Industrialization
What were some characteristics of the emerging industrial landscape?
Large corporations, factories, tech innovations, expanded railroad system, monetary investments, population increase, more cities, underclass of poor workers, rise of SUPER rich
What did progressives react to?
The social/political/economic culture around them:
- industrialization
- urbanization
- immigration
- government corruption
What are some characteristics of a recession?
- high unemployment
- continual decrease in production leads to total national GDP decline
What is the Agricultural Adjustment Act (AAA)?
Paid farmers NOT to grow crops (to decrease supply and increase demand)
What were FDR's Four Freedoms?
1. Freedom of Speech/Expression: everywhere in the world
2. Freedom to worship God: everywhere in the world
3. Freedom from want: everywhere in the world
4. Freedom from fear: everywhere in the world
Who are some examples of the SUPER MEGA rich during the Gilded age?
Cornelius Vanderbilt (railroad), J.P Morgan (finance and investments), John Rockefeller (oil), Andrew Carnegie (steel)
What are some of the progressive values?
Optimistic vision for the future, purposeful intervention in society (try to make changes), importance of social cohesion (did not like divide between rich rich and poor), work WITHIN a capitalist system
MOST OF ALL BELIEVED IN A MODERN GOVERNMENT
What are the characteristics of a depression spiral?
Shock: something bad happens to economy
Companies cut back: to prepare for decreased demand, companies decrease production
Layoffs: decreased production means decreased labor
Cutbacks: lower employment means less people spending money which means less demand which means more layoffs and it's a BAD cycle
What is the Civilian Conservation Corps (CCC)?
What does "Double V" mean?
- war demanded many more workers and soldiers, black americans stepped up to fill those roles and started to break a few of the racism barriers
What is a monopoly?
One seller controls the market
Problems: monopolist captures most of the gain leaving little for anyone else, can unfairly control the economy by reducing production to raise prices (less goods in the market = people will pay more for them)
What were progressive's beliefs about government?
Only a strong, active gov could combat the private powers (super richy rich people)
Gov needs to be EFFICIENT, DEMOCRATIC, and RESPONSIVE
How did FDR rescue the American economy?
He used the government as a safety net
- president became legislative leader through unprecedented broad executive power
- "spend it to end it" ideaology
- create demand (money flow) by increased spending or decreased taxes (This is fiscal policy)
- repay deficits when prosperity returns again
What is the Tennessee Valley Authority (TVA)?
Built dams and power plants along Tennessee River in 7 different states (employed citizens to work on these projects)
Who were the War-time women?
When men went abroad as soldiers, women stepped in to fill the worker roles. At one point, 60% of the workforce was women. Rosie the riveter type women - tough, strong, hard working, providers
What are externalities?
Cost or benefit to a third party not involved in the exchange. Decision that affects the bystanders
Problems: External costs (negative externality) leads to overproduction
External benefits (positive externality) leads to underproduction
IE: a super loud concert plays in a park. It keeps babies up at night with the noise (-) but people also get to listen without paying for a ticket (+)
What are some structural changes to society/government that came about because of progressives?
- Secret ballot (private voting)
- Women's vote (19th amendment in 1920)
- Workday and minimum wage regulations
What is fiscal policy vs monetary policy
Fiscal policy: Congress and President
- government spending goes UP, taxes go DOWN
Monetary policy: Federal Reserve (national banks system)
- Monetary supply goes UP by decreasing interest rates on loans
*downsides: deficit spending, leads to inflation, long to implement*
What was the Works Progress Administration (WPA)?
Created public works projects for the jobless. Built swimming pools, highways, airports, theatres, etc
Why were Japanese Americans relocated to internment camps?
After bombing of Pearl Harbor, people suspicious of those associated with Japan. An executive order. 125,000 relocated away from their homes. US Supreme Court case Korematsu vs US challenged this and failed. Only in 1988 did US make reparations and apologize
Not enough information is known/understood about a potential exchange
Problem: leads to non-mutually beneficial exchanges
IE: you don't know that rat guts are in your ground beef
What was Tammany Hall?
A major political machine that seemed to be doing good on the surface (creating good housing, contributing to poor, etc) but was actually super corrupt on the inside and skimmed tons of money off the top. Big Boss Tweed was the main guy. Showed the DEEP corruption on all levels of government at this time
What did the New Deal Acts do?
- Broke laissez-faire economics (government intervened and forced back on track instead of just letting the market do its own thing)
- accept deficit spending as an ok way to kickstart economy again
- increase federal power and create federal safety net
- restore faith in democracy (a president who cared about current events and acted to fix them)
A financial safety net. Guaranteed insurance to US citizens through pension system. Assisted the elderly, the unemployed, the disabled, those that couldn't work.
What does "Pax Americana" mean?
Peace of America
- US becomes "policeman" of the world through alliances like NATO, manage global economics and security
- Participated in Korea War and Vietnam War as a battle against communism (stand for four freedoms even though US not directly affected)
- War on Terror: post 9/11, Afghanistan and Iraq wars