Chapter 6.4 Populism.

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Presentation transcript:

Chapter 6.4 Populism

Unrest in Rural America The Money Supply Paper vs. coins Believe it or not, coins win What is our money really worth So, if deflation lowers prices isn’t that a good thing? Let’s borrow $100 Price of Candy bar # of candy bars purchased Inflation or deflation Change in value of $? Borrowers or lenders happy $2 50 Inflation Down Borrowers $1 100 ------------- ----------------- $0.50 200 Deflation Up Lenders

Cont How do we help the borrowers? The Grange takes Action We need more money More money means more gold… or silver? The Grange takes Action Cooperatives designed to organize farmers. Didn’t really work – too small, no gov’t help The Farmers Alliance Similar strategies as The Grange, no real effect.