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Social 30

Social 30. Chapter 6: The Evolution of Modern Liberalism. Review: Classical Liberalism Rejections of Classical Liberalism Text 196-97 Labor strike Text 196-99 Policy-makers: Chart (handout) Overview of Economics (handout) Supplementary Reading: Ch. 6 - Perspectives.

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Social 30

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  1. Social 30 Chapter 6: The Evolution of Modern Liberalism

  2. Review: • Classical Liberalism • Rejections of Classical Liberalism • Text 196-97 • Labor strike • Text 196-99 • Policy-makers: Chart (handout) • Overview of Economics (handout) • Supplementary Reading: Ch. 6 - Perspectives

  3. Economics and Liberalism in the USA: 20th Century SpectrumLiberal Economics – Lesson 1 (WilliamsSocial3:43) http://www.ctvnews.ca/health/ebola-outbreak-senegal-closes-border-with-guinea-1.1752790 Degree of Government involvement in Economy High Low Mixed Economy Free-Market Economy Command Economy

  4. A Precarious Balance: Trusts and Banking in the USA • Roosevelt’s Progressivism: • Text pg. 200 – cloze • (History of Banking – information) • (Charts – USA vs. Canadian banking) • Chart: pgs 200-201

  5. The “Roaring Twenties”

  6. Almost a decade of sustained economic prosperity after WWI • Handout – The Manhattan Transfer • US becomes dominant in world finance. • Wall Street invested (heavily) in Germany • Germany is paying off reparations • Countries pd by Germany are using the money to pay off their own debts to the US • Breaking with tradition; modernity; practicality (vs. formality).

  7. The First “Red Scare” • 1917-1920 • “red scare”: public fear of communism • (red=color of Bolshevik army in Rus. Rev.) • First Red Scare set the stage for 1920’s conservative American politics. • Left-wing groups (ex: Socialist Party of America; Industrial Workers of the World) opposed American WWI involvement. • Committee on Public Information sought war support by circulating anti-German propaganda and disrupting anti-war group activities. • “He May Be a Communist…” (3:17) re: 1950s • http://www.youtube.com/watch?v=AWeZ5SKXvj8

  8. Russian Revolution (1917): • Caused fear of a similar situation to WWI (communist support) • Political leftists were inspired by Rus. Rev. • Labor strikes: • Seattle, Cleveland, Pittsburgh, etc.: 1919-20 • Increased public perception of the rise of communist support • Bombings by anarchists • Mostly of Italian heritage • One on Wall Street killed 38 people • Increased public sentiment against immigrants and radical political involvement • Results: • Political conservatism • Xenophobia • (Text pg. 202)

  9. 1920’s Political Conservatism • 1921: Conservative Republican Warren G. Harding elected by widest margin of any president before him. • His platform: “a return to normalcy” • Isolationism • Nativism • Reduction of government involvement in citizens’ lives

  10. 1921 – Revenue Act • Reduced income tax • Repealed income tax profits applied to corporations • 1921 – Emergency Quota Act • Reduced immigration by 75% • Kept ethnic composition relatively stable • Text pg 203 • 1922 – Fordney-McCumberTarriff • To protect business and agriculture from foreign competition

  11. Calvin Coolidge: “The chief business of the American people is business.” • 1923: Harding, still in office, dies. • His VP, Calvin Coolidge, was sworn in, then won 1924 presidential election. • Coolidge: • Similar policies to Harding’s • Advocated for commercial enterprise

  12. Coolidge’s Laissez-faire and Classical Liberalism • Continued Harding’s isolationism and nativism • 1924 Immigration Act: • Limited number of immigrants allowed in 1921 Quota Act from 3% to 2%, measured now from 1890 (not 1910). • Banned Asian immigration • 1924:Revenue Act • Reduced personal income taxes • 1928: Revenue Act • Further reduced personal income taxes • Vetoed Congress: • 2x Coolidge vetoed Congress to disallow the government to subsidize American farmers • Suggestion was to buy surplus crop and sell it on foreign market at lower cost (profit to gov’t)

  13. 1920’s Economic Prosperity • Post-WWI, factories quickly switched from producing war supplies to domestic supplies. This quickly ended the likelihood of post-WWI recession. • Economy grew until 1929 • GDP of the US: • 1921: $73.6 billion • 1929: $103.6 billion

  14. Ford’s Contribution to Economic Growth: • Henry Ford • Mass production (assembly lines, mechanization) • Higher volume of goods at lower price to produce • Welfare capitalism • Minimum wage; 40-hour workweek • His motivation: financial • If workers are happy, they work better. • Better wages allow workers to buy the products they make, increasing demand.

  15. Results: • 1918: 300 000 registered motor vehicles (Canada) • 1929: 1 900 000 registered motor vehicles (Canada) • 1921: fewer than 1 in 3 (30%) of US families owned a car • 1929: 4/5 (80%) families owned a car

  16. Aids to Consumerism • Mass marketing • Radio\film – media influence • technologies; - telephone, home refrigeration

  17. And Social Values Change, As Well • 1920: USA: women gain right to vote (Canada = 1918-1940) • More women in the workforce • 1924: Indian Citizenship Act – Native Americans gain citizenship • Urbanization – for the first time, more urbanites than rural people

  18. Lingering Inequalities • Income disparity • Huge differences between rich and poor • 1917: wealthiest 10% of people earned 40% of all income • 1928: wealthiest 10% of people earned 49% of all income • Anti-immigrant/Racist beliefs • Books claiming that “northern European” American society is threatened by non-European races”: • The Passing of the Great Race – Madison Grant • The Rising Tide of Color Against White-World Supremacy – Lothrop Stoddard • Changes to immigration laws (previously noted; in Canada and the US). • Segregation (1876-1965)

  19. The Roaring Twenties - Legacies • Youtube: • “It was…the Roaring Twenties”(5:31) • Lists many inventions, people, occurrences… • http://www.youtube.com/watch?v=Xmqc_wJN4_M

  20. All Good Things Come to an End… I denied myself nothing my eyes desired;I refused my heart no pleasure.My heart took delight in all my labor,and this was the reward for all my toil.Yet when I surveyed all that my hands had done and what I had toiled to achieve,everything was meaningless, a chasing after the wind; nothing was gained under the sun. -Ecclesiastes 2:10-11

  21. Economic Cycles

  22. Herbert Hoover (US Pres. 1929-33)– in brief • Born to a Quaker family • Led humanitarian efforts in WWI; Woodrow Wilson appointed him head of the Food Administration (shipping food to American troops) • Harding and Coolidge both appointed him secretary of commerce; he began Hoover Dam project • Won a landslide (Republican) victory in 1928 lection • “We in America today are nearer to the final triumph over poverty than ever before in the history of any land” (from campaign) • Self-made success story • “the government should not support the people” • Refused to accept that the Depression was affecting as many people as it was, and that they could not help themselves • Bad move: Smoot-Hawley Act – raised taxes on imports (so foreign countries stopped buying American products, too) • Eventually, was convinced to start public works projects (Federal Farm Board); conditions did not improve. • Lost 1933 election to FDR; continued writing throughout his life against the New Deal, European Collectivism, etc. d. 1964 (90 years)

  23. Great Depression: Timeline • The Great Depression in 10 minutes: http://www.youtube.com/watch?v=GSDFalEcLAwKeith Hughes (10:18) • PBS Timeline: http://www.pbs.org/wgbh/americanexperience/features/timeline/rails-timeline/ • See: Text pgs 205-208; questions 1, 2, 5 (notes) • Text 217-219, questions 3,4

  24. Roosevelt’s “New Deal” • Remember from the timeline that Franklin Delano Roosevelt (FDR) had been sworn in as President in March 1933. • His policies were influenced by Keynes: • Gov’t involvement in the economy: • In prosperous times: gov’t should control inflation by raising taxes and interest rates and lowering gov’t spending. • In recessionary times: gov’t should lower interest rates and taxes, and increase gov’t spending to stimulate the economy.

  25. US National Archives: Stories from the Great Depression http://www.youtube.com/watch?v=TpfY8kh5lUw(27:47- 13:48-23)

  26. Roosevelt’s New Deal: • Pgs 205-208 (Perspectives) and questions 1-5 (finish) • Pgs 306-309 (Ideologies) and questions (for marks) (Found Poem = Bonus!)

  27. Social Effects of the Depression • Who will be affected most by a depression? • The poor – and there will become more poor as the depression continues • What did the poor do in the US? • Started joining collectivist groups – looking for support • Canada, 1932: Co-operative Commonwealth Federation (CCF) - formed in Calgary

  28. Unemployment, Poverty, and Social Unrest • Strikes and Protests: • On-Ottawa Trek • Regina Riot (Perspectives 208) • The Depression caused many people to question the efficacy of the classical liberal economic system. • Should the gov’t, then, take on more of a role? • This shift away from classical liberalism, toward a mixed economy, is the basis for a more modern liberalism.

  29. Quiz: Roaring Twenties, Depression, and the New Deal (??)

  30. Independent Work: • Booklet: “Evolution of Economic Liberalism in Twentieth Century: Focus: USA” • Perspectives “Pause and Reflect” pgs 209, 210 (discuss) • Read Perspectives 214-216 • “Stagflation”

  31. Rise of the Mixed Economy in the 20th Century: “Left-Wing” Modern Liberalism • Remember that “left-wing” modern liberalism is more collectivist. (pg. 228, fig. 6-16: Copy and Label) • Reading: “An Overview of _______ Economic Liberalism” • Complete Venn diagram and pol.cartoonass’t • Read together: • pg. 225-7 “Life is a Smorgasboard”

  32. Monetarism/Reaganomics/Thatcherism/Supply-side Economics/Trickle-Down • Yes, they all refer to the same thing (text 216-222). • Ideologies pgs 382-387; Reaganomics & questions • Perspectives text pgs 216-222 • Create a chart listing characteristics of these types of economic thought. What are the similarities and differences between each movement? What are the main points each person has focused on?

  33. Review : • Pg. 230 #1,4 • Source Analysis – m/c cartoons (handout) • Ensure that you have read through the whole chapter. • Review Mindmaps (handouts): • Evolution of Liberalism • Economics Review • Review: “Ebb and Flow of Economic Liberalism” - online mindmaphttp://www.mindomo.com/mindmap/ebb-and-flow-of-economic-liberalism-f7d35e913eaa4442aa92ee8b5225ee2c

  34. Review: • Lesson 6: The Evolution to Modern Liberalism (8:14) • http://www.youtube.com/watch?v=2swbP1ScnHI&list=PLF6A155E7AF94DCEA • Lesson 7: Canada’s Mixed Economy (7:38) • http://www.youtube.com/watch?v=wDLWfIOluI4&list=PLF6A155E7AF94DCEA • Lesson 8: Neoconservatives (7:12)(start @ 0:32) • http://www.youtube.com/watch?v=dHOD5rkK5LI&list=PLF6A155E7AF94DCEA

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