I know this is quick! But, flash forward WW2 if over…

Housekeeping Vocab Books, let’s pass them back! Vocab Books, let’s pass them back! People who need to write the in-class essay, it really needs to happen! People who need to write the in-class essay, it really needs to happen! Tomorrow, In Class you will have to write it. Tomorrow, In Class you will have to write it.

Quick Review We’ve talked about the Great Depression. We’ve talked about the Great Depression. We’ve talked about the 20’s and the 30’s We’ve talked about the 20’s and the 30’s We’ve seen the development, or at least the history, of the United States. We’ve seen the development, or at least the history, of the United States. I want to take a brief jaunt along the post war economy! I want to take a brief jaunt along the post war economy!

Words Stagflation. Stagflation. Reaganomics. Reaganomics. Trickle-down economics. Trickle-down economics.

Let’s just talk about this If you want to follow along, I am addressing the ideas from: If you want to follow along, I am addressing the ideas from: Pages: Pages:

Monetarism We’ve seen the development from Laissez- Faire to Modern to Laissez to Modern, etc… We’ve seen the development from Laissez- Faire to Modern to Laissez to Modern, etc… This last change from the 1970’s until recently. This last change from the 1970’s until recently. It was led by leaders (in Canada) such as Ralph Klein and Stephen Harper. It was led by leaders (in Canada) such as Ralph Klein and Stephen Harper. Both attempted to undue Modern Liberalism. (interventionism) Both attempted to undue Modern Liberalism. (interventionism)

Monetarist I idea that people government should watch control of money supply. I idea that people government should watch control of money supply. Government intervention and programs increase money supply and increase inflation (artificially). Government intervention and programs increase money supply and increase inflation (artificially). Created by Milton Friedman. Created by Milton Friedman.

He argued As money supply increases, so does spending. As money supply increases, so does spending. Demand also increases, as do prices. Demand also increases, as do prices.

Hayek Felt that too much government control would eventually lead to government involvement in social lives. Felt that too much government control would eventually lead to government involvement in social lives. Also, no government could understand the true needs of all the people. Also, no government could understand the true needs of all the people. Liked Adam Smith, free market, Supply and demand. Liked Adam Smith, free market, Supply and demand. LESS GOVERNMENT. LESS GOVERNMENT.

Let’s read a small quote: “From my point of view, we in the United States have gone overboard in respect to the extent of regulation and detailed control of labor standards, industry, and the like. It’s bad for us… I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it’s possible.” “From my point of view, we in the United States have gone overboard in respect to the extent of regulation and detailed control of labor standards, industry, and the like. It’s bad for us… I am in favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it’s possible.” -Milton Friedman

What do you think about that?

Vs. Keynesian The adoption of this ideology in the 70’s reflect the swing back to Classical Liberalism. The adoption of this ideology in the 70’s reflect the swing back to Classical Liberalism. The Depression and WW2 was more modern. The Depression and WW2 was more modern. Some think it was a broken understanding of Keynes that led to this. Some think it was a broken understanding of Keynes that led to this. And led to Stagflation. And led to Stagflation.

Reaganomics Pres from Pres from The US had overspent and was in deficit. The US had overspent and was in deficit. He took these ideas, as well as Smith and Freidman, and created Reaganomics. He took these ideas, as well as Smith and Freidman, and created Reaganomics. Less Government. Less Government. Less Taxes. Less Taxes. Less Regulation on Business. Less Regulation on Business. Increased Military Spending (???) Increased Military Spending (???)

Trickle-down economics If you decrease taxes, people spend more. If you decrease taxes, people spend more. People will invest more and develop more industry. People will invest more and develop more industry. Eventually, money will trickle down to the working class. Eventually, money will trickle down to the working class. What do you think about this??? What do you think about this??? Let’s look at page 221. Let’s look at page 221.

Thatcherism Margaret Thatcher ( ) Margaret Thatcher ( ) PM of the UK. PM of the UK. Reduced government involvement. Reduced government involvement. Sold off government housing. Sold off government housing. Privatized Crown Corporations. Privatized Crown Corporations. Did not like Unions. Did not like Unions.

Mulroney Raised Taxes. Raised Taxes. Created Interest on Student Loans. Created Interest on Student Loans. Sold Petro-Canada Sold Petro-Canada Sold Air Canada. Sold Air Canada. Created NAFTA. Created NAFTA.

Tony Blair (first change) 1997 (PM of UK) 1997 (PM of UK) Goes against Thatcher. Goes against Thatcher. Increased Spending. Increased Spending. Strong Unions. Strong Unions. Mixed Economy. Mixed Economy. Higher wages. Higher wages. Tuition Reform Tuition Reform

Harambee The Middle ground. The Middle ground. “let us pull together” “let us pull together” The idea of mutual assistance, joint effort, mutual social responsibility, and community self-reliance. The idea of mutual assistance, joint effort, mutual social responsibility, and community self-reliance.

Economic Liberalism Today Free Trade among nations. Free Trade among nations. Creates the Call-Centre Phenomena. Creates the Call-Centre Phenomena. As well as Outsourcing. As well as Outsourcing. Let’s look at page 228, fig Let’s look at page 228, fig 6-16.

Economic Spectrum!

Currently We are currently heading towards modern Liberalism again. We are currently heading towards modern Liberalism again. The turmoil of o the recent housing crisis and the inflation of the Bush Era caused people to shift. The turmoil of o the recent housing crisis and the inflation of the Bush Era caused people to shift. The election of a Very Modern Liberalist, Such as Obama, shows the societal shift. The election of a Very Modern Liberalist, Such as Obama, shows the societal shift.

That’s the end! Tomorrow we start Chapter 7!

In your journals Page 230. Page 230. Question 1, A and B. Question 1, A and B. Let’s get on the Go! Let’s get on the Go!