Evolution of Modern Liberalism
Evolution of Modern Liberalism
Election of Barack Obama
Barack Obama was elected on November 4th 2008, he won the vote with a 52.9% of the popular vote. There was a need for change in the US government after the market crash at the end of 2007. The people knew a more politically entered government would be able to help them out of the mess.
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Blairs Third Way
He ran for PM in 1997, and Blair was elected after Thatcher and he offered a third option politically. It combined some of Thatchers free market ideas, while also maintaining social programs, bringing Britain's economy into a mixed one.
Thatcherism was very far right and close t classical liberalism, but Blair offered a more centre of the spectrum platform, and policies, like a mixed market, the move wasn't quite to centre because there were still several policies from Thatchers reign
Reaganomics was based on the principles of Hayek and Freedman's theory, but US President Reagan more trickle down economics. He tried to use set wagers and prices to fix the economy again, but he wanted less involvement and so switched his tactics. He was a huge supporter of increased spending on the military.
Reagan moved farther right on the spectrum, as he implanted many ore classical liberal polices, and got rid of government involvement and social programs that would have gone with it
Thatcherism was very similar to Reaganomics. She tried to reduce the government involvement in the economy and moved to keep with more classical liberal principles. She changed the British economy by privatizing many publicly owned companies.
Thatcher, much like Reagan moved towards classic liberal state, and that shifted her right, but slightly to the left of where reaganism would be, as she did keep some of the publicly owned companies
Economic Crises of the 1970s
The United States withdrew from the Bretton Woods agreement, destabilizing it and causing many other countries to follow suit. There were then problems with the currencies of all the countries and they all lost their value. Making an even bigger mess, Egypt and Syria went to war with Israel, this impacted OPEC as America and Europe supposed on side and were cut off from OPEC imports. Theres was a period of stagflation which left the economy in a state of emergency.
After FRD's New Deal the economic crises took the economy further right as the US left several agreements and the economy was is a low, but they had been moving in the direction of classical liberalism ad using the laissez-faire was what wasn't working out for them
Monetarism happened because the US was looking to move back to Classical Liberalism, and monetarism is only having the government involve themselves when absolutely necessary. Hayek and Friedman came up with theory, which was supply-side economics. The economy was going though another pendulum swing.
Monetarism shifted back to the right after a period of many programs being created , it was shifted because the people of the United States were looking to move back towards the classical liberalism side
Taft and Sherman Anti-Trust Act
William Howard Taft, used this act to force the Standard Oil company to break up into 34 smaller companies. The Anti-Trust Act is used for breaking up monopolies. This is a United States Act. The reason this Act was important was that it helped to allow competition in the market.
Before Taft and used the Sherman Anti-Trust Act to break up the monopolies the US was much closer to classic liberal, but they moved close towards more of there centre of the spectrum. He used this Act to allow for more for the workers, which is why it moved left
The Roaring Twenties
Harding became president in 1921, and changed the political stance in the United States shifting them into a time of isolationism, nativism, and a decreased amount of government involvement. There was a Red Scare which brought this change into affect. The Roaring Twenties were a tie of peak capitalism in the US
Harding moved the country a bit to the left because though he was change the economy as it was booming, it shifted the state to have less involvement, but there were also more unionized work and monopolies coming int affect though the government
The Great Depression
The stock market crashed in 1929, and all the banks started to go under as they did not keep the money that everyone was trying to retrieve. There was mass unemployment in the United States and the economy was not good.
The Great Depression moved the economy further left because many more programs were needing to be put i to place to try af bring back the economy, and the government was seeing that they needed to get involved
FDR's New Deal
Franklin D Roosevelt created this to try and boost the economy for the American people. This Deal involved an increase in government spending to inject more money into the economy and cause and increase in jobs and therefore more money going to the workers. The economy was still trying to recover from the Great Depression
FRD's New Deal cause a shift left ebcwuse it ess using Keynes theory to introduce a way to boost the economy, while also allowing for the people to be supported, which is what the new deal was all about
Government Responses to the Depression
Prime Minister Bennett tried to fix the Canadian economy after the Depression by cutting government spending and using Laissez-Faire, which didn't really work. Then in 1935 he tried to introduce measures similar to the New Deal, but they were shot down by the courts. After that, King increased government involvement and created a Canadian mixed economy which helped grow the economy.
During the change that came with repairing the economy after the war ended, the economy moved further left because Bennett decided to continue with the Laissez-faire, although it had been proven to not work, and once King took office he was able to place programs into place that would allow for the shift left and help rebuild the economy back up
British economist John Maynard Keynes developed and economic theory in response to the Great Depression. It was based on demands-side economics. This theory was pert of what FRD used to come up with his New Deal. The theory entails that capitalism should be monitored and assisted by the government but it was still a good plan.
Keynes's ideas move the economy left again, which s due to the idea that the government needs to get involved to fix the economy, that they are the key.
Canada's Post-war Economy
The Canadian government decided to increase the amount of social programs to bring the economy back on track. Canada adopted many programs typical of a welfare state. The first of these was introduced in 1957.
During the change that came with repairing the economy after the war ended, the economy moved further left because the amount of programs that were introduced was increased to help the economy bounce back quicker.