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Responding to Classical Liberalism Chapter 4
Why did ideologies develop in opposition to classical liberalism? How did classical liberalism respond to competing ideologies? How did the concept of equality expand?
Why did ideologies develop in opposition to classical liberalism? Laissez-faire capitalism was primarily concerned with industrial efficiency and the accumulation of wealth These goals were considered more important than equality, workers were viewed as one component of production, not necessarily on par with the wealthy elite Therefore, not all people saw the Industrial Revolution and classical liberalism as positive developments.
There were many protests against the effects of classical liberalism. Not all developed into complete ideologies but nonetheless opposed classical liberalism in some way:
Luddites Led by Neil Ludd Textile workers who were being replaced by machines during industrialization broke into factories and broke machinery in the 1800 s This became a movement known as Luddism
Chartists Chartism was a working-class movement in Britain that focused on political and social reform. Named after the People’s Charter of 1838 which had 6 goals: Universal suffrage for all men over 21 Equal-sized electoral districts Voting by secret ballot And end to the need for property qualifications for Parliament ◦ Pay for members of Parliament ◦ Annual elections ◦ ◦
Chartism looked to counter the inequality created by the Industrial Revolution and classical liberalism through the electoral process. Their actions, like those of the Luddites, led to violence However, their demands were eventually implemented in the Reform Acts of 1867 and 1884
Socialist Ideologies Socialism believes that resources should be controlled by the public for the benefit of everyone in society and not by private interests for the benefit of private owners and investors Characterized by co-operation and a high degree of state involvement Socialists rejected the lack of equality and humanitarianism in classical liberalism Unlike Luddism and Chartism, forms of socialism became effective ideologies
Utopian Socialists The word utopia has come to mean a perfect world meant to serve as a model for real life Utopians were humanitarians who advocated an end to the appalling conditions of the average worker in the industrial capitalist countries at that time Robert Owen was a well known utopian socialist; he believed the harshness of life under capitalism corrupted human nature Education and improved working conditions could peacefully eradicate the worst aspects of capitalism
Owen developed a model community in New Lanark, Scotland which was the largest cottonspinning business in Britain It was an education centre with ideal working and living conditions
Marxism The term ‘Marxism’ was coined by a group of French socialists but Karl Marx (1818 -1883) proclaimed that he was not a Marxist Marxism is a radical form of socialism often called scientific socialism or communism According to Marx the only way to overthrow capitalism was a class struggle, a workers’ revolution, between the proletariat (workers) and the bourgeoisie (owners). Let’s look at the chart on the left side of page 136 and the 10 points (pages 136 -137)
This type of socialism favours the abolition of private property and the centralization of the means of production in the hands of the state This is a command economy: an economic system based on public (state) ownership of property in which government planners decide which goods to produce, how to produce them, and how they should be distributed (e. g. what price they should be sold at). This is also known as a centrally planned economy, usually found in communist states
Classical Conservatism Classical conservatism was the reaction to classical liberalism Reactionary, also known as conservative or the Right (referring to the political spectrum), refers to an ideology that supports a return to a previous state of affairs. Just as the Luddites reacted to industrialization by breaking machines, others reacted to classical liberalism Edmund Burke believed change should take into account the past and the future, not just the present, therefore change could not come from the whims of the present generation
Edmund Burke He was a reactionary, he reacted to the political issues of the day He believed: • Society should be a hierarchy with those best suited to lead at the top because not everyone has equal abilities. Uninformed people should not have a say in government. • Government should be chosen by a select few with special rights and responsibilities • Leaders should be humanitarian-care for others • Society must be stable and that can only be achieved through law, order, customs, and traditions
The Liberal Response Classical liberals gradually came to see the merits of their opponents’ views and modified some of the beliefs and values Laissez-faire capitalism needed to consider workers’ rights and develop a social conscience Factory owners who wanted to avoid the growing demand for labour unions gave workers some special benefits. This is known as welfare capitalism. This also refers to government programs that would provide social safety nets for workers
Labour Rights How do workers’ rights today compare to those in the 19 th, or even early 20 th century?
President Theodore Roosevelt He wanted capital and labour (profits and workers’ rights) to be treated fairly He called this the square deal He went on to found a new political party-The National Progressive Party-whose platform contained this new kind of liberalism, sometimes called progressivism
Progressivism Goals: ◦ Securing equal suffrage to men and women alike ◦ Conservation of human resources (workers’ rights, prohibit child labour, etc. ) ◦ Implement a single national health service Most of this early legislation dealt with workers’ rights. It failed to address issues such as child poverty, education, housing standards, etc. Also, when WW 1 broke out the government needed the support of factory owners for the war effort.
The Gilded Age “What is the chief end of man? – to get rich. In what way? – dishonestly if we can; honestly if we must” Mark Twain, 1871 The Gilded Age refers to substantial growth in population in the U. S. and extravagant displays of wealth and the late 19 th century.
The Robber Barons Men like John D. Rockfeller and Andrew Carnegie made huge fortunes and exemplified the “American Dream”.
Trusts and Trust Busting These men created their wealth, in part, through the creation of trusts. Trusts were ways of reducing competition and fixing prices. They were essentially monopolies. In the 1880 s the American people began to demand effective regulation of the trusts. In 1890 Congress passed the Sherman Anti-Trust Act In Canada it is called the Combines Investigation Act of 1910/1977.
Ineffectiveness In U. S. v E. C. Knight and Company, the U. S. Supreme Court in 1895 held that the mere control of 98% of the sugar refining of the country did not in itself constitute an act in restraint of trade. Congress failed to amend the Act and the executive (Presidents) did little to enforce it.
Social Darwinism The power held by rich businessmen was justified by Social Darwinism which at this time was based on several beliefs: 1. 2. 3. The best form of government was that which governed the least. The acquisition of wealth was a mark of divine favour, and that the rich therefore had a moral responsibility both to get richer and to direct the affairs of society. ‘Survival of the fittest ’ as applied to human society. In short, it was believed that America was a business civilization and should be kept that way. ‘The chief business of the American people is business ’ ◦ President Calvin Coolidge (1872 - 1933), Speech in Washington, Jan. 17, 1925
Extremes in Wealth The laissez-faire approach to the American economy did lead to great wealth and power for some. However, it also lead to great poverty for many. In 1890, 11 of the 12 million people living in the U. S. earned less than $1200/yr. Of that group, the average annual income was $380 (far below the poverty line).
Progressivism This extreme disparity in wealth soon came to light and began a movement toward change in the social, political and economic structure of U. S. society. That is, it led to a change in the implementation of classical liberal ideology. This movement toward change was called Progressivism.
The Results of Progressivism This term referred to a classical liberal economic system combined with a government that used legislation to give workers protections such as limited working hours and a minimum wage, and a safety net with features like pensions and medical insurance. The muckrakers helped create a demand for changes to the classical liberal system of the U. S. Lead by President Theodore Roosevelt and his “Square Deal”, the U. S. government took action to change the social, political and economic structure of the country.
The Results of Progressivism • Changes through Legislation: 1890 – The Sherman Antitrust Act -Outlaws monopolies and practices that result in the restriction of trade, such as price fixing. 1906 – The Hepburn Act -Required railroads to obtain permission from the Interstate Commerce Commission before raising rates. 1906 Meat Inspection Act • ◦ Required the federal inspection of meat processing to ensure sanitary conditions. Pure Food and Drug Act -Outlawed interstate transportation of impure or diluted foods and the deliberate mislabeling of foods and drugs. 1913 Department of Labour -Cabinet department was created to protect and promote the welfare and employment of working people. th Amendment 16 Gave Congress the power to levy an income tax 17 th Amendment Direct election of Senators
As a Result there was a shift towards the Welfare State The movement from welfare capitalism to a was spurred by the Great Depression A welfare state is a state in which the economy is capitalist, but the government uses policies that directly or indirectly modify the market forces in order to ensure economic stability. The Great Depression became a catalyst for change, and what began to emerge was as we know it today
Classical Liberalism Focuses on greater individual freedom and economic freedom Modern Liberalism Freedom comes from equality of opportunity
Economic Views Classical Liberalism The government should not interfere in the economy. If everyone knows that good times are followed by bad times, then it is everyone’s responsibility to save for the bad times. Welfare State The government should balance out the highs and lows of the economic cycle by raising/lowering taxes, government spending, and interest rates. Keynes supported this.
Keynes’ Demand Side Economics More money in your pockets: Governments should spend money in a recession to reduce its severity. It should also reduce taxes. Less money in your pockets: Governments should spend less money in boom times to soften a boom. It should also raise taxes.
John Maynard Keynes
The Haymarket Riot Read the Skill Path on pages 151 -153 and answer questions 1 -3.
The Great Depression
USA Govt. Intervention The US Government from 1939 -1970’s began to intervene in their economy through the following methods: Monetary Policies Fiscal Policies Nationalization of Key Industries Regulation DSE But it also sent the US into a Debt heavy nation.
GREAT DEPRESSION WAGES DID NOT INCREASE AS RAPIDLY AS DID PRODUCTIVITY DEMAND FOR GOODS COULD NO LONGER KEEP UP WITH INCREASED SUPPLY DROUGHTS IN MID-WEST = DUST BOWL BANKS FAILED DEPRESSION SPREAD TO OTHER COUNTRIES = DISCOURAGED CONSUMERS FROM BUYING U. S. GOODS PROTECTIONISM & TARIFFS
The Great Depression period of greatly depressed economic activity across the globe caused by: ◦ difficulty of returning economy to peacetime basis after WW 1 ◦ overproduction of goods (result of new technology) in many countries making it hard to sell excess goods ◦ trade barriers erected between countries further limiting trade ◦ income unequally distributed, consumer unable to buy great quantities of goods required to make economy grow ◦ over speculation of stock markets (Black Thursday stock market crash)
GREAT DEPRESSION CONT. . . RICH –POOR GAP 5% OF POPULATION EARNED 1/3 OF COUNTRIES PERSONAL INCOME 25% UNEMPLOYMENT 100, 000 BUSINESSES WENT BANKRUPT 5 000 BANKS FAILED WAGES FELL 40%
Roosevelt New Deal
The “New Deal” Franklin D. Roosevelt (Theodore Roosevelt’s distant cousin) was president of the United States from 1933 -1945 He was the first to convert to Keyne’s theories He implemented massive public works programs to put people to work He called it the “New Deal, ” an echo of Theodore Roosevelt’s “square deal. ” This represented the beginning of a shift to the welfare state and a mixed economy (capitalism with government intervention)
ROOSEVELT’S NEW DEAL ELECTED PRESIDENT IN 1932 IMPLEMENTED KEYNES IDEAS ALPHABET LAWS ◦ NRA: NATIONAL RECOVERY ADMINISTRATION ◦ PWA: PUBLIC WORKS ADMINISTRATION ◦ CCC: CIVILIAN CONSERVATION CORPS ◦ TVA: TENNESSEE VALLEY AUTHORITY ◦ SEC: SECURITIES EXCHANGE COMMISSION ◦ FDI: FEDERAL DEPOSIT & INSURANCE COMMISSION ◦ SSA: SOCIAL SECURITY ACT ◦ NLRB: NATIONAL LABOR RELATIONS BOARD
ROOSEVELT-AN EVALUATION FAILURE – DID NOT END THE DEPRESSION UNEMPLOYMENT LEVELS STILL HIGH FAILED TO REACH THE POOR ECONOMY DID NOT FULLY RECOVERY UNTIL WW II PRODUCTION SUCCESS- LAID FOUNDATION FOR AMERICAN WELFARE SYSTEM SUCCESS –GOVT RECOGNIZED A RESPONSIBILITY TO HELP UNEMPLOYED & THE NEEDY GOVT USED DEFICIT SPENDING FOR FIRST TIME TO STIMULATE ECONOMY GOVT NOW SHOULD TAKE ACTION IN RESPONSE TO FLUCTUATIONS IN BUSINESS CYCLE
Roosevelt’s New Deal Roosevelt elected in 1932 as a Democrat instituted New Deal soon after taking office, relied on top strategists as advisors known as “Brain Trust” goal was to provide relief to people, recovery for business and reform for the syste Congress in 1933 allowed expenditures of billions to help people in need of shelter and food, public works programs set up to provide work and basic wages (known as First Hundred Days) money also spent to develop industry and better working conditions for industrial workers government contracts given to private companies to build roads, airports, waterworks, hospitals and ships, largest hydroelectric dam project created by Tennessee Valley Authority (TVA)) Roosevelt appealed to industry to adopt a code of fair competition lowering hours of work setting fair prices setting a minimum wage recognizing trade unions companies complying with this code got to display a Blue Eagle in their windows Roosevelt's Social Security Act of 1935 provided: unemployment insurance to protect workers thrown out of work through no fault of their own old age pensions for workers who retired at age 65
Opposition to the New Deal wealthy people called Roosevelt traitor to his class businessmen were upset about his attitude that some of them were unscrupulous money-changers opponents formed the American Liberty League in 1934 to try and get rid of Roosevelt from 1933 -1936 many of his proposed bills were ruled unconstitutional by Supreme Court
By the 1950 s and 60 s, the welfare state was reality in most democratic countries, including Canada, and modern liberalism was in place.
Supply Side Economics in USA Supply-side economics economic theory that concentrates on influencing the supply of labour and goods as a path to economic health, rather than approaching the issue through such macroeconomic concerns as gross national product. In the United States during the 1980 s, supply-side economics was associated with conservative proponents of the free-market system. Such measures as tax cuts and benefit cuts to the unemployed are basic supply-side tactics, with the intention of increasing the incentive to work and produce goods and services. The theory holds that high marginal tax rates and government regulation discourage private investment in areas that fuel economic expansion, and that more capital in the hands of the private sector will "trickle down" to the rest of the population. The theory gained popularity during the late 1970 s, with a tax revolt in California and economic hardship during the Carter administration (1977 -81). Arthur Laffer and his "Laffer curve" doctrine became the heart of the economic programs of Ronald Reagan 's presidency, during which tax rates were cut substantially. Although supply siders maintain that the tax cuts of the 1980 s were responsible for the decade's economic growth, critics argue that such policies caused massive federal deficits, penalized the poor and middle class, and induced excessive speculation that severely damaged America's economy. The subsequent tax increases under Presidents George H. W. Bush and Bill Clinton and the concurrent corporate investment, economic growth, and drop in unemployment during the 1990 s further undercut supply-side suppositions.
Clinton’s Demand Side Methods The Clinton presidency claims to have solely been responsible for the following: Average economic growth of 4. 0 percent per year, compared to average growth of 2. 8 percent during the previous years. The economy grew for 116 consecutive months, the most in history. Creation of more than 22. 5 million jobs—the most jobs ever created under a single administration, and more than were created in the previous 12 years. Of the total new jobs, 20. 7 million, or 92 percent, were in the private sector. Economic gains spurred an increase in family incomes for all Americans. Since 1993, real median family income increased by $6, 338, from $42, 612 in 1993 to $48, 950 in 1999 (in 1999 dollars). Overall unemployment dropped to the lowest level in more than 30 years, down from 6. 9 percent in 1993 to just 4. 0 percent in January 2001. The unemployment rate was below 5 percent for 40 consecutive months. Unemployment for African Americans fell from 14. 2 percent in 1992 to 7. 3 percent in 2000, the lowest rate on record. Unemployment for Hispanics fell from 11. 8 percent in October 1992 to 5. 0 percent in 2000, also the lowest rate on record. Inflation dropped to its lowest rate since the Kennedy Administration, averaging 2. 5 percent, and fell from 4. 7 percent during the previous administration. The homeownership rate reached 67. 7 percent near the end of the Clinton administration, the highest rate on record. In contrast, the homeownership rate fell from 65. 6 percent in the first quarter of 1981 to 63. 7 percent in the first quarter of 1993. The poverty rate also declined from 15. 1 percent in 1993 to 11. 8 percent in 1999, the largest six-year drop in poverty in nearly 30 years. This left 7 million fewer people in poverty than there were in 1993. The surplus in fiscal year 2000 was $237 billion—the third consecutive surplus and the largest surplus ever. Clinton worked with the Republican-led Congress to enact welfare reform. As a result, welfare rolls dropped dramatically and were the lowest since 1969. Between January 1993 and September of 1999, the number of welfare recipients dropped by 7. 5 million (a 53 percent decline) to 6. 6 million. In comparison, between 1981 -1992, the number of welfare recipients increased by 2. 5 million (a 22 percent increase) to 13. 6 million people
G. W. Bush Economic Plan Priorities: balance budget; stop earmarks; fix entitlements. (Jan 2007) Fact Check: Deficit is increasing substantially this year. (Feb 2006) Fact Check: Overall spending increased 42% under Bush. (Feb 2006) Spending cuts will reduce deficit to half by 2009. (Jan 2006) Protectionists want to escape competition. (Jan 2006) Cut non-security discretionary spending every year. (Jan 2006) Confront the larger challenge of entitlements spending. (Jan 2006) Limit discretionary spending; cut 150 non-essential programs. (Feb 2005) Pay-as-you-go means you pay, he goes and spends. (Oct 2004) The middle class will have to fill the Kerry tax gap. (Oct 2004) Kerry is not credible as a fiscal conservative. (Oct 2004) Kerry will not be able to pay for $2. 2 T in new spending. (Oct 2004) Bush ties growing economy to his tax cuts. (Mar 2004) Investment and aid to states will help economy rebound. (Aug 2003) Provides assistance to new small businesses. (Aug 2003) Reframed Clinton from economic prosperity to moral failing. (Jun 2003) Restore consumer confidence with tax cuts & new oil supplies. (Mar 2001) Despite prosperity, “It’s time for a change” in Washington. (Oct 2000) Prosperity results from entrepreneurship & ingenuity. (Oct 2000) Private sector responsible for economic boom. (Aug 2000) Make budget biennial; reinstate line-item veto; target pork. (Jun 2000) $46 B in new spending on health, education, & defense. (Apr 2000) New Prosperity Initiative: remove obstacles to advancement. (Apr 2000) Simplify tax code to stimulate economic growth. (Apr 1999)
Canada’s Government Intervention 1930’s. Canada moved to the left. 1960’s-1970’s overspending moved Canada to the right in the 1980& 1990’s Today in 2009 Canada is currently in a recession and we are sliding back toward the left. What follows is a description of Canada government intervention.
Monetary Policy The cornerstone of the Bank's monetary policy framework is its inflation-control system, the goal of which is to keep inflation. Inflation is a persistent rise overtime in the average price of goods and services. near 2 per cent — the mid-point of a 1 to 3 per cent target range. This system provides a clear measure of the effectiveness of monetary policy, and increases the predictability of inflation. The Bank is equally concerned with significant movements in the inflation rate, both above the 2 per cent mid-point and below it. When demand. The level of demand for Canadian goods and services. is strong, it can push the economy against the limits of its capacity to produce. This tends to raise inflation above the midpoint, so the Bank will raise interest rates to cool off the economy. When demand is weak, inflationary pressures are likely to ease. The Bank will then lower interest rates to stimulate the economy and absorb economic slack.
Bank of Canada The Bank carries out monetary policy by influencing short-term interest rates. It does this by raising and lowering the target for the overnight rate. (The "overnight rate" is the interest rate at which major financial institutions. Banks, credit unions and similar credit-granting organizations. borrow and lend one-day (or overnight) funds among themselves. ) In November 2000, the Bank introduced a system of eight "fixed" dates each year on which it announces whether or not it will change the target for the overnight rate. Changes in the target for the overnight rate usually lead to changes in other interest rates, and so affect people's spending decisions. This, in turn, influences the level of demand for goods and services. When demand exceeds supply, prices will rise. Low, stable and predictable inflation is the best contribution that monetary policy can make to a productive, well-functioning economy. It allows Canadians to make spending and investment decisions with more confidence. This encourages longer-term investment in Canada's economy, and contributes to sustained job creation and greater productivity. This in turn leads to real improvements in our standard of living.
Valuation of Currency Factors Affecting Currency Value: 1. Political Conditions in the Country - This includes the stability of the government, the amount of corruption, bribery and the degree of law and order. Also includes a country's relationships with other countries and especially their relationship to US, UK, China and Russia. The form of government in the country is also a factor used to assess the value of a currency. Consider the widely varying forms of government in Saudi Arabia, China, UK, Venezuela and Thailand, just to name a few. 2. Economic Situation - This includes factors such as jobs, unemployment, work ethic, infrastructure, inflation and direction of the economy. Is it older or newer in orientation; computers and high tech, or more farming and manufacturing. 3. Perception from Outside - The perceptions and attitudes of other countries toward a country are as important as the reality of the country's actual situation. News, media, movies, newspapers, rumors and spin can create perceptions. How much is known about a country? The less that is known, generally, the lower the value of a currency. 4. Demographics - A young population may mean better prospects for the future, people who are more open to change and development and a growing size of the workforce. The overall population of a country is a factor. How much weight does this country have on the world scene. 5. National Leaders - The openness, trustworthiness and likeability of visible leaders is a factor. This includes political leaders, sports figures, business owners and celebrities. Here are some national figures who affect their countries, either for better or for worse. Kim Jung Il, David Beckham, Nicole Kidman, Madonna, Osama bin Laden, Barack Obama and Vladimir Putin. These help form the world's perception of a country. 6. Isolation versus Openness - Continuum China is becoming more open, more transparent. This helps. Cuba is very closed and isolated. Venezuela is becoming more isolated by some of its recent actions. China's markets are becoming more open. Cuba, Kyrgyzstan, Russia and Japan, all have differing levels of openness with the outside world, which affects the value of their currency. 7. Natural Resources - The kind of and amount of exploitation of a country's natural resources certainly helps create a perception of value, or lack thereof, of a country's currency. Mining of minerals, forests, oil, fish and other resources are considered. Also the level of technology to development these resources. 8. Weather Factors such as drought, tsunamis, earthquake and floods are taken into consideration. How frequent are they and how is the country's response to them. These also affect desirability, safety and perception of a country. Is it a tourist destination? 9. War and Conflicts - With which other country is a country at war, and who is it’s allies? Their military strength and technology, their willingness to go to war and for what, are important factors in assessing a country's strength, stability and the value of its currency. 10. Education - This includes languages spoken, level of computer know-how, Internet connectedness, culture and religion. Scientists, entrepreneurs, authors and inventors are all affected by the type and quality of education in a country. In conclusion, currency values are determined by many factors. Not just one issue, but a composite of many must be considered. In trading currencies, such as in FOREX, trades are usually made in pairs. Values must be relative to something. So how is a country doing relative to another country is also significant. Common Forex pairs are US dollar and Japanese yen, Euro and US dollar, for example. These and other factors determine the value of a currency. Some are tangible, some intangible. Some are fixed and some are manageable. Sometimes it is the news of the moment and sometimes the long-term situation. That is why currency values are often changing and there is no one place or person who determines currency values. And why currency exchange, based on fluctuating currency values, can be an exciting, lucrative, volatile, fun or disastrous form of business or investment.
Fiscal Policy Fiscal policy is the use of government taxing and spending powers to affect the behaviour of the ECONOMY. USA taxes 25 -35% Canada taxes 35 -45% Sweden taxes 50 -60%
Social Spending USA: UEd, Welfare, OAP Canada: UEd, UHC, Welfare, OAP, Low Cost Housing, UDC, Workman Compensation, etc. Sweden: Ued K-PS, UHC, UDC, UEC, UDC, Welfare, Low Cost Housing, Workman Compensation, U Recreation, etc
FOUR AREAS OF GOVERNMENT INTERVENTION Laws & regulations Government owned and operated companies Budget & financial policies Income redistribution
Government Laws & Regulations Pollution controls Fairness laws Minimum wage acts Health & Safety standards Old age pensions Food inspection Ex. Agriculture industry ◦ Protect animals and H 20 and forests ◦ No false advertising or discrimination ◦ Competition laws to prevent monopolies ◦ Children’s toys meet standards ◦ Restaurant kitchens are sanitary ◦ Marketing boards influence food prices using crop controls & quotas ◦ Food inspection ◦ Subsidies ◦ Gov’t negotiated sales to foreign countries
Government Laws & Regulations Feds – control money, import duties, regulate banks Province – regulate occupations – doctors, lawyers Municipal – control # of taxes & laws about transport Anti-Trust Laws in the US Anti- Monopoly Law in Canada: Combines Investigation Act of 1910
Deregulation 1990’s in Canada A reduction of government restrictions on business enterprises Less government = more efficient Ex. Preston Manning & Reform party promised to ◦ Reduce size of fed govt Ex. Mike Harris repealed labor laws ◦ that banned hiring of replacement workers during strikes ◦ Ended rent controls ◦ Made easier for landlords to evict tenants
Government-Owned Business Nationalization Major government intervention during World War II Continued this thinking after war Crown Corporation – a business enterprise owned by government and operated by a government-appointed management team ◦ ◦ Generate profit for government Control over strategic industries To create full employment Government intervenes to combat ups and downs of business cycle
Government-Owned Business 1960 -1979: 60% of public enterprises created Petro-Canada 1975: government desire to get revenue 1980 s – 300 federal crown corporations, 230 provincial, 300 jointed owned Government control in ◦ Electrical power ◦ Transportation ◦ communications
Reasons for Government-Owned Business To control an area of the economy necessary for general welfare Help stimulate regional development Produce goods vital to country’s security Provide services that others unwilling To earn income for government To rescue bankrupt firm essential to a region To maintain public morality To help stabilize the economy
Privatization 1980 s – Thatcher, Reagan, Mulroney, Klein, Harris Popular b/c ◦ ◦ Government bureaucracies too big Ideological climate Drain on treasury Ex. Airline industry
1970 s – Keynesian ideas not working Cut taxes & increase spending = not working Neo-conservatives: slash spending Critics say not taxing enough on rich and businesses
Ralph Klein 1990 s Closed hospitals Cuts to education Cuts to social programs Reduced salaries for civil servants 4500 fewer government jobs
Welfare Capitalism Demogrants Social-insurance programs Transfer program Progressive taxes
The Extension of Equality How did the concept of equality expand?
Labour Standards and Unions Labour standards reforms were welcomed by workers but these reforms were set up by the government and capitalists. The workers had no say in their development. In the 19 th century some workers formed unions so they could bargain collectively and go on strike if needed. Benefits and rights to workers slowly developed
In 1948, the UN incorporated two articles on labour in the Universal Declaration of Human Rights Read articles 23 & 24 on page 155 of your text
Universal Suffrage Classical liberalism proclaimed the equality of men, but not all men. Only certain men were considered “equal” and in most cases women were not included. In many cases only certain races, economic classes, religious members, etc were permitted to vote while others were excluded. Women weren’t permitted to vote until much later (depending on the nation) and, in some cases, still do not have the right to vote
Equality for Women - at its simplest, is the belief that men and women are to be treated equally in every respect. Although classical liberalism provided a way of thinking that allowed feminism to emerge, paradoxically, very few of the classical liberal thinkers were willing to concede any rights to women. Many suffragists argued for women’s rights (Mary Wollstonecraft, Nellie Mc. Clung, etc). Canada gave women the right to vote nearly 100 years ago but some nations still haven’t given women the vote