Unit 4: Modern Liberalism Flashcards
When did modern liberalism start to develop
- after the great war 1
consumerism
- production of consumer products
- an economic theory that argues that the interests of consumers should be the most important factor in a business transaction
roaring twenties
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
henry ford
pioneered welfare capitalism
did usa want to be involved after wwi
- no
- they had US policy of isolationism
social values after wwi
- women suffrage
- first nations group in canada
- increased urbanization
- income disparity
- anti-immigration movement
- segregation
market forces
- 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.
inflation
- increase in the general price level of goods and services in an economy over a period of time
welfare capitalism
employers provide workers with benefits like healthcare, pensions, and other services to make sure they’re taken care of
- usually to prevent government intervention
suffrage
all about the right to vote in elections
recession
when the economy slows down a lot. This means businesses make less money, people lose jobs, and everyone spends less.
welfare state
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
what did the great depression affect
- stock market crash
- effect on business
- effect on investors
- effect on banks
- effect on agriculture
- effect on the world
- effect on the world trade
how has welfare state or government been involved throughout the eras of the economy
- classical liberal (limited)
- modern liberal (intervention in times of crisis)
- socialism (directs economy to avoid crisis)
- communism (government controlled economy)
safety net
refers to a system or measures in place to provide support and protection, especially during challenging times or unexpected circumstances.
social effects of the depression
- 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
what is Co-operative Commonwealth Federation (CCF)
- Founded in calgary 1932
- supported socialists program with increased government involvement in the economy
- it did cause strikes and protests
John Maynard Keynes
- British economist
- promoted state intervention
keynesian economy
- 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
The New Deal. who was it from
- roosevelt
- relief, recovery, and reform
The Great Society
- goal was to eliminate poverty and racism in the US
Friedrich Hayek
- challenge Kynesian
- defended classical liberalism
problems with keynesian economics
- 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
neo - conservatism
- 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.
what was the red scare
- when people panicked due to the fear of rise of communism which is the left side of the spectrum
what are circuit breakers
- breaks taken when the stock market when it drops to percentages
- ex) 7% drop will cause 15 minute halt
what was the great depression
- economic crash that happened world wide after WWI
- decreased economic rate
- increase unemployment
- markets were crashing
did the great depression cause people to lean more right or left
- left
- the capitalism system had crashed
- they wanted help from the government making them more involved
how did people deal with the possible comeback of the great depression after wwii
- they started planning before the war was over
- developed safety nets
- introduction of mixed economy
how did people deal with the possible comeback of the great depression after wwii
- they started planning before the war was over
- developed safety nets
- introduction of mixed economy
mixed economy
- government intervention when it comes to protecting the people
- allows businesses to do whatever they want
