THE EVOLUTION OF MODERN LIBERALISM

SS 30-1Chap 6 Part 1

TOPICS

Robber Barons or Captains of Industry? Progressivism – Roosevelt and Taft Credit Unions “Red Scare” Decades contrasted – 1920’s/ 1930’s

ROBBER BARONS OR CAPTAINS OR INDUSTRY? cold and ruthless unwilling to share greedy in his pursuit

of money caring nothing for

the troubles of their workers

made the most of an opportunity

took risks worked hard achieved success philanthropic

(charitable) acts

TEDDY ROOSEVELT AND PROGRESSIVISM The “square deal” Reforms put in place to prevent monopolies Concerns that large powerful corporations were

taking advantage of common people

WILLIAM TAFT

Roosevelt’s successor and former vice president Continued Roosevelt’s policies Anti-trust act – to prevent monopolies between

competing companies in

an industry ie – competing oil

companies couldn’t

be owned by a parent

company

CREDIT UNIONS

Began as small financial institutes owned by their members

Alternative lending institute to banks First credit union in North America set up in

Quebec C.U.’s became popular with farmers in the

1930’s – “easier” to work with them instead of with the banks

RED SCARE Fear of communism in North America Fear fuelled by the Russian Revolution Conservatism and Classical Liberal Economics

became popular – businesses would find advantage

1920’S Era of optimism Immigrants poured into North America in search of better

lives – more of a sense of equality here that could be achieved through hard work US Presidents Harding and Coolidge – favoured free enterprise, reduced taxes,

“Isolationism” and later

reduced immigration to

preserve “America’s current

ethnic heritage.”

1920’S CONT’D

Consumerism increased – new products, automobiles become popular

American economy grew throughout the 20’s Gap between rich and poor continued to grow More of the pop. Became urban dwellers Women were enfranchised -Canada-1918

-US 1920

1930’S

Stock Market Crash in Oct. 1929 lead to the Grt. Depression

Became a decade of despair – by 1933 – 25% unemployment in the US, 54% income rate as compared to 1929

FDR (Franklin Roosevelt)– elected as US President – instituted the New Deal – based on Keynesian Economics

3 main objectives – relief, recovery and reform Collectivist ideas of the government influencing the

economy ends laissez faire capitalism

How could this photo be considered as ironic??

1930’S CANADA

Depression felt here as well – many Canadians began to support political parties with collectivist policies CCF (Co-operative Commonwealth Federation) – founded in Calgary in

1932-mixed economic policies of public ownership of industries and financial institutions

Canada was slower to act on reforms as compared to the US – a Conservative PM was in power (Bennett)

1935 – Liberals came to power under PM King – gov’t became much more involved in the economy Created public institutions and social programs See p. 211 for details

1930’S OVERSEAS The Grt. Depression impacted the world Known as the “Grt. Slump” in Britain France affected by 1931, but not drastically – they were quite

self-sufficient Huge impact in Germany – Americans had been helping with

Germany’s war debts – money dried up The failed economy and corrupt democratic gov’t (Weimar

Republic) would send Germany towards extremism

(Hitler and Fascism)