Economic History Jeopardy Industrial Era #1 Industrial Era #2 Progressive Era Roaring 20s Great Depression #1 Great Depression #2 1960s – present 100 200 300 400 500

This type of business helped to raise the money needed to start up expensive factories

Corporations

Corporations help to raise capital by……

Selling stock

This invention spread across the United States to help link raw materials in the west with factories in the east

Railroads

DAILY DOUBLE! This new philosophy from the 1860s explained how the animal kingdom worked but the ideas were soon applied to human beings and society at large

Social Darwinism

Explain THREE factors that contributed to industrialization

Railroads: transportation Corporations: raised capital Western Expansion: raw materials Civil War: accelerated demand and created new technologies Immigrants: cheap labor Tariffs and Laissez-faire: business friendly govt. policies

Define laissez-faire

The government allows businesses and individuals to function without restriction

“Survival of the Fittest” played out in the American economy during the Gilded Age as these types of businesses eliminated competition

Monopolies

1. Explain why workers join a union 2. Define “Collective Bargaining”

1. Higher wages, better working conditions, better benefits 2 1. Higher wages, better working conditions, better benefits 2. The right of a union to negotiate a contract with management on behalf of workers

Why were labor unions unsuccessful in achieving their goals during the Industrial Era?

Government openly supported business owners in labor disputes (ex: sending in state militias, court injunctions)

1. The Populist movement (1890s) represented what group of people. 2 1. The Populist movement (1890s) represented what group of people? 2. What were the Populists’ demands?

1. Farmers 2. Government regulation of big business

What was the primary goal of the Progressive Movement?

To fix the problems created by industrialization

1. Define “Muckraker” 2. Give an example of a Muckraker

1. An individual who exposes abuses by business or government (usually through writing) 2. Upton Sinclair, Jacob Riis

How did Progressives seek to correct the problems created by industrialization

By using the power of government

Cite a Progressive Era reform from each category…. 1. Political 2 Cite a Progressive Era reform from each category….. 1. Political 2. Social 3. Economic

1. Recall, Referendum, Initiative, 17th Amendment (political corruption) 2. Settlement Houses (poverty), Prohibition (alcohol abuse), Conservation (wasting resources) 3. Sherman Antitrust Act, TR’s “Trustbusting” (Monopolies), Meat Inspection Act / Pure Food and Drug Act (Consumer Safety)

Explain the function of the Federal Reserve

“The Heart” of the Nation’s economy – to regulate the amount of money in circulation by setting interest rates

What new production technique was introduced during the 1920s that lowered the cost of consumer goods?

Assembly Line

What did the phrase “a return to normalcy” from the 1920 Presidential Campaign mean?

An end to the Progressive Era and the expansion of government and a return to laissez-faire

Explain why prices consistently rose on the stock market throughout the 1920s

Buying on margin: investors purchased stock with borrowed money Buying on margin: investors purchased stock with borrowed money. More money chasing after stocks = increase in price of stocks

DAILY DOUBLE! List TWO problems that existed during the 1920s that led historians to label it a decade of “false prosperity”

Stock market speculation Return to laissez-faire and the assault on organized labor Overuse of credit Overproduction by American farmers

The 1920s witnessed the growth of the consumer goods industry The 1920s witnessed the growth of the consumer goods industry. Explain why.

1. New production techniques lowered the cost of goods (assembly line) 2. Advertising 3. Availability of credit

As a result of this philosophy, Herbert Hoover did not allow the government to intervene in the wake of the stock market crash, bank failures, and growing unemployment

Rugged Individualism

FDR’s plan to end the Great Depression

The New Deal

Name and Explain the three “Rs” of the New Deal

Relief: put people to work Recovery: make businesses profitable again Reform: prevent another Depression

Explain TWO actions taken by FDR to restore public confidence in the banking system

Bank Holiday: forced banks to close to calm public panic FDIC: insured bank deposits

Explain the theory of Keynesian Economics (aka “demand side” economics”) and how it would help to end the Great Depression

Depression = high unemployment and no demand Government is only institution that can stimulate demand through spending (deficit spending)

What did the New Deal do to the power of the federal government?

Increased it

Explain how a relief program like the TVA or PWA would sow the seeds for future economic growth

Building hydroelectric dams = bring electrical power to a region = bring jobs to that region Building roads / bridges = lower transportation costs = encourage trade / economic activity between regions

Why did the Supreme Court do to certain parts of Roosevelt’s New Deal

Struck down the NRA and AAA as unconstitutional Gave the federal government (in particular, the President) powers not in line with the Constitution

How did FDR respond to the Supreme Court’s rejection of the NRA and AAA

He tried to “pack” the court by increasing its size and appointing justices sympathetic to the New Deal

What ended the Great Depression?

World War II: a massive expenditure of government spending

1. Explain the purpose of LBJ’s Great Society 2. Name TWO programs created by President Johnson’s Great Society

Medicare, Medicaid, Food Stamps, Head Start, Subsidized Housing A “war on poverty” Medicare, Medicaid, Food Stamps, Head Start, Subsidized Housing

Why are Social Security and Medicare facing a crisis?

Too many people retiring that are receiving benefits and not enough workers paying into the system

Explain the theory of “Reaganomics”

Supply-side economics: cut taxes for individuals and businesses to stimulate economic growth

Reagan’s critics called his economic policy by this term… Explain what the term means

1. “Trickle-down Economics” 2. Tax cuts for the wealthy and corporations will eventually “trickle down” to the average American

How has free trade caused the decline of American manufacturing?

No tariffs = move production to the country with the cheapest labor

Explain the economic systems of…. FINAL JEOPARDY Explain the economic systems of…. Capitalism Socialism Communism

Capitalism: individuals make all economic decisions (with government rules) Socialism: government owns SOME industries and makes all economic decisions in those industries Communism: government owns ALL industries and makes all economic decisions