1. Chapter 6.4
Populism

2. 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

3. 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.