social 30 chapter 6: the evolution of modern liberalism
TRANSCRIPT
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Social 30
Chapter 6:The Evolution of Modern Liberalism
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• 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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Economics and Liberalism in the USA: 20th Century Spectrum
Liberal Economics – Lesson 1 (WilliamsSocial 3:43) http://www.ctvnews.ca/health/ebola-outbreak-senegal-closes-border-with-guinea-1.1752790
Command Economy
Mixed Economy Free-Market
Economy
Degree of Government involvement in Economy
High Low
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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
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The “Roaring Twenties”
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• 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).
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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
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• 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)
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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
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• 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-McCumber Tarriff– To protect business and agriculture from foreign
competition
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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
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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)
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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
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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.
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• 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
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Aids to Consumerism
• Mass marketing• Radio\film – media influence• technologies; - telephone, home refrigeration
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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
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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)
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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
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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
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Economic Cycles
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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)
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Great Depression: Timeline
• The Great Depression in 10 minutes: http://www.youtube.com/watch?v=GSDFalEcLAw Keith 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
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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.
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• US National Archives: Stories from the Great Depression http://www.youtube.com/watch?v=TpfY8kh5lUw (27:47- 13:48-23)
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Roosevelt’s New Deal:
• Pgs 205-208 (Perspectives) and questions 1-5 (finish)
• Pgs 306-309 (Ideologies) and questions (for marks)
(Found Poem = Bonus!)
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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
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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.
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Quiz: Roaring Twenties, Depression, and the New Deal (??)
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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”
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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.cartoon ass’t
• Read together: • pg. 225-7 “Life is a Smorgasboard”
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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?
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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
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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