Economic Timeline & Philosophers Illustrations by Tony Biddle

Please Note This curriculum material has been developed by the Canadian Centre for Policy Alternatives and is provided to support union, community, and non-profit organizations to undertake popular economics training. Non-commercial use and reproduction, with appropriate citation, is authorized. Commercial or professional use is prohibited without approval from the Canadian Centre for Policy Alternatives, Ottawa, Canada. This material has been edited by the NYC Virtual Enterprises Office for educational purposes. Some of the original slides may have been removed and replaced with other slides. www.economicsforeveryone.com © Canadian Centre for Policy Alternatives, 2009

Key Topics Covered Economic timeline of capitalism in the US Critical events in history Economic philosophers and thinkers Adam Smith: Classical economics Karl Marx: critique of capitalism Leon Walras: Neoclassical economics John Maynard Keynes: Keynesian economics Milton Friedman: Neoliberal economics

US Economic Timeline Early beginnings 1607: Jamestown, Virginia established as first English colony 1636: Beginning of the Atlantic Slave Trade, creating the dominant economic structure of the south Image Source: Karm, Bob. Jamestown Colony. Digital Image. PDX Retro. PDX Retro. Web. 17 October 2016.

US Economic Timeline Adam Smith – Classical Economics 1776: Adam Smith Wealth of Nations published, introducing classical economic thought Identified division of labor as source of productivity in new industry Argued that markets and competition will lead to an efficient allocation of resources and regulates economic activity Concept of the “invisible hand” of the market was established; the market will automatically reach equilibrium through self-operated individual forces

US Economic Timeline 1787: Constitution of US signed 1819: US declares slave trade as a capital offense 1823: Monroe Doctrine issued, ending European involvement in the western hemisphere Image Source: Monroe Doctrine Political Cartoon. Digital Image. United States History LSA. Tangient LLC. Web. 17 October 2016.

US Economic Timeline Karl Marx – Critique of Capitalist Society 1844: Marxist critique of capitalist society Critiqued the structure of capitalism and how it can exploit workers Argued that the capitalist structure of private property oppresses the poor and working class Takes a class-based approach to understand economic and social relations Argued that profit reflects social relations, not the productivity of capital Image Source

US Economic Timeline 1860-1865: Civil War between the Union and the Confederacy 1865-1870: The 13th, 14th, and 15th Amendments were ratified to abolish slavery 1870~1900: Height of the Industrial Revolution

US Economic Timeline Leon Walras: Neoclassical Economics 1870s~Present: Neoclassical thought Emphasis on mathematical techniques and data to support classical economics Attempt to classify economics as a scientific field Justified capitalism and the payment of profit Faith in self-adjusting, welfare-maximizing power of markets Came to dominate economics teaching

US Economic Timeline John Maynard Keynes: Keynesian Economics 1929: Stock Market Crash and beginning of the Great Depression 1930s~Present: Keynesian economics Wrote in context of 1930s: prolonged depression which disproved neoclassical model Advocated government intervention (spending, tax changes) to offset recessions Intellectual underpinning for New Deal policies 1933-1938: Passing of New Deal policies that aimed to improve the conditions for those suffering during the Great Depression

US Economic Timeline 1939-1945: Beginning and end of WWII 1945-1960s: Post WWII economic boom (Golden Age of Capitalism) 1965: Social Security Amendment resulted in the creation of Medicare and Medicaid

US Economic Timeline Milton Friedman – Neoliberal Economics 1970~Present: Neoliberal economics (Milton Friedman) Belief that government intervention in the economy only causes inflation and unemployment Argued that primary factors of the economy should rest in the private sector Aims for a laissez-faire approach to economic development Advocates for the use of monetary policy to manage economic outcomes

US Economic Timeline 1980: Beginning of Reaganomics, establishment of neoliberal (trickle-down) economic tradition that advocated for lower deficit and smaller role of government 1994: North American Free Trade Agreement ratified 1996: Welfare reform passed under Bill Clinton 2008: Housing market crash begins the Great Recession 2010: Affordable Care Act passed under Barack Obama

Homework Assignment Select a significant historical event at any point on the US economic timeline and write a detailed paragraph that explains how the event may have shaped economic policy or how economic policy may have influenced the event. Example - WWII (1939-1945) resulted in: Increase in industrial productivity Tremendous demand for labor Created entire new technologies, industries, and associated human skills Higher wages and fringe benefits to lure potential employees