Economics and the Principles of Liberalism

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Semester 2 Unit 2 Modern US History March 14, 2011.

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Presentation transcript:

Economics and the Principles of Liberalism in North America In what ways did economies in the first half of the 20th century reflect the principles of liberalism? Outcome 2.13

THE “NEW DEAL” Franklin D. Roosevelt’s program of government spending to help the people of the United States against the Depression. He wanted to “prime the pump”. He believed that putting money into people’s pockets was like pouring gas into an engine to get it started.

ALPHABET AGENCIES CCC(Civilian Conservation Corps) Cut fire lanes through forests. Planted trees Worked in camps received food and shelter. ($1/day) WPA(Works Progress Adm.) Built schools, buildings & roads PWA(Public Woks Adm.) Built dams & bridges TVA(Tennessee Valley Auth.) Aims were to stop floods, make electricity and create fertile land.

TRADE UNIONS Wagner Act(1935) In 1935 Roosevelt passed a law which gave workers the right to form unions.

SOCIAL SECURITY Social Security Act (1935) Gave government pensions to those who could not provide for themselves. Unemployment insurance was introduced. Taxed workers to provide money for social security.

LABOUR LAWS FAIR LABOUR STANDARDS ACT (1938) Set out the maximum hours of work and minimum wage laws.

Discuss: Why is this change in policy so significant? What specific changes to ideology does it represent? Generate a list with a partner PG 209-210

Read and Review Go to pages 209-210 and compare your answers to those listed in the text. Read pgs 210-211 ``Government Response to the Depression in Canada`` -How are these policies different from the policies in place in the USA during the same period? - How are these policies similar?

Brainstorm How did the governments of Canada and the USA react to the recent economic crisis? - Give specific examples of policies What ideologies or principles are reflected in these policies? How have governments changed their approaches to economic crises, if at all?

Examples of Policies Interest rate lowered to 0.25% in 2009 (Canada) Government bailout of auto industry Job stimulation (public works) Protection of banks CMHC mortgage requirements Shorter mortgage terms ``Buy American`` clause Complete handout “Adapting Liberalism Chart”