Unit 3: Evolution of Liberalism

Question 1

Industrial Capitalism

Answer 1

an economic system that relies on investment in machines and tech that are use to increase production of marketable goods

downside;

• inequality
• limited rights for workers
• child labour

Question 2

Problems created by classical liberalism/industrial revolution (6x)

Answer 2

poor working conditions
child labour
inequality
poor living conditions
poverty
environmental damage

Question 3

Classical Conservatism

Answer 3

belief that the past should be respected, society should be a hierarchy, gov should be selected from a limited electorate and the stability of society is the key goal

Question 4

Karl Marx

Answer 4

believed that social injustices/inequalities from the industrial revolution couldn’t be fixed by capitalist democracy. As long as one class of ppl. owned land, factories, and mines, they would always exploit those who worked for a living

Question 5

The Luddites

Answer 5

industrial revolution put textile workers out of jobs, they formed an army focused on destroying the textile machines until a law passed making machine breaking a capital offence

Question 6

Chartism

Answer 6

believed that individual rights and freedoms didn’t benefit enough people and gov failed to deal with the negative impacts of the industrial revolution, their main goal was universal suffrage for men over 21

Question 7

Utopian Socialism

Answer 7

believed in child education not labour and better working conditions, their main belief was that private ownership of production permits exploitation the state should direct the economy to achieve economic equality for all and society should be classless

Question 8

Marxism

Answer 8

believed revolution is needed to overthrow liberal society abolish private property and the government should have total control over the economy

Question 9

Welfare Capitalism

Answer 9

classical liberal economic system and legislation that protects workers needs/righta

Question 10

Business Cycle

Answer 10

1. Recession
2. Boom
3. Bust
4. Recovery

Question 11

Effective Demand

Answer 11

supply and demand only works when consumers have purchasing power

Question 12

Keynesian Economic Theory

Answer 12

when times are good people spend freely causing inflation and oversupply of goods no one wants to buy

When times are bad no one wants to spend/invest creating a downward spiral

Question 13

Civil Liberties

Answer 13

means by which modern liberals seek to maintain dignity and fair treatment for all

Question 14

Positive freedoms

Answer 14

thought of as the freedom too… instead of the freedom from…

Question 15

Labour Standards

Answer 15

government enforced rules/standards aimed at safe and clean working environments, protection of workers rights to association, collective bargaining, and freedom of discrimination

Question 16

Mixed Economy

Answer 16

economic system based on free market principles but with some gov-intervention usually to regulate industry, moderate boom/bust of business cycle, and ofer social welfare programs

Question 17

Welfare State

Answer 17

a country that is capitalist but intervenes in market stability and basic standards of living

Question 18

Fiscal Policy

Answer 18

the use of government expenditure and taxation to influence the economy

Question 19

Inflation

Answer 19

persistent increase in the level of consumer prices along with a persistent decline in the purchasing power of money

Question 20

Demand Side Economics

Answer 20

government involvement in the economy to increase demand for goods and services through government fiscal and monetary policies. Demand-side economics are associated with Keynesian economics.

Question 21

Supply Side Economics

Answer 21

policies intended to increase economic productivity by
as little government intervention in the economy as possible through reduction of gov deficit, spending, and business taxes

Question 22

Deficit

Answer 22

more liabilities or debts than income or assets in a given period

Question 23

Democratic Socialism

Answer 23

ideology where society moves towards greater collectivism through citizens voting for policies in which society as a whole benefits from economic activity.

Question 24

Monetary Policy

Answer 24

a set of government economic actions concerned with controlling the supply of money and credit usually through interest rates