Chapter 3
Characteristics of Market System Capitalism

I. Characteristics of Capitalism

II. Modern Capitalism

III Other Economic Systems

IV. Country Economic Policies

V. Political Philosophies
1/14/24

VI. Democratic Republic Politics

VII. Visual Informatics

Conclusion

Postscript

Chapter 4 Demand and Supply

Lecture Notes

 I. Basic Characteristics of Capitalism (market economy)

   

         

Political Economy 

A. Business Downturns Continue

1. Post WW2 Competitive Adjustment

2. 7 US Competitive Adjustments

3. Good Jobs Disappeared

4. Middle-Class Plight

Videos
1. Successes/Price of Capitalism

2. Capitalism in Crisis

3. Crisis of Capitalism

4. Seven Bad Ideas

5. Bullish on U.S. Economy

6. Crisis of Capitalism Critique 

7. Unfettered Capitalism

8. The End of Capitalism

9. Private Sector against corruption 

10. Crisis of Capitalism

E. 1. Many buyers and sellers
    2. Market participants, buyers and sellers, have little control over price
    3. Competition performs the organizing and controlling functions for a market economy
    4. Balance Countervailing Forces required to guide capitalism to maximum benefits Limited government ("Laissez-faire
        a) Government should let markets be with a hands-off philosophy
        b) Acceptable government involvement has become an important
            political question in the United States from the revolution.
        c) Francois Quesnay
popularized term laissez faire.
        d) Free Anne Rand Books
  
      e) Some disagree with Anne Rand's ideas on limited government
        f ) 2019 Competitive Index ranked US 12th, but highest large economy
F. Adam Smith on the Morality and Markets

G. Advantages and Disadvantages of Capitalism.
    1. Advantages
        a. Economic freedom helps political freedom
        b. Government ownership often leads to a powerful state and less political freedom.
            1984 audio book Spark Notes video
        c. Maximum economic success requires efficiency
        d. Economic growth required for efficiency
        e. Most successful economic system to data
    2. Disadvantages
        a.  Monopoly power over product and labor markets limits advantages.
        b. Social costs (pollution) and benefits (health care) often ignores.
        c. Inherited Wealth can lead to inequality and social unrest
        d. Diminishing utility from wealth accumulation means society's total is not maximized
        e. Prone to boom and bust cycles causing much hardship

 

II. Modern Capitalism Has New Features
    
 A. Tangible/Intangible Capital Goods and Technology important
       B. Specialization
            1) Complexity limits product lines.
            2) Division of Labor allows specialization by ability, training.
     C. Modern Capitalism has many "rent seekers" trying to increasing profit through politics.

1. Corporate Capitalism: marketplace characterized by the dominance of hierarchicalbureaucratic corporations
2.
State Capitalism: is driven by the state, less reliance on markets as practiced in China.  China's State Capitalism
3.
Money Manager Capitalism: managers dominate savings, investing and markets.
4.
Crony Capitalism or Corporate Welfare has been around from the beginning.
5.
Neoliberal Capitalism began with the Reagan era of deregulation.

D. Capitalism and Business
1.
Reimagining Capitalism: Documentary of the Week
2.
Chinese Capitalism Better than American Capitalism
3.
Hoodwinked

     An Economic Hit Man Reveals...

4.
How Will Capitalism End
5.
Has Capitalism Reform Reached a Turning Point Forbes
6. 
Revisiting Old Argument About Impact Capitalism
7.
Economic Report of the President 2014 is positive
8.
The Great Recession
   
looks at a recent capitalistic failures.
9.
Chicken Shit Club:
     Why Justice Department Fails to Prosecute Executives

 

III. Other Economic Systems
     A. Introduction
         1. Pure capitalism of Adam Smith never existed.
         2. Recent economic systems are Mixed Economies
             (a mixture of Capitalism and Socialism) See
             Democratic Capitalism vs. Capitalistic Democracy
         
3. Quick History of Economics
video 10 min.
    B. Mercantilism
        1. 
Mercantilism
        2. Mercantilism explained
3 min video
        
3. Mercantilism 5 min video
     C.
Socialism has collective ownership and
          management of economic resources that
          are more equally distributed.
          1. See
A Concise History of Socialism
          Socialism-What You Should Know About
          2. Democratic Socialism as practiced in Western
              Europe has public ownership of key industries such
              as transportation and communication.
              a. Economic systems of Europe began moving away
                  from socialism toward capitalism in the late 1970's.
              b. Margaret Thatcher former prime minister of England 
                  started this trend.
              c. Ronald Reagan agreed and stressed the market
                 system during his presidency. 
              d. Social Market Economy is a social and economic
                  system combining free market capitalism which
                  supports private enterprise, alongside social policies
                  which establish both fair competition within the
                  market and a welfare state and strong anti-inflation
                  controls
             e. Democratic Socialism in America is a negative view
             f.  Fabian Economics "came from a British socialist
                
organization whose purpose was to advance 
                 socialism as gradualist, reformist rather than
                 revolution.           
           3. Capitalism and Socialism
               a. Capitalism and socialism a 14 min video from
                
   Crash Course Video in World History
                  
#33 uses humor teaching the basics.
               b. Laissez fair Capitalism vs. Socialism Video
                  
See Social Democracy
               c. What is China's State Capitalism?
                   Question: Will China's system morph into
                   Democratic Socialism?
        
     d. Marxism 101 How Capitalism is Killing Self video

     D. Communism is command driven practicing Marxian.
         
1. 19th century philosopher
Karl Marx created the political system.
               a. Marx extensively criticized Capitalism
               b. Mark described a Utopian worker's world.
               c. He was not concerned with getting from a to b.
          2. Wealth is collectively owned and managed in this
              planned
command economy.
         
3. The  Paris Commune of 1871 along with the French 
              Revolution explains why so many feared change
              promised by new liberal economic systems.
          4. Some equate communism with a totalitarian political 
              system democratic communism has never existed.
          5. This very left pro-labor anti religious economic
               philosophy was despised by most Western Oligarchs
               many of whom Nazi Fascism over any brand of
               Communism. 

          
6. How Marx Got On The Wrong Side Of History
         
7. In 1917 Bolsheviks who wanted immediate revolution
              defeated the evolutionary oriented
Mensheviks

     E. Corporate Fascism
         1. Similar to
Plutocracy-rule by wealthy 
         2. Plutocrats vs. populist is a controversial topic. 
         3. American Dynasty summarizes Bush family plutocracy 

     F. Less Dominate Systems
        1. 
Feudalism structures society around relationships the
            holding of land in exchange for service or labor
            a.
New Feudalism refers to a theorized contemporary
                rebirth of policies of
governance, economy and 
                public life reminiscent of a
U.S. ?

            b. Feudalism Then and Now
        2. Traditional economy is directed by custom. 
        
        3. Kleptocracy government exists to increase the
            personal wealth and political power of officials Russia? US?
           
Antitrust and How Kleptocracy Corrupts What Markets Are Supposed to do Well 24
        4. Theocracy deity is officially recognized as the civil ruler
            and official policy is governed by officials regarded as
            divinely guided  see
 Vatican City  Iran and Sikyong

     G See The History of Economic Thought  1 hr 37 Min

 

Ronald Reagan and Margaret Thatcher at the White House,
16 November 1988 
Click to enlarge.

Editors Note: Most unbiased observers would feel uncomfortable calling U.S. Democratic social radical. Followed by many of the great countries of Europe after WWII, it did very well but some would feel it drifted toward communism. by trying to redistribute too much wealth from the top toward the bottom. Prime Minister Margaret Thatcher pushed Great Briton toward capitalism by selling many large state owned industries and instituted  business deregulation. Ronald Reagan followed suit in the U.S. though he concentrated on deregulation. Some 30 years later Thatcher's Great Brittan has fared better than more socialistic continental European where politicians have allowed government spending and borrowing to get out of control. Conservatives in America feel they must stop U.S. politicians from doing the same thing.

 

 

 

IV. Country Economic Policy
         A. Colonialism where one nation assumes political or economic control
          over another nation is imperialistic.
The practice has occurred throughout
          history and has been compatible with all economic and political systems.
          1
. Economics of Colonialism

          2
. Settler Colonialism

Colonialism Maps


          

            3. Greece, Endgame of Neocolonial Exploitation
            
4. Teaching Decolonization Resource Collection

    B. Federalism divides powers between member units so that political order
       
 is constitutionally decentralized between at least two units. Each level has
         some final authority and has some areas of self government.
         a.
Federalism in the United States protects states rights with a concept
            
of
Dual Federalism but hardships caused by the Great Depression led
             some toward the concept of
Cooperative Federalism
         b. A conservative look at
Federalism
         
c. The political Revolution of 1800 entailed Jefferson's Republicans
             taking over for the Federalist Washington, Hamilton and Adams. It
             began a 200 plus year battle concerning Federal Government power.  
         d.
Incorporation of the Bill of Rights enhanced the movement away form Federalism
             
1. "Originally the Bill of Rights only protected the rights it enumerated from federal
                  infringement, allowing states and local governments to abridge them.
             2. In 1868 the
Fourteenth Amendment began the process of
                 supplying all right to all people. Citizenship for blacks was first.
     
            the Supreme Court in held that the First and Second Amendments 
                 did not apply to state governments. See
United States v. Cruikshank
.
            
3
. In 1897 Supreme Court ruled that federal property rights applied to state and local laws.
                 See
Chicago, Burlington and Quincy Railroad v. City of Chicago
            


            

     C. Readings for Other Economic Systems
          1.
Two Cows explore using resources. Infographic 3/1/13

          2. Economic system has concise definitions.

          3. Is Marxism Relevant Today? takes a while to load.

          4. Presidential Courage explores how Ronald
              Reagan deplored Communism.

          5. Questions Economic Systems Must Answer

          6. Book Collections
          
  a)
Classics of Political Economy
            
b)
Classic Books of Political and Military Science

See Current Political Economy Controversies

 

 

 

 

 

444

 

V. Political Philosophies
      Politics is about power and control. See A New History of Power 20:16
      
Systems consists of a government and politics.

    Commonwealth is a political community founded for the common good.

    Democracy. liberal exists when government power resides in a constitutionally determined electorate
     each with an equal say in determining majority will. Political decisions are such that majority's
     power is absolute and unlimited The most difficult issue concerning the success of a democracy
     concerns controlling the possibility of Majority Tyranny
coming from Majority Factions as explored
     in
The Federalist Papers
.
   
 a. Controlling majority factions is more difficult in times of war when freedom of speech is questioned
         to maximize the state's police powers.
     b.
Gilbert v. Minnesota (1920) dealt with a state law prohibiting interference with the military's
         enlistment efforts. It was the beginning of a movement away from property rights and toward
         the liberty rights of
individual.
     c.
Whitney v. California 
(1927) dealt with the prosecution of a woman or aiding the Communist
         Labor Party. It also
furthered the individual liberty movement.
  
 d. Beginning in the 1950's the movement toward individual liberty morphed into the    
        Civil Rights
movements.

    Oligarchy: power effectively rests with a small number of people.
    a. US is an Oligarchy Northwestern study concludes
    b. German Oligarchs financed Hitler.
    c. Is America an Oligarchy
    d. The Power Elite: first full-scale study of structure and distribution of power in USA
    e. What the 1% DonWW't Want You to Know
       
1. 24 min video Paower
        2. Patrimonial Capitalism leads to Oligarchy Capitalism

        3. Polyarchy has decentralized rule where many smaller governments
            tailored to the needs and desires of the local populations.
        4. Fascism a form of is a form of radical authoritarian nationalism is
            considered by some to be right-wing as it is social conservatism
            and uses authoritarian means to oppose egalitarianism.
        5. Totalitarianism
: the state holds total authority over society and seeks to control
            all aspects of public and private life.
        6. Libertarianism  wants to limit power.
            See Liberalism, Constitutionalism and Democracy
        7. Dictatorship rules by a few or one person. Germany had Hitler as dictator, he
            controlled a few advisors and a strongly nationalistic totalitarian state resulted.
        8. Populism is not mob rule-Thomas-Frank podcast from the Analysis.news

    Republic government exists when a constitutionally determined representative
    government of elected leaders operating according to laws to protect individual
    rights which include equality, liberty, property and  necessity of consent.
    a. There are many application of Republican concepts. What constitutes a
        right and their relative importance of rights has been continually debated
    b. John Adams "a government, in which all men, rich and poor,
        magistrates and subjects, officers and people, masters and servants,
        the first citizen and the last, are equally subject to the laws."
    c. In United States v. Cruikshank (1875) the Supreme Court ruled that
        "equal citizens" was inherent to the republic ideal.
    d. Colonial America developed in an untamed wilderness far from the
        mother country. This was a  unique historical circumstance resulted
        in the concept of American Exceptionalism

 

  C. Kinds of Democracy

     1. Presidential Democracy Are we a Democracy? A Republic? A Polyarchy?
         In this 7.04 video Noam Chomsky breaks down his view of
         politics today and the politics that our founders envisioned.
         See
Current Political Economy Controversies
     2
. Parliamentary Democracy as practiced in Great Brittan has an
         executive  branch that derives its legitimacy from and is held 
         accountable to a
legislature (parliament
). The executive and
        
legislative branches are thus interconnected. 
         a.
Head of state is normally a different person from the
             
head of government. Called a prime minister, they are
             appointed from the majority party or from a coalition of parties
             when no one party have varying digress political responsibility
         b. England's Queen has only ceremonial responsibilities.
    3.
Democratic Republic vs. Parliamentary Democracy
by
        President Wilson's His comparison would make many
        founding fathers unhappy as they feared budget instability
      
 and anarchy similar to that of the French Revolution.

 

 

D. Making Laws in a Democracy
   1.
Direct Democracy also known as pure democracy has the
       on policy initiatives.
  
2.
Indirect democracy or representative democracy is when the
          electorate chooses officials to make laws on their behalf.
   3.
Initiatives and Referendums exist in some U.S. States.
         a. Part of the early 20th century
Progressive Movement
         b. Allowed voters to put a proposed law on the ballot for
            approval and also to void existing state law. 
        c. D.C. and 27 states have this direct democracy tool.
        d.
Referendumania Direct democracy is spreading
            across Europe, not always a good thing. 5/21/16
        e.
Brexit was Democracy in its Purest Form 7/16
   4.
Constitutional Amendments expanded "We" of
       "We the people..." which moved U.S toward Republicanism.
       a. The 1911
17th Amendment changed the election of U.S.
           Senators from the House of Representatives to voters.
       b. The 1919
19th Amendment gave women voting rights.
       c. The 1971
26th Amendment lowered voting age to 18.
       d. Eliminating the Electoral College would move the process
           closer to the people, Republicanism and a direct democracy
           majority. See
Athens-The Truth About Democracy video
    5.
The War On Democracy Video
    6.
Republican Principles developed during Jefferson's presidency.
    7.
US Voting Rights Timeline
    8.
Walt Whitman shows the spirit and his energy sort of
       define America “
Democratic Vistas.

E. Republic vs. Democracy
     1. In a republic the sovereign is the individual, it is government of the people.
         In a democracy, the sovereign is the group, the majority, it is government
         by the people.
         a. Liberal Democracy try to maximizes the represented cohorts
ex. U.S.
         b. Illiberal Democracy limit cohorts
ex. China is modified Marxism
     2.
Republic v. Democracy and other governments
     3.
An Important Distinction: Democracy v Republic
     4.
Republic v Democracy
     5.
Why faster growth with a democratic presidents-timing is everything.
     6. 
Building a Democratic Republic
     7.
Book Summaries Internet Library's reviews Meacham's biography of
        Jefferson and other political economy writings.

 F. Democracy and Capitalism
    
1. Capitalism is in Constant Conflict with Democracy 8/8/20
    2.
Pyramid Theory looks at Capitalism as Practiced in the US Democracy.
    3.
Alexis de Tocqueville wrote about capitalism and democracy
         in 19thnd democracy America. Read
Democracy in America
    4.
Trading Democracy for Corporate Rule Part 1
         video from Documentary Films
    5.
Capitalism Will Eat Democracy
    6.
Democracy Is a Threat to Any Power System- Noam Chomsky
 84 Min Video
   7.
Democracy is an Insurance Policy for the Rich, they aren't paying
         for the policy.
12 min

G. Is democracy, like communism, a failed doctrine? Videos
    1. Terminal Democracy Documentary Film
    2.
After Democracy Documentary Film
    3.
Legalize Democracy Documentary Film

H. Tenth Amendment to the United States Constitution
   is part of the
Bill of Rights as ratified on December 15, 1791.
   1. The Tenth Amendment states the Constitution's principle of
       
federalism by providing that powers not granted to the
       
federal government nor prohibited to the States by the
        Constitution are reserved to the states or the people.
   2. This requires
judicial interpretation.
   3
. Tyranny of the Status Quo - Part 1 - Beneficiaries

Unit VI. Review Commonwealth, Republic, Democracy, Federalism, Polyarchy,
Fascism, Totalitarianism, Libertarianism

 

Return to Last Chapter     Discussion Questions     Homework Questions      

Next Chapter Demand and Supply     Table of Contents       Economics Internet Library

 

 

Source 

 

 

The US constitution was seen as very important because republican government had not succeeded very often due to an inability to limit majority power. It was written at a time when the science of politics developed by John Lock and others would help develop a document that would promote stability and control majority factions. Controls included  Separation of powers/ authority among three branches of government, the legislature, the President, and the courts. Within the legislature power was again separated such that the Senate could stop a bill passed by the House of Representatives, the President could veto a passed Congressional bill, Congress could override said veto with a 2/3 vote, and the Supreme Court could stop the President and Congress by declaring a law unconstitutional. These checks and balances between the branches were to protect minority rights from factions.

Politically, the U.S. had a difficult beginning as the violence and anarchy surrounding the French Revolution made many Americans uneasy about their republican democracy. Historically, the Federalist and their active state liberalism ruled and then Jefferson and Jackson governed based on minimal state liberalism.  Then Lincoln used a strong federal government to preserve the Union and it lasted until the end of reconstruction when limited government helped by the Supreme Court fostered the Gilded Age. The Progressivism Teddy Roosevelt and Windrow Wilson ruled with active state liberalism until the First Red Scare and unionism following WW I brought back minimal state liberalism. The Great recession allowed FDR to use active state liberalism to tame the Great Recession and while active government was slowed by a Second Red Scare and the Korean War, the Kennedy assassination  in 1962's gave LBJ's the ability to use active state liberalism to pass The Great Society anti-poverty programs. A difficult 1970's because of Stagflation allowed Ronald Regan to blame big government and he returned to minimal state liberalism. Neither branch of state liberalism has controlled the 21st Century with society allowing a strong governmental response to 9/11 and then allow President Obama, a strong active state liberalism president, to pass Obamacare.

Federalist George Cabot of Massachusetts feared ..."the terrible evils of democracy," and felt Jefferson was unstoppable,..." From p368 of Thomas Jefferson: The Art of Power, 2012 a biography by Jon Meacham as summarized by Walter Antoniotti Democracy and a Republics are often interchangeably. Source

 

 

Philosophy
1. Why Intellectuals Hate Capitalism by Robert Nozick

2. Is Capitalism Moral? A Commonwealth Club Podcast\
3. Coercive power of capitalism
4. Capitalism and Inequality (Jerry Z. Miller, Foreign Affairs)  
          Without social safety nets capitalism is doomed through 
          social disorder

5. Capitalism Versus the Philosophers
     
See People Not Voting Their Pocketbook is Killing the Poor

 

 

Does Current Political Economy Questions substantiate that democracy has not controlled government spending.

Editor's Note: Building a Democratic Republic is an interesting study of the 250 years of trial and tribulations required to build our government. It is from Part 2 of Turning Points in American History covers these topics.
 
 
 
 
H. Building A Democratic Federalist Republic
    1. The Early Colonial Period
    2. Determining Political Power and "We the People"
   
3. Increasing We" of "We the People"
    4. Thomas Jefferson Leader of the Opposition

    5. Constitutional History of a Democratic Federalist Republic
   
6. Capitalistic Democracy
Profitable Government
TTT
 

 

 

[[

 

Political Book Summaries

AND MANY MORE

 

VII. For Visual Learners

Political Book Summaries     American Evolutions   Economic Systems

Cow Based Analogy of Capitalism    Calvin and Hobbes Explain Modern Capitalism

Economic Reasons for Colonialis by 1870s countries developing second industrial revolution facing double problem:

1 need to sell overproduction, new markets

2 need to buy larger amounts of raw materials at cheapest price

Besides: wish to invest surplus of capital in places with cheaper hand labour in order to get larger profits

RESULT:  most developed countries occupied territories esp. in Africa and Asia – areas with weak political and economic structures. This is known as colonialism.

Main countries: Britain, France, Germany,  Belgium, Italy  later also the United States and Japan

SOCIAL

Population excess of industrialised countries: search better living conditions creating  colonies in areas having similar climate, i.e. South Africa, Australia, Algeria.

RESULT:  millions of Europeans emigrated to colonies preventing further social discomfort  to the  metropolis i.e. strikes, stoppage or workers rioting

POLITICAL the “national pride”  forcing to increase the number of colonies

MILITARY  need to occupy  ports,  build strategic canals to guard commercial routes in competition with nations aiming the same

JUSTIFICATION FOR COLONIALISM

Some countries mentioned moral or ethical reasoning: Europe’s civilising mission: due to technological supremacy + religious = sanitary, educational, improving lifestyles, social peace,… 

Joseph Rudyard Kipling (December 30, 1865January 18, 1936) was an English author and poet, born in Bombay, British India, and best known for his works The Jungle Book (1894), The Second Jungle Book (1895

However, later in life Kipling also came to be seen (in George Orwell's words) as a "prophet of British imperialism." Many saw prejudice and militarism in his works

(The heavy responsibility of the white man)

"The White Man's Burden" is a poem by the English poet Rudyard Kipling. I

http://en.wikipedia.org/wiki/The_White_Mans_Burden

RESULT: ideas lead to racism: white man superior to other races

JUST only a few intellectuals and socialist leaders opposed colonialism charging brutal and inhuman exploitation in colonies.

www.historiasiglo20.org

 

Readings

The Economist

"The East India Company foreshadowed the modern world in all sorts of striking ways. It was one of the first companies to offer limited liability to its shareholders. It laid the foundations of the British empire. It spawned Company Man. And—particularly relevant at the moment—it was the first state-backed company to make its mark on the world.

State-controlled companies account for 80% of the market capitalization of the Chinese stock market, more than 60% of Russia's, and 35% of Brazil's."

 

 

 

 

 

 

 

 

 

 

 

 

 

British-raj-Atrocity Exposed

In the early 19th century, the East India Company (EPIC) , had cut off the hands of hundreds of weavers in Bengal in order to destroy the indigenous weaving industry in favor of British textile imports (some anecdotal accounts say the thumbs of the weavers of Dacca were removed).

The violent deaths inflicted by the British are overshadowed by the excess deaths due to deprivation - the British managed to hold onto India by keeping most of the population (except for public servants, Princes and sepoys or Indian soldiers) in dire poverty on the verge of starvation. 

Torture By French During Algerian War of Independence

Political Book Summaries

-
How Democracies Die
 
4p, 4 videos
Presidential Courage 
8p
 

American Nations 
2p

 

Don't Know Much About History
 
10p   
Turning Points in American History 
10p

 

How Democracies Die Audiobook By Steven Levitsky, Daniel Ziblatt cover art

 

 

Economic System Alternatives

 

Here is a visual version of the well-known cow based analogy of capitalism.

Daily Global  Economic Intersection Newsletter

 

 

 


Calvin and Hobbes Explain Modern Capitalism 
from The Daily Beas

 

 

US Produces Most Per Capita

Voters Hire Politicians That Overspend and
 Promise More in the Future at all levels of Government

Cheap Imports Allow Even More Consumption.

We Borrow on Home Equity for Current Consumption.

Yet Many Seem Dissatisfied?

 

   

 

 

Market System Capitalism and Political Economy Videos

 

 

 

 

 

 

hh


   
 A. How is the concept of creative destruction currently affecting the United States economy?
      B. Explain how the concept of creative destruction has affected European politics: 
          a. in the recent past 
          b. in the near future
      C. Read the John Adams section of Presidential Courage for the economic political issues
          faced by President Adams at the turn of the 18th century. Are they similar to those faced by
           the U.S. early in the 21st Century. Cam these questions can be applied to most of America's
           presidents.
      D. President Obama been accused of being a Socialist? Begin with a nominal definition of
          relevant political and economic terms explored in this chapter and relate them to our current
          economy and politics. How accepted are political and economic concepts? What did
          suffrage have to do with this accusation. 
          See
Presidential Politics: Party Politics and Presidential Elections from 1788 to 2012 and
                
20th Century U.S. Political Economy: An Interaction of Politics and Economics.

       
E. Give examples of current political discussions designed to move the U.S. toward or from a Republic.
      F. Class Project can take a day, week, month, term, lifetime! Something happened during the last 30
          years to disconnected wage growth from productivity growth.

     G. Course project/discussion # 2
          Using concepts explored in this chapter and this course Investigate
          1. Competition
          2. Energy cost
          3. How are capitalism and democracy designed to return a normal growth in wages?
      4. Geekability

      5. Other Stuff ">


              
Answers Class Discussion Questions

Editor's Note: To solve the problem of not enough income for the middle classes in the 1980's capitalism changed the name of Home Improvement Loans to Home Equity Loans.   People were encouraged to immediately spend what had been a retirement nest egg. There is nothing wrong with this as long as people realize that they may be delaying retirement.

Please   

More Chapter Stuff

Chapter Videos on One Page

Economic Normality Changed Seven Times 1945-2015
Rising Income
Increased Foreign Competition Began 1970's Wage Stagnation
1980's Bring Less Financial Regulation, Slow Wage Growth
U.S. Financial Bailouts and Economic Recovery
Poverty Stuck at 15% Since 1984
Profit Growth Beats Wage Growth in New Century
Wellbeing Continuing Growing

Building America's Democratic Federalist Republic
1. The Early Colonial Period
2. Determining Political Power and "We the People"
3. Increasing We" of "We the People"
4. Thomas Jefferson Leader of the Opposition
5. Constitutional History of Our
Democratic Federalist Republic
6. Capitalistic Democracy Profitable Government

Political Economy
U.S. Government and Politics
U.S. Political Economy
 Economic Issues    one-page
US Political Economy one page


Updated 12/14/16  
 

2015 Political Economy Controversies
cover poverty, middle class income and politics in 2015
 

 

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Populism is the Rise

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Students Personal Finance

See Research Paper for assistance

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