Economy will regulate itself
Mercantilism
Stockpile gold and silver, encourage exports, discourage imports
Comparative Advantage
Economic principle in which producers specialize in the production of goods where they have lowest opportunity cost.
J.P. Morgan
Financed the worlds first billion dollar corporation a steel company
