Transcript The Wizard of Oz - Wayzata Public Schools

Populism and Free Silver
in the 1890s
aka: The Wizard of Oz meets
Monetary Policy
Get your clicker! Ch 48!
Goals: SWBAT…
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Identify and explain
basic micro and
macro economic ideas
Apply these ideas to
explain and analyze
the Populist and Free
Silver movements of
the 1890s
Examine The Wizard
of Oz as a Monetary
Allegory
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
Our Agenda Today
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Economics Basics
Late 1800s Monetary Policy
Populism and the Wizard of Oz
I understand the economics behind
Populism and Free Silver.
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Strongly disagree
Disagree
Agree
Strongly agree
Intro to Econ: Key Terms
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Demand, Supply, and Price
Fiscal Policy
Monetary Policy
Money Supply
Business Cycle
Tariff
Recession
Inflation and Deflation
http://www.thebluecollarinvestor.com/blog/wp-content/uploads/2008/11/business-cycle-graph-better.jpg
http://priyankaseconomicblog.files.wordpress.com/2009/10/calvin-on-supply-and-demand3.jpg
Intro to Econ
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What causes prices to go up?
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Demand Change vs. Supply Change
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Inflation vs. Deflation
Economics of the 1890s
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If Demand goes down….
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If Supply goes up….
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DEFLATION! Prices go down!
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What was happening to crop prices in the
late 1800s? Why?
What was happening to farm costs (i.e.,
mortgages, manuf. goods) in the late
1800s? Why?
I have a better understanding of
how supply and demand impact
prices.
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Strongly disagree
Disagree
Agree
Strongly agree
Economics of the 1890s
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Very high tariffs (taxes on imports)
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Agric. prices down (1860s to 1890s)
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Depression of 1893
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Why did farmers want inflation?
http://www.flickr.com/photos/farlane/3791930988/in/set-72157601329141029/
Economics of the 1890s
Economics of 1890s
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Is inflation bad?
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Yes for creditors (i.e., bankers)
No for debtors (i.e., farmers)
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Some inflation is healthy, necessary
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Why did farmers want inflation?
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http://www.cthistoryonline.org/cdm-cho/cho/journeys/j_life_rural_farm.html
The government should have
helped farmers more.
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Strongly disagree
Disagree
Agree
Strongly agree
Government and Economy
A Short Digression…
 Capitalism?
 Communism?
 Socialism?
Government and Economy
A Short Digression…
 Capitalism?
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Adam Smith
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The Wealth of Nations (1776)
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Laissez Faire, Free Market should replace
Mercantilism
Allow for competition to “naturally”
regulate economy
Government and Economy
A Short Digression…
 Communism?
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Karl Marx and Friedrich Engels
The Communist Manifesto (1848)
Capitalism will collapse, Proletariat will rise
up and overthrow Bourgeoisie
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Stateless, Classless  Total equality
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Not quite Lenin or Mao
Government and Economy
A Short Digression…
 Socialism?
Great variation
 Parts of W. Europe and N. America today
 Government control or regulation of some
parts of economy
 Schools, healthcare, “natural” monopolies;
More worker and consumer protection
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Government and Economy
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How can the government influence the
economy?
Fiscal Policy: taxes and/or spending
Monetary Policy: money supply and/or
interest rates
Today the Federal Reserve Bank (The
FED) is in charge of Monetary Policy
http://www.fotosearch.com/illustration/inflation.html
Government and Economy
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Traditional Economics?
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Mercantilism  Free Market Capitalism
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Wealth of Nations by Adam Smith (1776)
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The Government should stay out of the
economy
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Recessions are good!
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Reality?
Government and Economy
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Monetary Policy to stimulate the
economy…
Increase the money supply and/or lower
interest rates
Risks?
Could lead to inflation, but unlikely
if in a recession
WARNING: The economy is a moving
target!
Government and Economy
Recessions During the 1800s:
 Panic of 1819
 Panic of 1837
 Panic of 1857
 Panic of 1873
 Depression of 1893
(FYI – Great Depression begins in 1929)
Government and Economy
High Tariffs During the 1800s:
 Tariff of 1816 – 15 to 20 percent
 Tariff of 1824 – Whig Party and Henry Clay
 Tariff of 1828 – 50 percent
 Tariff of 1832 – down slightly
 Tariff of 1857 – Democrats lower tariff
 Morrill Tariff of 1861 – 47 percent
 “mongrel” Tariff Act of 1883
 McKinley Tariff Act of 1890
 Dingley Tariff of 1897 – over 50 percent!
(FYI – Hawley-Smoot Tariff of 1930)
Government and Economy
Monetary Policy During the 1800s:
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It was a mess!
First Bank of the US (1791-1811)
Second Bank of the US (1816-1836)
Banks, States, and Federal govt printed
money
Federal govt wanted no debt
Government and Economy
Monetary Policy During the 1800s:
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Mint Act of 1792
unlimited Silver & Gold at 15:1
“Crime of 1873” – govt. stopped minting
silver
USA essentially on gold standard in 1879
Sherman Silver Purchase Act (1890) not
enough, and soon repealed
Government and Economy
Monetary Policy During the 1800s:
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Market value vs. Official value
By 1894 Market value was over 30:1
(i.e., 30 silver = 1 gold)
Populists wanted govt to resume minting
silver at 16:1
FREE SILVER!!
Government and Economy
Monetary Policy During the 1800s:
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What if Govt minted silver at 16:1 in 1890s?
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Money Supply?
Increase! But gold deposits would go down
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Inflation?
Not likely since recession
Government and Economy
Monetary Policy During the 1800s:
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Gresham’s Law named for Sir Thomas
Gresham (1519-1579)
“When a government compulsorily
overvalues one type of money and
undervalues another, the undervalued
money will leave the country or disappear”
aka: “Bad money drives out good money”
Government and Economy
Monetary Policy During the 1800s:
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According to Gresham’s Law, if
Populists get their way, Gold is….
Good Money that will be undervalued
and driven out of circulation, perhaps
out of the country
Bankers think silver is “bad”
I have a better understanding of
U.S. government monetary
policy of the 1800s.
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1234-
Strongly disagree
Disagree
Agree
Strongly agree
The Rise of Populism
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1894 Unemployment over 18 percent
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Tariff very high
Farmers caught in a debt cycle
1869-1896 crop prices down 55 percent!
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Farmers Revolted and Organized!
Granger movement (1860s to 1880s)
Farmers Alliance (1880s)
People’s Party formed in 1890s
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The Election of 1896
Republicans
 endorsed William McKinley
 High tariffs and gold standard
 Conservative “sound money” position
Democrats and Populists
 endorsed William Jennings Bryan
 Bimetallic standard (silver & gold) at 16:1
 WJB gave “Cross of Gold” speech
The Election of 1896
Republicans/McKinley won!
Democrats became party of “progressive”
reform
Populist party fades away; many positions
adopted by Democrats
The Election of 1896
Free Silver issue disappears: WHY?
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Gold Discoveries in 1880s and 1890s
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By 1897 Economy was improving
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1900 Gold Standard Act
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New focus in Imperialism
The Wizard of Oz
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Book written by Frank
Baum in 1900
Movie in 1939
What’s the story?
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
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Story begins in the
West (Kansas) as did
Populists
Dorothy?
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Heroine from poor farm
Represents honest, plucky
America
Mary Elizabeth Lease?
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
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Cyclone/Tornado =
Free Silver Movement
The Land of Oz?
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The Gold Standard
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Oz = Gold (ounce)
http://babycreativeblog.files.wordpress.com/2009/10/tornado-4.jpg
http://www.open2.net/blogs/media/blogs/39197167_gold.jpg
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
Wicked Witch of the
East (WWE)
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House lands on and
kills
= Eastern business
interests, Grover
Cleveland
Silver shoes put on
Dorothy
http://www.babygadget.net/pics/silver-shoes.jpg
http://www.physicsdaily.com/physics/Grover_Cleveland
The Wizard of Oz
Yellow Brick Road?
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= Gold
Emerald City?
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Washington DC
http://www.lonelyplanet.com/maps/north-america/usa/washington-dc/map_of_washington-dc.jpg
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
Scarecrow needs?
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Appear brainless, but
smart
= western farmers
http://www.flickr.com/photos/farlane/3791930988/in/set-72157601329141029/
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
Tin Woodman needs?
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Once flesh and blood;
needs bigger, kinder
heart
= industrial workers
http://www.uni.edu/schneidj/webquests/adayinthelife/lotsofworkers.jpg
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
Cowardly Lion needs?
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= WJB
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Stopped fighting for silver
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Fell asleep in….?
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Poppy Fields =
Imperialism
http://www.old-picture.com/american-history-1900-1930s/pictures/Jennings-William-Jennings.jpg
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
Travel to Emerald City?
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= Coxey’s march to
DC for job in 1894
Emerald Palace?
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= White House
Seven passages & three
flights of stairs?
= Crime of ‘73
http://blogs.ancestry.com/circle/wpcontent/uploads/2008/08/Coxeys%20Army.bmp
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
http://www.destination360.com/north-america/us/washington-dc/white-house
The Wizard of Oz
Dorothy and Friends must?
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Kill Wicked Witch of the West
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WWW = McKinley
Fate of WWW?
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Melts with water
Farmers in West need
rain to counter drought
Rain = inflation
http://4.bp.blogspot.com/_RMIeFF2Drjg/Snn9B2F1yNI/AAAAAAAABR8/62cV
VZGoBUM/s400/Mckinley.jpg
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
The Wizard?
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= Marcus Alonzo
Hanna, an advisor to
McKinley & head of
RNC
www.nndb.com/people/013/000101707/
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz
Wizard turns out to be
ordinary
Gang seeks help from Good
Witch of the South
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= supporters in South
problems are fixed
Dorothy uses silver shoes
to return to Kansas
http://www.starpulse.com/Movies/Wizard_Of_Oz,_The/gallery/WIZARDOZ007/
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
How did we do? SWBAT…



Identify and explain
basic micro and
macro economic ideas
Apply these ideas to
explain and analyze
the Populist and Free
Silver movements of
the 1890s
Examine The Wizard
of Oz as a Monetary
Allegory
http://bigpicture.typepad.com/comments/images/2008/07/14/inflation_recession_alligator.jpg
I think the Wizard of Oz accurately
reflects the people and issues of
the 1890s.
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


1234-
Strongly disagree
Disagree
Agree
Strongly agree
I understand the economics behind
Populism and Free Silver.




1234-
Strongly disagree
Disagree
Agree
Strongly agree
Thanks and
have a great
day!
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html