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27 Cards in this Set
- Front
- Back
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What is Commanding Heights?
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the "most important" or "strategic elements" of an economy, including primarily those industries which provide goods/services that are essential for other industries to be productive (energy, transportation, etc. Not a cookie factory.)
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What are three broad sources of "mixed economy consensus" after WWII?
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1. WWII devistated Europe, so the gov needed to help. 2. Right before the war, the world experienced the Great Depression. 3. Prestige and Respect for the Soviet System - the Soviet 5 year plans for industry, command and control economy, and claims of full employment seemed to argue that socialism was the answer to controling the economy.
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What is Full Employment?
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a situation in which every person in the labor force who wants to work is able to find a job (employment rate is 0%)
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What are Fabians?
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British socialist who sought to replace the "scramble for private gain" with "collective warfare." Fabians sought to implement a socialism by peaceful means within the existing political system, not by a "revolution."
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What is Beveridge Report?
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set out social programs to "slay the five giants" of: Want, Disease, Ignorance, Squalor, and Idleness (ie unemployment)
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What is welfare state?
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a system in which the gov assumes the responsibility of improving the welfare of its citizens, particularly with regards to health care, education, employment, and social security.
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How did the British Labor gov establish the welfare state after following the beveridge report?
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They provided free medical care, created new pension systems, promoted better education and housing, and seeked "full employment."
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What is Nationalization?
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the acquisition of ownership and control of a privately owned enterprise by the national gov, either with or without compensation to the original owners.
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How much of British's workforce ended up unemployed in nationalized enterprises?
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20%
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What is plantification?
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Efforts by French gov to focus, prioritize, and guide actions of private business. It was the French version of "indicative planning - intended as a middle ground between free markets and socialism.
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What is the Monnet Plan?
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It set targets and priorities for investment, with particular focus on reconstruction of essential industries (electiricity, railways, etc). He created a credible model for the gov and planning in a market economy, creating a consensus for the "mixed economy" in France and Europe.
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What was part of the "Global food crisis"?
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Lack of food in Germany
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Who said that the US giving them corn was chicken feed? What year? Who replaced him?
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January 1948, Johannes Semler (German Director of Economic Administiration) Ludwig Erhard replaced him.
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Who are Ordoliberals?
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their vision for Germany was one of a "German Social market Economy."
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What is the German Social Market Economy?
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a system which relied primarily upon free market institutions, but with a significant "social saftey net" (subsidies and transfer payments to take care of the disadvantaged members in society.)
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What was the work of John Maynard Kenyes called? What year?
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The General Theory of Employment, Interest, and Money. 1936.
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What is macroeconomics?
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the study of the performance of national economonies as a whole and the policies that gov use to try to improve their performance.
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What did Keynes argue?
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That free markets are volatile and supply and demand might not result in "full employment." The solution should be to replace the missing private spending with public / gov spending such as deficit spending as an economic stimulus during downturns and cut back spending and run a surplus during expansion.
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What is low production equalibria?
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Too little spending
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When does the gov have a deficit?
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When spending exceeds revenues.
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When does the gov have a surplus?
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When gov revenues exceed spending.
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What was the primary arguement of the general theory of Keynes?
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Gov should use fiscal policy to stablize the economy instead of resorting to direct control of the economy.
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What is the Treaty of Rome and what year was it?
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1957. It established a "common market" - an unprecedented joining of diverse economies, built upon: the mixed economy consensus, the drive to deal with issues related to the contruction of Germany, and the threat of the soviet bloc.
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What does GATT stand for? What is it? What year?
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General Agreement on Tariffs and Trade. It was devloped in the UN Conference in Cuba 1947. 23 countries agreed. Provided mechanisms for negotiating multilateral reductions in tariffs. Became one of the most important propellants of postwar economic growth and would help create a global economy that transcended national borders.
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What is a tariff?
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A tax placed on goods imported from aborad. Tariffs raise the price of imported goods and therefore discrouage trade.
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What were the periods in France and German called of great economic times after WWII?
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France: Thirty Glorious Years. Germany: Economic Miracle.
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What is corollary?
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Gov should run a surplus during economic expansions.
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