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

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

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

The “Roaring Twenties”

• 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).

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

• 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)

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

• 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

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

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)

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

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.

• 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

Aids to Consumerism

• Mass marketing• Radio\film – media influence• technologies; - telephone, home refrigeration

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

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)

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

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

Economic Cycles

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)

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

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.

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

Roosevelt’s New Deal:

• Pgs 205-208 (Perspectives) and questions 1-5 (finish)

• Pgs 306-309 (Ideologies) and questions (for marks)

(Found Poem = Bonus!)

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

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.

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

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”

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”

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?

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

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