Commanding Heights: The Battle Between Government and Markets in the Twentieth Century, Quizzes of Local Government Studies

Download Commanding Heights: The Battle Between Government and Markets in the Twentieth Century and more Quizzes Local Government Studies in PDF only on Docsity! TERM 1 Why is the rate of population growth decreasing? DEFINITION 1 Aging of population TERM 2 Household income has been _________. DEFINITION 2 Increasing TERM 3 Differences in family income by ethnicity DEFINITION 3 Asian Americans have highest, followed by whites, followed by blacks/hispanics TERM 4 Taxes DEFINITION 4 Revenue received by government TERM 5 Three Major Issues of Taxes DEFINITION 5 -Tax Burden: Total level at which we are taxed relative to GDP -Tax Base: What we do/don't tax -Tax Structure: How do we treat it at different levels TERM 6 John Maynard Keynes (Commanding Heights) DEFINITION 6 -Market economy would go to excesses so government had to step in -Academic at Cambridge -Lost large fortune in stock market, then gained it back -Handled German economics during war; resigned -Aimed to rewrite rules of economics -Macroeconomics -JFK's speech at Yale about economic policy suggested that Keynesians had won over Kennedy TERM 7 Friedrich von Hayek (Commanding Heights) DEFINITION 7 -Opposed Keynes -Enrolled in University of Vienna where he joined a group wanting to be free from government -Saw inflation as an evil -Too much gov't planning = too much gov't power; too much gov't power = no freedom -Socialism = threat to freedom -Ideas not fashionable; noone seemed to listen or agree -Won Nobel Prize in 1974; focus had shifted to him TERM 8 The General Theory of Employment, Interest, and Money (Commanding Heights) DEFINITION 8 -John Keynes -How to fight the depression -Government should spend more money during the hard times and spend less money during the good times -Breath of hope and optimism to the people TERM 9 The Road to Serfdom (Commanding Heights) DEFINITION 9 -Friedrich von Hayek -Influenced Winston Churchill TERM 10 Commanding Heights of the Economy (Commanding Heights) DEFINITION 10 The segments and industries in an economy that effectively control and support the others, such as oil, railroads, banking, and steel. TERM 21 Ludwig Erhardt (Commanding Heights) DEFINITION 21 -Anti-Nazi -Free market economist -Shared Hayek's beliefs - Went on radio and made announcement -Gave up all price control; changed (abolished) all price controls -German economic miracle -Germany's Social Market economy overtook Britain's more planned economy TERM 22 University of Chicago (Commanding Heights) DEFINITION 22 -Hayek came to work here -Several economists went on to win Nobel Prize -Milton set agenda of argument at lunches at the Quadrangle Club TERM 23 "Chicago School Economics" (Commanding Heights) DEFINITION 23 -Strong belief in minimal government and emphasis on free market -Rigid government regulations were keeping prices high TERM 24 Stagflation (Commanding Heights) DEFINITION 24 Inflation and unemployment rising at the same time -The end of Keynesianism TERM 25 Lawrence Summers (Commanding Heights) DEFINITION 25 -Director of the White House's National Economic Council for President Barack Obama -"Chicago School Economics" group TERM 26 Sir Keith Joseph (Commanding Heights) DEFINITION 26 -Started the rethink of conservative policy -"Mad Monk" - Minister in the defeated government -"Think Tank" -He attacked the mixed economy making the case for capitalism - He thought we needed less freedom TERM 27 Margaret Thatcher (Commanding Heights) DEFINITION 27 -Conservative politician -Keith Joseph had an influence on her -Had a gut instinct for market economics -Father was a grocer and she helped in the shop when she was younger - Won a place in Oxford where she was involved in student politics -First woman to lead conservative party -Hayek's book "is what we believe" TERM 28 Stephen Bryer (Commanding Heights) DEFINITION 28 -Now a supreme court justice -Was then a Harvard professor - The same firms from 1938 were still there TERM 29 Alfred Kahn (Commanding Heights) DEFINITION 29 -Professor at Cornell University -Wanted meaner and leaner regulatory environment -Became head of CAB TERM 30 Civil Aeronautics Board (Commanding Heights) DEFINITION 30 -5% of their time went to stop prices that were too high -95% of their time went to stop prices that were too low -Airline deregulation led to turbulence TERM 31 English Disease/Winter of Discontent (Commanding Heights) DEFINITION 31 -Garbage men, ambulances, and grave diggers were out - People voted for a new government -Margaret Thatcher elected Prime Minister of Britain -Philosophy was naturalization, centralization, and regulation -Many saw her as uncaring TERM 32 Paul Volcker (Commanding Heights) DEFINITION 32 -Made chairman of federal reserve -Understood the problems -Believed inflation was one of worst of economic evils - Tightened money supply -Economy slowed and contracted - Unemployment hit 10% -Interest rates rose to about 20% TERM 33 Ronald Reagan (Commanding Heights) DEFINITION 33 -Carter's rival -Shared same economic philosophy as Thatcher -Became President -"If not now, when? If not us, who?" about recession -By 1982, the "dragon of inflation" had been slain TERM 34 "Reaganomics" (Commanding Heights) DEFINITION 34 -4 Key Elements -Concept of Sound Money -Deregulation - Modest tax rates -Limited government spending -Tax cuts led to huge deficits but economy began to grow -Unleashed basic constructive forces of free market TERM 35 Socialism DEFINITION 35 Theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution, of capital, land, etc., in the community as a whole