Unit 4: Modern Liberalism

Question 1

When did modern liberalism start to develop

Answer 1

• after the great war 1

Question 2

consumerism

Answer 2

• production of consumer products
• an economic theory that argues that the interests of consumers should be the most important factor in a business transaction

Question 3

roaring twenties

Answer 3

a decade of economic growth and widespread prosperity, driven by recovery from wartime devastation and deferred spending, a boom in construction, and the rapid growth of consumer goods

Question 4

henry ford

Answer 4

pioneered welfare capitalism

Question 5

did usa want to be involved after wwi

Answer 5

• no
• they had US policy of isolationism

Question 6

social values after wwi

Answer 6

• women suffrage
• first nations group in canada
• increased urbanization
• income disparity
• anti-immigration movement
• segregation

Question 7

market forces

Answer 7

• the factors that determine the price and availability of goods and services in a market economy.
• include supply, demand, competition, consumer preferences, economic conditions, and government policies.

Question 8

inflation

Answer 8

• increase in the general price level of goods and services in an economy over a period of time

Question 9

welfare capitalism

Answer 9

employers provide workers with benefits like healthcare, pensions, and other services to make sure they’re taken care of
- usually to prevent government intervention

Question 10

suffrage

Answer 10

all about the right to vote in elections

Question 11

recession

Answer 11

when the economy slows down a lot. This means businesses make less money, people lose jobs, and everyone spends less.

Question 12

welfare state

Answer 12

the government helps its people with things like healthcare, education, money when they’re out of work, and support for housing and retirement.
- they are paid by the taxes the people pay
- government involvement

Question 13

what did the great depression affect

Answer 13

• stock market crash
• effect on business
• effect on investors
• effect on banks
• effect on agriculture
• effect on the world
• effect on the world trade

Question 14

how has welfare state or government been involved throughout the eras of the economy

Answer 14

• classical liberal (limited)
• modern liberal (intervention in times of crisis)
• socialism (directs economy to avoid crisis)
• communism (government controlled economy)

Question 15

safety net

Answer 15

refers to a system or measures in place to provide support and protection, especially during challenging times or unexpected circumstances.

Question 16

social effects of the depression

Answer 16

• capitalist system collapse which made people look for answers in the US and Canada
• classical liberal governments unable to help those in need
  -began to explore other forms of government leaning to the left

Question 17

what is Co-operative Commonwealth Federation (CCF)

Answer 17

• Founded in calgary 1932
• supported socialists program with increased government involvement in the economy
• it did cause strikes and protests

Question 18

John Maynard Keynes

Answer 18

• British economist
• promoted state intervention

Question 19

keynesian economy

Answer 19

• government control the amount of money circulation in the economy to lessen boom and bust cycle
• government controls the supply of money
• booms - decrease supply of money which would raise prices
• bust - increase supply of money which would lower prices

Question 20

The New Deal. who was it from

Answer 20

• roosevelt
• relief, recovery, and reform

Question 21

The Great Society

Answer 21

• goal was to eliminate poverty and racism in the US

Question 22

Friedrich Hayek

Answer 22

• challenge Kynesian
• defended classical liberalism

Question 23

problems with keynesian economics

Answer 23

• governments easily increase spending and decrease interests during difficult times
• during times of growth they are less likely to cut spendings and increase interest rates

Question 24

neo - conservatism

Answer 24

• a political ideology that emerged in the late 20th century promoting democracy and free-market capitalism, often through military intervention and a strong foreign policy.

Question 25

what was the red scare

Answer 25

• when people panicked due to the fear of rise of communism which is the left side of the spectrum

Question 26

what are circuit breakers

Answer 26

• breaks taken when the stock market when it drops to percentages
• ex) 7% drop will cause 15 minute halt

Question 27

what was the great depression

Answer 27

• economic crash that happened world wide after WWI
• decreased economic rate
• increase unemployment
• markets were crashing

Question 28

did the great depression cause people to lean more right or left

Answer 28

• left
• the capitalism system had crashed
• they wanted help from the government making them more involved

Question 29

how did people deal with the possible comeback of the great depression after wwii

Answer 29

• they started planning before the war was over
• developed safety nets
• introduction of mixed economy

Question 30

how did people deal with the possible comeback of the great depression after wwii

Answer 30

• they started planning before the war was over
• developed safety nets
• introduction of mixed economy

Question 31

mixed economy

Answer 31

• government intervention when it comes to protecting the people
• allows businesses to do whatever they want