Transcript 1.Modern_Liberalism_Chapter_4

Chapter 4
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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:
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Led by Neil Ludd
Textile workers who were being replaced by
machines during industrialization broke into
factories and broke
machinery in the 1800s
This became a
movement
known as Luddism
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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
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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
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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
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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
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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
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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).
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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
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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
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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
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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
How do workers’ rights today
compare to those in the 19th,
or even early 20th century?
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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
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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
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Most of this early legislation dealt with
workers’ rights. It failed to address issues
such as child poverty, education, housing
standards, etc.
Also, when WW1 broke out the government
needed the support of factory owners for the
war effort.
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“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 19th century.
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Men like John D.
Rockfeller and Andrew
Carnegie made huge
fortunes and
exemplified the
“American Dream”.
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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 1880s 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.
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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.
The power held by rich businessmen was justified
by Social Darwinism which at this time was based
on several beliefs:
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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
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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).
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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.
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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.
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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
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Meat Inspection Act
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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.
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16 Amendment
Gave Congress the power to levy an income tax
17th Amendment
Direct election of Senators
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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
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Focuses on greater
individual freedom and
economic freedom
Modern Liberalism
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Freedom comes from
equality of opportunity
Classical Liberalism
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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
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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.
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.
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.
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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
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period of greatly depressed economic activity
across the globe caused by:
◦ difficulty of returning economy to peacetime basis after
WW1
◦ 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)
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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%
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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)
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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
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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 elected in 1932 as a Democrat
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instituted New Deal soon after taking office, relied on top strategists as advisors
known as “Brain Trust”
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goal was to provide relief to people, recovery for business and reform for the syste
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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)
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money also spent to develop industry and better working conditions for industrial
workers
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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
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lowering hours of work
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setting fair prices
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setting a minimum wage
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recognizing trade unions
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companies complying with this code got to display a Blue Eagle in their windows
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Roosevelt's Social Security Act of 1935 provided:
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unemployment insurance to protect workers thrown out of work through no fault of
their own
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old age pensions for workers who retired at age 65
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wealthy people called Roosevelt traitor to his class
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businessmen were upset about his attitude that some
of them were unscrupulous money-changers
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opponents formed the American Liberty League in
1934 to try and get rid of Roosevelt
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from 1933-1936 many of his proposed bills were
ruled unconstitutional by Supreme Court
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By the 1950s and 60s, the welfare state was
reality in most democratic countries,
including Canada, and modern liberalism was
in place.
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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 1980s, 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 1970s, 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 1980s 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 1990s further undercut supplyside suppositions.
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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
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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 $2.2T 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)
$46B 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)
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1930’sCanada moved to the left.
1960’s-1970’s overspending moved Canada
to the 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.
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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 demandThe 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.
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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.
Factors Affecting Currency Value:
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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.
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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%
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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
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Laws & regulations
Government owned and operated companies
Budget & financial policies
Income redistribution
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Pollution controls
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Fairness laws
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Minimum wage acts
Health & Safety standards
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Old age pensions
Food inspection
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Ex. Agriculture industry
◦ Protect animals and H20 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
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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
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A reduction of government restrictions on
business enterprises
Less government = more efficient
Ex. Preston Manning & Reform party
promised to
◦ Reduce size of fed govt
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Ex. Mike Harris repealed labor laws
◦ that banned hiring of replacement workers during
strikes
◦ Ended rent controls
◦ Made easier for landlords to evict tenants
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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
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Generate profit for government
Control over strategic industries
To create full employment
Government intervenes to combat ups and downs
of business cycle
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1960-1979: 60% of public enterprises
created
Petro-Canada 1975: government desire to
get revenue
1980s – 300 federal crown corporations,
230 provincial, 300 jointed owned
Government control in
◦ Electrical power
◦ Transportation
◦ communications
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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
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1980s – Thatcher, Reagan, Mulroney, Klein,
Harris
Popular b/c
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◦
◦
◦
Government bureaucracies too big
Ideological climate
Drain on treasury
Ex. Airline industry
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Cut taxes & increase spending = not working
Neo-conservatives: slash spending
Critics say not taxing enough on rich and
businesses
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1990s
Closed hospitals
Cuts to education
Cuts to social programs
Reduced salaries for civil
servants
4500 fewer government
jobs
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Demogrants
Social-insurance programs
Transfer program
Progressive taxes
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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 19th century some workers formed
unions so they could bargain collectively and
go on strike if needed.
Benefits and rights to
workers slowly
developed
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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
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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
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- 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 McClung, etc).
Canada gave women the right to vote nearly 100
years ago but some nations still haven’t given
women the vote