Political Economy and Social Reform

Robert Owen

• Believed laissez-faire capitalism harmed people.
• Sought better working conditions.
• Advocated for free education and healthcare.
• Created a cooperative community at New Lanark.
• Modified classical liberalism to benefit all during the Industrial Revolution.

Karl Marx and Marxism

• Marxism is a radical socialist ideology.
• Marx criticized the exploitation of workers.
• Believed a violent revolution was necessary for a classless society.
• Argued for worker control of the economy and abolition of private property.

Command Economy

• Government controls production and pricing.
• Contrast to free-market economies, where supply and demand dictate.
• Examples include Cuba, former USSR, and North Korea.

Welfare Capitalism

• Capitalists responded to socialist critiques.
• Combined classical liberalism with government protection of workers.
• Introduced regulations like working hours and minimum wages.
• Provided social safety nets (e.g., pensions).
• Aimed to prevent unionization.
• Laid the foundation for the modern welfare state.

Treaty of Detroit (1950)

• Five-year agreement between auto workers and companies (Ford, Chrysler, GM).
• Avoided strikes in exchange for: healthcare, unemployment insurance, pensions, vacation time, and cost-of-living adjustments.

Mixed Economy

• Combines elements of command and free-market economies.
• Includes Crown Corporations alongside private businesses.
• British economist John Stuart Mill proposed it.
• Believed government should address inequalities alongside productive capitalism.
• Often features social safety nets and wealth redistribution.

Modern Liberal Economics

• The Great Depression shifted focus from welfare capitalism to the welfare state.
• Classical liberalism questioned after business and bank failures.
• Marked a shift towards modern liberalism.

Business Cycle

• Natural fluctuations in economic activity.
• Alternating periods of growth (expansion/boom) and decline (recession/bust).

Keynesian Economics

• Developed by John Maynard Keynes during the Great Depression.
• Advocates government intervention during economic downturns.
• Government lowers interest rates, reduces taxes, and increases spending to combat recessions.
• To control inflation, the government raises interest rates, increases taxes, and reduces spending.

The Great Depression

• Severe economic downturn in the 1930s.
• Began with the 1929 stock market crash.
• Widespread unemployment, reduced consumer spending.
• Lasted until WWII.

Herbert Hoover

• U.S. President (1929-1933).
• Adhered to laissez-faire economics, worsening the Great Depression.
• Avoided government intervention.

Hoovervilles

• Shanty towns built by homeless people during the Great Depression.
• Due to widespread unemployment.

Richard Bennett

• Prime Minister of Canada (1930-1935).
• Criticized for maintaining laissez-faire policies.
• Led to economic hardship during the Depression.

New Deal

• U.S. President Franklin D. Roosevelt's response to the Depression.
• Introduced government intervention to boost the economy.
• Programs focused on Relief, Recovery, and Reform.
• Included public works, job creation, and banking reforms.

Quebec's Welfare State

• Developed public works and a welfare state after WWII.
• Ensured access to healthcare and education.
• Continued during the Quiet Revolution (1960s), focusing on social reforms.

Crown Corporations

• Government-owned businesses that provide services or jobs.
• Created when private companies might not.
• Privatization is the selling of Crown Corporation

Subsidies

• Government funding for struggling businesses.
• Maintains operation, employment, and competition.
• Opposed by classical liberals (e.g., Adam Smith).

Canadian Social Welfare System

• Government-funded social safety net programs.
• Includes the CPP, Employment Insurance, healthcare, and child tax credits.

Government Revenue

• Money collected by the government through progressive income taxes.
• Funds programs and services.

Universal Health Care

• Healthcare access regardless of wealth.
• Funded by government revenue.
• Canada's largest social safety net.

Transfer Payments and Equalization Grants

• Money transferred from wealthier provinces to less wealthy ones.
• Aims to reduce regional disparities.

Fiscal Policy

• Government's use of its budget (taxes and spending) to stabilize the economy.

Monetary Policies

• Government control over interest rates.
• Influence spending and demand, based on Keynesian economics.

Quantitative Easing

• Central bank printing money to buy financial assets.
• Aims to boost the economy.
• Can benefit the wealthy while devaluing savings.

Guarantee of Rights and Freedoms

• Citizens' rights protected by constitutions (e.g., U.S. Bill of Rights, Canada's Charter of Rights and Freedoms).

Centrists

• Favour balanced government control and personal freedoms.
• Often oppose political extremes.
• Consider both sides of an issue.

Explore the key ideas of Robert Owen, Karl Marx, and the concepts of command economy and welfare capitalism. This quiz delves into the impact of these thinkers on industrial society and the evolution of economic systems. Test your knowledge on their philosophies and the responses to social challenges.