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Person who speaks french
an ideology that says government should represent the legacy of the past as well as the well-being of the present, and that society should be structured in a hierarchical fashion, that government should be humanitarian, and the stability of society is all important.
people invest their personal resources in businesses. Profit and private property are the rewards of capitalism
is a non-governmental organisation focused on human rights with over 3 million members and supporters around the world.
important figure in Liberal political philosophy. He was an influential contributor to social theory, political theory and political economy.
John Stuart Mill
stresses sustainable economics, and environmentalism
the theory that certain knowledge is impossible
the social group between the upper and working classes, including professional and business workers and their families.
the theory that individuals, groups, and peoples are subject to the same Darwinian laws of natural selection as plants and animals used to justify political conservatism, imperialism, and racism and to discourage intervention and reform.
refers to organizations that operate independently from any form of government and are not conventional for-profit businesses
Non-governmental Organizations (NGO)
Total market value of all goods and services produced in a country (3%-5% growth is normal)
Gross Domestic Product (GDP)
- -individual rights and freedoms
- -economic freedom, private property, free markets
- -civil liberties
- -constitutional limitations on government
- -Self regulating
- -free market
- -supply and demand
- -invisible hand
- -self interest
- -universal suffrage
- -pay for MPs
- -secret ballot
- -annual elections
The government of Canada recognizes the cultural and racial diversity of Canada and the freedom of all to preserve, enhance and share their cultural heritage
Multiculturalism Act of 1985
Economic laws such as minimum wage as well as other labor, Education system, legal system, health system, etc.
Created Canada's first universal health-care program and first publicly own automobile insurance program
tommy Douglas (1904-1986)
Advocates moderate political and social reform through government and supports social justice and the rights of workers
economic freedom, laissez faire
cooperation as an unintended consequence of the invisible hand without any deliberate design. People deal with each other voluntarily cause they believe that he or she will be better off. One party to a deal can only benefit if the other party also benefits
Free Market/ Private Market/ Market Economy
self interest is the incentive that drives both individuals in private life and individuals in government
based on spending on consumer confidence. output (GDP)
Business Cycle (Boom and Bust)
longer or deeper or both of a recession
Counter Cyclical Policies
- 1. Fiscal Policy - Governments use of spending and taxing. To stimulate a sluggish economy the government will run a deficit by spending money on public works like roads and bridges. A budget surplus is used to slow an economy that is growing too quickly.
- 2. Monetary Policy- Government regulation of the supply of money to influence the economy.
- To stimulate a sluggish economy the Bank of Canada lowers interest rates to convince people and companies to burrow and spend and raise interest rates to reduce borrowing and slow down economic growth.
kingdoms had begun to evolve in recognizable nations ( Britain, France, Spain). None of these were nation-states. People were subjects of their kings not citizens of a nation.
Europe in 1789
France was the most powerful country in Europe ruled by the Bourbon family. Louis XIV (1643-1715) was called the "Sun King" and his motto was "Nec Pluribus Impur" - none his equal He is famous for saying "L'etat c'est moi" or I am the state
The Rise of Absolutism
Absolute Monarch controlled their countries' economies. They believed that a country's economic strength was based on its supply of gold ans silver. The government controlled wages, prices and the quality of goods. Exports were emphasized and imports were limited. the government used protective tariffs to protect national industries. Skilled workers were not allowed emigrate. Monopolies were granted to create overseas colonies to gain access to raw materials and new markets.
spiritual leader and the gatekeeper of heaven providing education, and welfare. They collected taxes and made law but demanded loyalty.
Roman Catholic Church
Humans became skeptical and questioned the feudal order and the catholic church. An urban, secular society developed that focused on trade and money
Renaissance (rebirth) 1400-1600
A split between the catholic church and protesters who its authority. Individual faith was placed above obedience to any leader (individualism)
Freedom of religion, speech, association, right to vote, to life, liberty and the security of the person.
Individual Rights and Freedoms
the freedom to buy what an individual wants and sell their labor, idea, or product to whomever they wish.
The economy is capitalist, but the government uses policies that directly or indirectly modify the market forces in order to ensure economic stability and a basic standard of living for its citizens
Unemployment insurance, Canada Pension Plan, Canada Health Act, Welfare, etc....
Canada's Social Safety Net
-wealthy should pay higher taxes
-guaranteed annual income
-means of production publicly owned
- no private property
Collectivist Ideologies (Communism and Socialism)
voluntary and open membership, democratic control by members and economic participation by members
only workers should profit from their labour, not employees or owners of the company Marx called for the abolition of private property
Totalitarian gov'ts control their group. If one member of a group criticizes the gov't the whole can be punished.
groups impose norms, or standards on their members
an ideology that people should have the maximum possible freedom. Gov't should not interfere with people's lives or their business activity
the amounts of a good or sevice
how much people wanted a good or service
wrote "the wealth of Nations" defining Capitalism. He thought that a nation's wealth was in goods it produced not just gold, silver and agriculture. Productivity depended upon how well it combined land, labor and capital
Smith believed gov't control limited economic growth. The economy should be left to function according to the actions of individuals. Self-interest would lead business firms to produce only those products that consumers wanted at the lowest possible cost. The "invisible hand" was Smith's name for the economic forces that we call Supply and Demand or the firm market.
Adam Smith (1723-1790)
Roles of government in a capitalist system
- provide for the national defense
- protect competition and private property
- enforce the law
Capitalist view of poverty (social darwinism)
Capitalist competition allowed the strongest to succeed. Poor people were weak or lazy. Poverty was an incentive to work harder.
iron law of wages
- Malthusian checks on the population
- Disease, famine, war, poverty are natural
Consumer sovereignty (dollar voting)
Consumer demand for a food determines what is produced. Producers use advertising to attract consumer demand and override consumer sovereignty
in capitalism is based on ability, training and experience of a person and on the demand for those capabilities
a single business that controls production of a good or service and sets prices higher than they should be (Price Fixing, Gouging)
A group of businesses that collude to control the supply of a good or service artificially raise prices
major characteristics of the private enterprise system
- private property
- freedoms to buy and sell
- profit motive
- little gov't intervention
- inequality of wealth
- decentralized decision making
pros of Capitalism
- economic freedom
- limited gov't intervention
- competition encourages law prices good equality
- maximum personal choice
Cons of Capitalism
- prone to booms and busts
- may harm the environment
- high levels of poverty
- companies try to eliminate competition
Centrally planned Systems
The gov't owns, plans and controls the economy. Also known as public enterprise, command economy, or communism.
A german economist and radical thinker. He collaborated with Fredrich Engels to write Communist Manfisto in 1848 and Das Kaital in 1880. His ideas are generally referred to as Marxism or communism
the urban wealthy and middle class owners of the means of production
the working class people who sold their labour
Marx believed the haves exploited the have nots by selling goods that they made for a profit. (surplus value) He condemned the profit motive and private property as sources of class conflict. Marx believed that capitalism had to be destroyed in a revolution in order to create a new society (Classless society)
In the Dialectic method opposing forces compete until one is overthrown and a higher synthesis reached. Marx believed that economic classes were the opposing forces.
Marx believed that history provided inevitable stages of struggle. These stages include slavery, feudalism, capitalism, and finally a socialism utopia.
Dictatorship of the Proletariat
The workers would seize control of the means of production. Capitalism would be destroyed and a socialist society created.
Withering Away of the State
After Capitalism ended the state would disappear. Crime and poverty would end. All base needs like food, shelter, and psychological security met.
Central Planning Board
answers the three basic economic questions for all of society
Advantages of Central Planning
- Planning encourages high rates of economic growth
- Planning helps reduce waste resources
- planned economies do not suffer from economic cycles
- prices are stable
- all people have an acceptable quality of life
- distribution of income is more equal
Disadvantages of Economic Planning
- Little incentive for efficient management
- system stifles individual effort
- freedom of choice is restricted
- black markets
- consumer sovereignty is overlooked
- bureaucratic and inflexible
A protest of the early 1800s against industrialization and mechanization that would make hand labor redundant and threaten employment. Protesters broke into factories and destroyed machines. Parliament made this a capital offense.
A working class movement that focused on political and social reform like universal male suffrage, secret ballot, pay for MPs, and annual elections.
An ideology that believe that resources should be controlled by the public for the benefits of everyone in society. Socialist value the shrinking the gap between the rich and the poor through steep progressive taxation and by providing income security for all.
Humanitarians who advocated an end to the appalling conditions of the average worker during the industrial revolution. They peacefully eradicate the worst aspects of capitalism (Evolution not Revolution)
Robert Owen (1771-1858) - Utopian Socialist
A textile mill owner in New Lanark, Scotland. He refuesed to emlpoy children, banned physical punishment, built homes close to the factory, provided a school for the children of his workers, and subsidized staple products in his company store.
Owen was convinced that id he created the right environment he could produce rational, good, and humane people. He spent his life with reform groups including factory reforms, adult suffrage and the development of trades unions.
The British Labor Party
Came from the Utopian Socialist Fabian Society. In canada the CCF was founded to replace the Capitalist system and the exploitation of one class by another.
negotiating as a group, collective bargaining is the key right for unions.
settlement of a dispute between a union and employer by a neutral third party
A management tactic by which workers are kept from their workplace during a labor disruption