THE EVOLUTION OF MODERN LIBERALISM SS 30-1 Chap 6 Part 1

TOPICS  Robber Barons or Captains of Industry?  Progressivism – Roosevelt and Taft  Credit Unions  “Red Scare”  Decades contrasted – 1920’s/ 1930’s

ROBBER BARONS OR CAPTAINS OR INDUSTRY?  cold and ruthless  unwilling to share  greedy in his pursuit of money  caring nothing for the troubles of their workers  made the most of an opportunity  took risks  worked hard  achieved success  philanthropic (charitable) acts

TEDDY ROOSEVELT AND PROGRESSIVISM  The “square deal”  Reforms put in place to prevent monopolies  Concerns that large powerful corporations were taking advantage of common people

WILLIAM TAFT  Roosevelt’s successor and former vice president  Continued Roosevelt’s policies  Anti-trust act – to prevent  monopolies between competing companies in an industry  ie – competing oil companies couldn’t be owned by a parent company

CREDIT UNIONS  Began as small financial institutes owned by their members  Alternative lending institute to banks  First credit union in North America set up in Quebec  C.U.’s became popular with farmers in the 1930’s – “easier” to work with them instead of with the banks

RED SCARE  Fear of communism in North America  Fear fuelled by the Russian Revolution  Conservatism and Classical Liberal Economics became popular – businesses would find advantage

1920’S  Era of optimism  Immigrants poured into North America in search of better lives – more of a sense  of equality here that could be achieved through hard work  US Presidents Harding and  Coolidge – favoured free enterprise, reduced taxes, “Isolationism” and later reduced immigration to preserve “America’s current ethnic heritage.”

1920’S CONT’D  Consumerism increased – new products, automobiles become popular  American economy grew throughout the 20’s  Gap between rich and poor continued to grow  More of the pop. Became urban dwellers  Women were enfranchised -Canada US 1920

1930’S  Stock Market Crash in Oct lead to the Grt. Depression  Became a decade of despair – by 1933 – 25% unemployment in the US, 54% income rate as compared to 1929  FDR (Franklin Roosevelt)– elected as US President – instituted the New Deal – based on Keynesian Economics  3 main objectives – relief, recovery and reform  Collectivist ideas of the government influencing the economy ends laissez faire capitalism How could this photo be considered as ironic??

1930’S CANADA  Depression felt here as well – many Canadians began to support political parties with collectivist policies  CCF (Co-operative Commonwealth Federation) – founded in Calgary in 1932-mixed economic policies of public ownership of industries and financial institutions  Canada was slower to act on reforms as compared to the US – a Conservative PM was in power (Bennett)  1935 – Liberals came to power under PM King – gov’t became much more involved in the economy  Created public institutions and social programs  See p. 211 for details

1930’S OVERSEAS  The Grt. Depression impacted the world  Known as the “Grt. Slump” in Britain  France affected by 1931, but not drastically – they were quite self-sufficient  Huge impact in Germany – Americans had been helping with Germany’s war debts – money dried up  The failed economy and corrupt democratic gov’t (Weimar Republic) would send Germany towards extremism (Hitler and Fascism)