Labour Rights: A response to classical liberalism

1. Labour Rights: A response to classical liberalism How do workers’ rights today compare to those in the 19th, or even early 20th century?

2. Focuses on greater individual freedom and economic freedom • Freedom comes from equality of opportunity What does this mean? Classical Liberalism Modern Liberalism

3. Economic Views • The government should not interfere in the economy. • If everyone knows that good times are followed by bad times, then it is everyone’s responsibility to save for the bad times. • The government should balance out the highs and lows of the economic cycle by raising/lowering taxes, government spending, and interest rates. • Keynes supported this. Classical Liberalism Welfare State

4. The Extension of Equality How did the concept of equality expand?

5. Labour Standards and Unions • Labour standards reforms were welcomed by workers but these reforms were set up by the government and capitalists. The workers had no say in their development. • In the 19th century some workers formed unions so they could bargain collectively and go on strike if needed. • Benefits and rights to workers slowly developed

6. In 1948, the UN incorporated two articles on labour in the Universal Declaration of Human Rights • Read articles 23 & 24 on page 155 of your text

7. Universal Suffrage • In the 18th century, in places where voting took place at all, the right to vote was reserved for propertied men with some wealth. Women, First Nations, and certain religious and ethnic groups were not allowed to vote • From 1867-1919, the classical liberal idea that voting was a privilege for the few gradually gave way to the idea that the franchise was a right. • Slowly, qualifications were removed, but for men only

8. Universal Suffrage • Classical liberalism proclaimed the equality of men, but not all men. Only certain men were considered “equal” and in most cases women were not included. • In many cases only certain races, economic classes, religious members, etc were permitted to vote while others were excluded. • Women weren’t permitted to vote until much later (depending on the nation) and, in some cases, still do not have the right to vote

9. Canadian Voting Rights The Dominion Elections Act (1920) • Vote given to all citizens of European extractions – both men and women • First Nations were not given the vote until 1960 (Inuit were awarded this right in 1950, but most were unable to exercise this right as poling stations were not set up in the North until the 1960s) • The last group to receive the franchise was prison inmates in 2002. See timeline on page 157

10. Voting Rights Across the Globe • Bhutan -- One vote per house. Although this applies to both men and women, in practice it currently prevents many more women from voting than men. • Lebanon -- Partial suffrage. Proof of education required for women, not required for men. Voting is compulsory for men; optional for women. • Brunei -- No suffrage for men or women. This country is ruled by a monarchy. Neither men nor women have the right to vote or to stand for election. • Saudi Arabia -- No suffrage for women. The first local elections ever held in the country occurred in 2005. Women were not given the right to vote or to stand for election. • United Arab Emirates -- No suffrage for men or women. The Parliament is officially appointed and there are no elections. Neither men nor women have the right to vote or to stand for election. Can you suggest why these nations may not be overly supportive of suffrage in general and female suffrage in particular?

11. Feminism • Feminism, at its simplest, is the belief that men and women are to be treated equally in all respects • Initially most people thought the rights of ‘man’, meant ‘men’….the train of thought here is equal rights solely. • Women were expected to work as hard as men, and were a source of cheap labour, as they were usually paid much less. • Gradually, women became more involved in the public sphere, becoming involved in anti-poverty campaigns and child labour movements; they were also active in temperance societies, which fought against the abuse of alcohol.

12. An expansion of rights… One two • By 1860, suffragists argued for the right to vote feeling this was the only way to gain greater equality rights (awarded 1920) • In 1929, the Canadian government recognized the right of women to be appointed to public office • Gender equality rights were also entrenched in the constitution. Nellie McClung: http://www.histori.ca/minutes/minute.do?id=10643

13. The Liberal Response to Classical Liberalism

14. How did classical liberalism respond to competing ideologies? Outcome 2.8

15. Welfare Capitalism • Classical liberals gradually came to see the merits of some of their opponents’ views and modified the expression of some of their values and beliefs • Rather grudgingly, classical liberals began to recognize that some modifications were necessary. The basic premise for these modifications was an acceptance of the fact that those who believed in the pursuit of industrial efficiency—laissez-faire capitalists--needed to develop a social conscience and more concern for the equality rights of workers • Welfare Capitalism: a classical liberal economic system combined with a government that used legislation to give workers protection. Examples: limited working hours, minimum wage, pensions and medical insurance.

16. Welfare Capitalism at work… • Britain, for example, passed a series of Factory Acts, beginning in 1810 • Each Act gradually improved the working conditions in factories, decreased working hours, regulated the ages at which children could be employed, and regulated the number of hours women and children could be required to work • Germany passed similar acts starting in 1883 • Still, capitalists did not gladly or easily give way to new ways of thinking about society’s responsibilities

17. Theodore Roosevelt and Welfare Capitalism… • He was a reformer who recognized some of the problems associated with classical liberalism • When the United Mine Workers of Pennsylvania walked off the job, instead of calling in the army against the workers as owners had hoped, Roosevelt threatened to use the army against the owners should they refuse to negotiate. Look at the National Progressive Party’s platform (pgs 143-144) What three principles did the party hope to implement that challenged classical liberalism?

18. President Theodore Roosevelt • He wanted capital and labour (profits and workers’ rights) to be treated fairly • He called this the square deal • He went on to found a new political party-The National Progressive Party-whose platform contained this new kind of liberalism, sometimes called progressivism

19. Progressivism • Goals: • Securing equal suffrage to men and women alike • Conservation of human resources (workers’ rights, prohibit child labour, etc.) • Implement a single national health service • Most of this early legislation dealt with workers’ rights. It failed to address issues such as child poverty, education, housing standards, etc. • Also, when WW1 broke out the government needed the support of factory owners for the war effort.

20. Welfare State • The movement from welfare capitalism to a welfare state was spurred by the Great Depression • A welfare state is a state in which the economy is capitalist, but the government uses policies that directly or indirectly modify the market forces in order to ensure economic stability. • The Great Depression became a catalyst for change, and what began to emerge was modern liberalism as we know it today

21. The Emergence of The Welfare State • The move from welfare capitalism to the welfare state was motivated by the Great Depression. • The problems that arose during this period made it obvious that the existing political, economic and social order had failed. • What began to emerge was as we know it today. modern liberalism

22. THE ROARING TWENTIES • United States was the richest country in the world.(resources & population) • After the war the U.S.A. became wealthy by mass producing consumer goods like radios and cars • The USA also became the breadbasket for Europe during WWI. • Factory workers were paid well which meant they spent money on consumer goods.

23. The beginning of the end... • As the 20’s progressed , more and more people were buying shares of companies “on margin” or “on time” (credit) and these shares rose in price. • Factories produced more goods than people could buy; therefore, the supply of goods was much more than the demand. • After the war ended, America continued to produce large amounts of grain. When France began producing grain again, the market became flooded and the price of grain plummeted. People began selling their stocks

24. THE WALL STREET CRASH • In 1929 share prices were rising but profits for companies began to decline. • By September and October, the market was fluctuating wildly • On October 24th of 1929, panic selling of shares forced the value of shares to drop drastically. • By October 29th, the market crashed. • The stock market crash brought an end to prosperity in the U.S.A.

25. Other Causes of The Great Depression • Demand for goods could not keep up with supply • Droughts • Wages did not increase to match inflation • Farmers went bankrupt • Banks failed • Factories closed • Increase in unemployment • High rate of corporate fraud

26. THE GREAT DEPRESSION • By 1931, unemployed people were lining up in breadlines since there was no unemployment insurance. • Countries used protective tariffs in an attempt to protect domestic industry, so global trade declined. • By 1932, 12 million people were unemployed. • President Herbert Hoover feared that assistance from the government would make citizens reliant and unable to stand on their own two feet. • In 1932, the American people voted for Franklin D. Roosevelt as president on a platform of government intervention to get the USA out of the Depression. Conditions were much the same in Canada. Angry farmers duped horse drawn automobiles the “Bennett Buggy” after Prime Minister Richard (R.B) Bennett. See MWUC case study on pg 145-146

27. A Proposed Solution: Keynes • Classical liberals believed that there would be full employment when supply and demand were in balance. • They also believed that the “natural law” of economics was that good times were followed by bad times. Therefore, it was the individual’s responsibility to save for bad times during periods of prosperity. • Keynes argued that the economy was unstable and people reacted in times of uncertainty by hoarding money, thereby harming the economy. John Maynard Keynes: A British economist who developed the theory known as “Demand Side Economics” or “Keynesian Economics” in response to Great Depression

28. Because few people could predict the variances in the market, most suffered during times of recession and depression. • He proposed a solution to this problem through the regulation of government spending, taxation, the regulation of the interest rate and production of money. • In doing so, governments could regulate consumer demand, thus regulating the economy.

32. Keynes’ Demand Side Economics More money in your pockets: Governments should spend money in a recession to reduce its severity. It should also reduce taxes. Less money in your pockets: Governments should spend less money in boom times to soften a boom. It should also raise taxes.

33. The “New Deal” • Franklin D. Roosevelt (Theodore Roosevelt’s distant cousin) was president of the United States from 1933-1945 • He was the first to convert to Keyne’s theories • He implemented massive public works programs to put people to work • He called it the “New Deal,” an echo of Theodore Roosevelt’s “square deal.” • This represented the beginning of a shift to the welfare state and a mixed economy (capitalism with government intervention)

34. By the 1950s and 60s, the welfare state was reality in most democratic countries, including Canada, and modern liberalism was in place. • What are two significant details surrounding the dates of F.D.R.’s presidency? • What similarities do you see between the “New Deal” and the recession today?

35. The Haymarket Riot Read the Skill Path on pages 151-153 and answer questions1-3.

36. Demand Side Economics (Keynesian) MONETARY POLICY • Capitalism tends to move through cycles • Prosperity • Recession • Depression • Recovery • During inflationary times, the government should raise interest rates, raise taxes, reduce spending and slow the production of money. This takes money out of the economy, thus slowing it down. • During a time of growth, the government must save money to prepare for a recession. • During recessionary times, it is necessary for government to lower interest rates, decrease taxes, and increase government spending. This puts money into the economy, thus speeding it up and avoiding a depression. • This may cause debt, or a deficit, but any money lost will be recovered during the next expansion phase. • Interest rates • Production of money FISCAL POLICY • Government spending • Taxation Franklin D. Roosevelt of the USA used these ideas in the “New Deal” to get America out of the Great Depression. We will study his policies more in depth in chapter 6.

37. Insert spectrum from pg 150