Transcript bimetallism
WWII and Since Before 1941 1939, Poland 1940, low countries, France, etc US, underutilized industrial capacity Began producing munitions before 1941 Exports, esp. to Britain Output High Federal purchase Civil purchase fell Increased production in munitions How did the government allocate the resources? Commandeering Tax income and wealth Income tax Profit 40% of the spending Borrowing Monetizing the debt Treasury issued bonds and Fed bought them Price Control Office of Price Administration Price ceiling, quantity Problems? Quality More regulation! 6 page regulation on fruit cakes Forced upgrades Black market US economy after WWII 1945-1973 Rapid Growth @ 3% a year 1973-1995 1% 1995-2004 2.5% Features of Golden Age Stabilization FDIC Progressive tax rates Unemployment insurance US leader Free trade (RTA, GATT, etc) Stable Exchange Rate (Bretton Woods) Marshall Plan Labor relationships Higher education Social safety net Reduced inequality Until the 70’s Upward social mobility The Great Migration and the South South: Economic backward Impact of New Deal Before: low wage economy After: African Americans moved north What to do? Lure outside investors Selling of the South Since the national minimum wage Southern states actively lure industry Building plant spaces Advertising Tax incentives Loans Research Triangle in NC Civil Rights Revolution Discrimination in the workplace Occupation specific Economic incentives Employers? Were they good? Federal funding Outside capital Textiles: significant discrimination Education? Endogenous as well! Economic Impacts What are the benefits of integration? Efficiency? Textile employers Others? Education? Business climate Immigration Black business owners Revolution in women’s status Long-term trends Lower fertility Rising labor force participation Higher education level Contraceptives “endogenous” women’s group supported the research Divorce rate increases sharply in 80’s Changes in law (more states allowed unilateral divorce) Better able to support themselves Many more divorced, expectation and social norm Labor Force Participation Rate 2004 2001 1998 1995 1992 1989 1986 1983 1980 1977 1974 1971 1968 1965 1961 1956 1953 1950 1947 Female Percentage in College 70 60 50 40 Female Percentage 30 20 10 0 19 53 19 -54 57 19 -58 61 19 -62 64 19 -65 67 19 -68 69 19 70 71 19 -72 73 19 -74 75 19 -76 77 19 -78 79 19 -80 81 19 -82 83 19 -84 85 19 -86 87 19 -88 89 19 -90 91 19 92 93 19 -94 95 19 -96 19 97-9 99 8 -2 0 20 00 01 20 -02 03 -0 4 Female Percentage in Professional Schools 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Dentistry Medicine Law Changes after 1970’s Before: Women were enrolled in college but not many went to work After Co-ed Choice of majors Professional school enrollment increased Social norms and beliefs: women rejected from professional schools because they would not work Women did not apply in the first place Inequality Rise in Inequality Explanations? Skilled-biased technical progress Globalization Immigrants Institutional changes Skilled-biased technical progress College premium went up Why? Exogenous innovation? New technologies that required more skilled labor, thus demand for these workers increase So called “skilled-biased” technical progress Could be “endogenous” Globalization More international trade U.S. specialize in high-tech industries Raised high-tech wage Others Immigrants More unskilled immigrants Institutional changes Decline of unions Real minimum wage decreased “flexible” labor market Tolerance for wage differentials US works more Less regulation than western Europe Europeans retire early US works more Longer hours Inequality and upward mobility, fear of losing job Regulations: US works more because we can!