post 1920 USA

Question 1

when was americas industrial revolution?

Answer 1

1865-1930

Question 2

what are the key ingredients of success for the industial revolution in america?

Answer 2

good inclusive political and economic insitutions
large unified single markets
the american system of manufacturing ( mass large scale production)
natural resource abundance
infant industry protectionist policies
technological progress
role of property rights and entreprenuers
human capital accumulation (mass education)
scientific management and buisness education
limited involvement in WW1 protected them from worst effect

Question 3

what are the 5 examples of great invention clusters of the second industrial revolution?

Answer 3

1. Electricity 1879 light bulb (Thomas Edison) led to refrigeration and airconditioning
2. Internal combustion engine - modern transportation (Henry Ford) - airflight
3. Petroleum - natural gas – chemicals - pharmaceuticals
4. Communications and entertainment telegraph (1844) , telephone (1876),photography(1880s), radio (1899), movies (1880s), TV (1911)
5. Water supply, sanitation and modern plumbing

Question 4

what was joseph schumpeter main theory?

Answer 4

he gave great emphasis to the role of entreprenuers in the process of dynamic change. he believed that technological progress are the key to progress. this process is called the creative destruction

Question 5

what were the three types of entrepreneur analysis of entreprenuership?

Answer 5

productive - Bill Gates
unproductive - Al Capone
destructive - Kim Jong-un

Question 6

what were the 8 main possible causes of aggregate demand collapse?

Answer 6

1. The Wall Street Crash Hypothesis (Galbraith, 1954)
2. The Exogenous Consumption Decline Hypothesis (Temin, 1976; Romer 1990)
3. The Investment Hypothesis (Keynes, 1931)
4. The Trade Hypothesis (Smoot-Hawley Tariff 1930)
5. The Money Supply Contraction Hypothesis (Friedman And Schwartz, 1963)
6. The Monetary Fiscal Mix “Golden Straight Jacket” (Gold Standard) Hypothesis(Eichengreen, Bernanke-Temin)
7. The Consequences Of WW1 Hypothesis (Temin, 1989)
8. The Supply-side Hypothesis – Falling Productivity (Cole And Ohanian, 2002; Prescott,2002)

Question 7

what are the main events that occured in the usa post great depression?

Answer 7

WW2, americas great peacetime inflation,911
2006 housing bubble burst,

Question 8

what are the causes of rising inequality in the USA?

Answer 8

Skill biased technological change favours individuals with college education
school education system performing poorly
Globalization - cheap imports (H-O prediction)
Policy changes - tax and benefit policy
Falling trade union membership

Question 9

if education is growing slower then technology then what is the effect on inequality?

Answer 9

inequality is rising

Question 10

if education is growing faster than technology then what is the effect?

Answer 10

there will be falling inequality

Question 11

what does J stiglitz theory say will happeb in america?

Answer 11

Social capital and trust hold societies together “if certain groups control the political process, they will use it to design an economic system that favours them ”Trust in government has been eroded in the USA
Rising inequality a major contributor to this development
Result - reduction in political participation (voting) and rise of populists and extremists (also in Europe!)

Question 12

what are the headwinds that are slowing the US growth in the 21st century?

Answer 12

Polarisation of political progress
Persistent racial divide
End of demographic dividend
Inequality
Interaction between globalisation and ICT - outsourcing
Energy and environmental factors
Private and public debt overhang
Education/health: cost disease