Economic Theories and Social Policies

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary difference between equality and equity?

Equality focuses on equal distribution of resources regardless of circumstances. (correct)

Equity prioritizes providing resources based on individual circumstances. (correct)

Equality is primarily concerned with profit-making.

Equity seeks to eliminate government intervention.

What characterizes capitalism as an economic system?

Government control of the economy for social equity.

A focus on universal entitlements and social welfare.

Private ownership of trade and industry for profit. (correct)

Public ownership of trade and industry for collective benefit.

What is a fundamental principle of neoliberalism?

A heavy emphasis on socialist principles.

Promoting government control over large businesses.

Support for extensive universal entitlements.

Caution towards government intervention and skepticism of entitlements. (correct)

What does institutional racism refer to?

The patterns of bias and discrimination within social institutions. Signup and view all the answers

What are some causes of discrimination?

Psychological, normative-cultural, and economic factors contribute. Signup and view all the answers

What term describes beliefs that members of certain groups behave in specific ways?

Stereotypes Signup and view all the answers

What is institutional discrimination often a result of?

Accepted beliefs and behaviors Signup and view all the answers

Which concept refers to the coexistence of various ethnic groups whose cultural differences are respected?

Cultural Pluralism Signup and view all the answers

What does ethnocentrism imply about one's own ethnic group?

It is superior to others Signup and view all the answers

What is a potential problem with the perspective of economic justice?

It may require surrendering economic freedom Signup and view all the answers

What was the primary aim of the Federal Emergency Relief Administration (FERA)?

To provide direct cash assistance to the impoverished Signup and view all the answers

Which program was designed specifically to improve public lands during the Great Depression?

Civilian Conservation Corps Signup and view all the answers

What does the Fair Labor Standards Act establish?

Minimum wage and youth employment standards Signup and view all the answers

The National Labor Relations Act is primarily concerned with which of the following?

Rights of employees to organize and bargain collectively Signup and view all the answers

What was the goal of the Farm Security Act?

To combat rural poverty Signup and view all the answers

What does the Federal Housing Administration aim to improve?

Housing standards and facilitate home financing Signup and view all the answers

The concept of 'values' is best described as which of the following?

Beliefs about what is good and desirable Signup and view all the answers

What type of organization does a Political Action Committee (PAC) represent?

A political fundraising group Signup and view all the answers

What does Keynesian economics advocate for during economic downturns?

Government should increase spending to stimulate the economy Signup and view all the answers

Which economist is most associated with modern conservative economics?

Milton Friedman Signup and view all the answers

What principle is associated with Social Darwinism regarding the poor?

The poor should be allowed to die out to promote social evolution Signup and view all the answers

What does the Principle of Less Eligibility imply?

A small income above a specified amount disqualifies one from assistance Signup and view all the answers

What was the primary purpose of the Settlement House Movement?

To assist immigrants and improve living conditions in slums Signup and view all the answers

How does Democratic Socialism differ from other forms of socialism?

It seeks radical change within a democratic framework Signup and view all the answers

What is a significant belief held by proponents of Modern Conservative Economics?

The market is self-correcting without government intervention Signup and view all the answers

What was a common characteristic of settlement houses during the Settlement House Movement?

They focused on addressing social issues through community involvement Signup and view all the answers

What describes a gig economy?

A system where individuals work in flexible, temporary jobs. Signup and view all the answers

What does the term 'underemployment' refer to?

Not able to work full-time despite wanting to. Signup and view all the answers

Which term best describes a persistent difficulty in finding work?

Chronic unemployment. Signup and view all the answers

What is the aim of the Living Wage Movement?

To require businesses to pay workers a living wage. Signup and view all the answers

What does 'flexicurity' combine?

Labor market flexibility with job security. Signup and view all the answers

Which policy focuses on helping individuals accumulate assets?

Asset-based Policy. Signup and view all the answers

Which labor market issue is characterized by unavoidable transitions?

Frictional unemployment. Signup and view all the answers

What does a 'pro-poor model' prioritize?

Reducing poverty and lessening inequality. Signup and view all the answers

What is defined as predatory services for a financially disadvantaged population?

America's Fringe Economy. Signup and view all the answers

What do Individual Development Accounts aim to achieve?

Accumulating assets to reduce wealth inequality. Signup and view all the answers

Study Notes

Keynesian Economics

Government intervention is necessary, especially in times of economic downturn.
Government should actively stimulate the economy through spending, especially when unemployment is high.

Modern Conservative Economics

Against active government intervention in the economy.
Advocate for limited government spending and a focus on free-market principles.

Believes in "survival of the fittest" and views poverty as a natural consequence of natural selection.
Opposes government assistance for the poor, arguing that it interferes with natural processes.

Democratic Socialism

Advocates for radical economic change within a democratic framework.
Criticizes the inherent nature of capitalism, believing it hinders the advancement of the public good.

The Principle of Less Eligibility

A system where benefits are designed to be lower than the lowest wage so that people are incentivized to work.
Ensures that social assistance is not seen as more attractive than working.

Settlement House Movement

Primarily established in immigrant neighborhoods, offering services like education, healthcare, and job training.
Founded by wealthy individuals, college students, and women who lived among the poor and sought to improve their conditions.

Equality vs Equity

Equality: Everyone is treated the same.
Equity: Everyone has access to the same opportunities, regardless of their unique situations.

Capitalism

An economic system where trade and industry are privately owned and operated for profit.
Characterized by competition and free markets.

Neoliberalism

Skeptical of large government intervention and universal entitlements.
More accepting of big businesses and market forces.

Exploitation

Treating someone unfairly to benefit from their work.

Institutional Racism

Systemic and ingrained patterns of discrimination and disadvantage embedded in social structures, policies, and practices.

Causes of Discrimination

Psychological: Based on personal biases and prejudices.
Normative-cultural: Rooted in societal norms and values.
Economic: Driven by competition for resources and power.

Feminism

Advocates for equal rights and opportunities for all genders.

Milford Conference

A significant conference that outlined the structure for delivering professional casework services during the Great Depression.

Federal Emergency Relief Administration (FERA)

A key relief program during the Great Depression that provided direct cash assistance to impoverished individuals and families.

National Recovery Act

Aimed to stimulate the economy during the Great Depression through public works projects and the creation of the Public Works Administration.

Civilian Conservation Corps (CCC)

A government work relief program that employed young men to improve public lands during the Great Depression.

Farm Security Act

Established to combat rural poverty during the Great Depression.

Federal Housing Administration (FHA)

A government agency that helped improve housing standards, stimulate construction jobs, and facilitate home financing.

Fair Labor Standards Act

Sets minimum wage, overtime pay, recordkeeping, and youth employment standards for both private and public sector workers.

National Labor Relations Act

Protects the rights of private sector employees to organize, bargain collectively, and strike.

Ideology

A system of beliefs and values that shape a person's worldview.

PAC

Political Action Committee: A group that raises and spends money to support or oppose political candidates.

Values

Assumptions, convictions, or beliefs about what is good, desirable, and how things ought to be.

Economic Justice

Fair allocation of resources, but raises concerns about economic freedom and the potential for redistribution to reduce personal wealth.

Prejudice

A preconceived opinion or feeling, often negative, that is formed without sufficient reason or knowledge.
It is learned through social interactions and often becomes part of an individual's value system.

Stereotypes

Generalized beliefs about members of a particular group, often based on limited or inaccurate information.
Can lead to prejudice and discrimination.

Discrimination

The action or behavior that maintains and supports prejudice.
Can involve unequal treatment, denial of opportunities, or exclusion from societal benefits based on factors like race, gender, religion, or sexual orientation.

Institutional Discrimination

Discrimination that is embedded within societal structures, policies, and practices.
Often reflects and reinforces existing prejudices, resulting in systematic disadvantage for certain groups.

Assimilation

The process of blending into a dominant culture, often by adopting its language, customs, and values.

Cultural Pluralism

The coexistence of diverse ethnic groups with mutual respect for each other's cultural differences.

Ethnocentrism

The belief that one's own ethnic group or culture is inherently superior to others.
Can lead to prejudice and conflict.

Poverty Threshold

A measure of income that determines whether a family or individual is considered below the poverty line.
This threshold is calculated based on factors like family size and the cost of living.

Gig Economy

A labor market where independent contractors and freelancers take temporary jobs in flexible arrangements.

Flexicurity

A model that combines flexible labor markets with strong social safety nets.
Aimed to create more flexible employment arrangements while providing workers with economic security and protection against unemployment.

Unemployment

The state of being out of work and actively seeking employment.

Underemployment

Working in a job that is below one's skills or qualifications or working fewer hours than desired.

Frictional Unemployment

Temporary unemployment that occurs because of normal job transitions in a dynamic economy.

Structural Unemployment

Longer-term unemployment that results from structural changes in the economy, such as technological advancements or shifts in industry.

Cyclical Unemployment

Unemployment that occurs during economic downturns or recessions.

Chronic Unemployment

Persistent difficulty finding work, often due to factors such as lack of education or skills, discrimination, or geographic isolation.

Dual Labor Markets

A theoretical model of labor markets suggesting that workers are divided into two distinct segments: a primary labor market with higher wages and benefits, and a secondary labor market with lower wages and fewer benefits.
This model emphasizes the influence of unions in shaping the primary labor market.

Wages

The amount of money an employee earns in a given period, typically per hour.

Living Wage Movement

A movement that advocates for a minimum wage that is high enough to meet basic needs such as housing, food, and transportation.

Asset-Based Policy

A strategy that focuses on helping individuals and communities accumulate assets, such as savings accounts, homeownership, or education, to improve financial stability and increase wealth.

Individual Development Accounts (IDAs)

Matching savings programs for low-income individuals designed to help them build assets by matching their contributions to their savings accounts.
These accounts can be used for purposes like homeownership, education, or starting a business.

Americas Fringe Economy

A term often used to describe predatory lenders and service providers that target financially vulnerable populations.
These businesses often charge high interest rates and fees, exacerbating financial hardship for the communities they serve.

Pro-Growth Model

An economic development model that emphasizes economic growth as the primary driver of poverty reduction.
Focuses on expanding the economy through investment, trade, and innovation.

Pro-Poor Model

An economic development model that prioritizes reducing poverty and inequality.
Focuses on targeted programs, social safety nets, and income redistribution to address the needs of the poorest members of society.

Non-Governmental Organizations (NGOs)

Nonprofit organizations that operate independently of government control.
Often play a crucial role in providing aid, development, and advocacy in communities around the world.

Microcredit

The provision of small loans to individuals or small businesses that lack access to traditional banking services.
Aimed to empower low-income individuals and promote economic development.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Explore various economic theories including Keynesian Economics, Modern Conservative Economics, Social Darwinism, and Democratic Socialism. This quiz delves into the principles behind different approaches to government intervention and social assistance. Test your understanding of these economic paradigms and their implications for society.