Saturday, February 06, 2010
AP Economics: Ch. 16 T/F Quiz Analysis
Ch.16T/F Quiz
Number of Grades 19
Range of Grades (69% - 97%)
Mean 85.9%
Median 84%
Mode 97%
Grade Distribution by Grouping
%
0 - 9
10 - 19
20 - 29
30 - 39
40 - 49
50 - 59
60 - 69 1 Assessment(s) (1)
70 - 79 3 Assessment(s) (3)
80 - 89 8 Assessment(s) (8)
90 - 99 7 Assessment(s) (7)
Grade Distribution of each Grade
%
69 1 Assessment(s) (1)
70
71
72
73
74
75 3 Assessment(s) (3)
76
77
78
79
80
81 4 Assessment(s) (4)
82
83
84 2 Assessment(s) (2)
85
86
87
88 2 Assessment(s) (2)
89
90
91 1 Assessment(s) (1)
92
93
94 1 Assessment(s) (1)
95
96
97 5 Assessment(s) (5)
Friday, February 05, 2010
WH II Honors: 5 February 2010
Current Events:
The Culture of Modernity
Literature
Painting
Degas
Introduction
Social trends in the mid-1800s in France are readily apparent in the works of many of the impressionist artists. The work of Edgar Degas is a good example. In this activity you will learn about impressionism and about the contribution of Degas to a new style in painting and sculpture.
Edgar Degas
Directions
* Read the information on the Web site about Degas. Take notes as you read.
* Click on “Life” and read the information.
* Go back and click on “Artistic Styles.” Read the information.
* Click on two of Degas’ paintings and review his works.
Use the information you found to answer the following questions.
Architecture
Music
Reading Check
Explaining
How did the Impressionists radically change the art of painting in the 1870s?
Preview (Chapters 14-15)
Ch. 14 The Height of Imperialism 1800-1914
Section 1 Colonial Rule in Southeast Asia
The New Imperialism
Reading Check
Describing
What were four primary motivations for the "new imperialism?"
Colonial Takeover in Southeast Asia
Great Britain
France
Thailand--The Exception
The United States
Reading Check
Identifying
What spurred Britain to control Singapore and Burma?
Colonial Regimes in Southeast Asia
Indirect and Direct Rule
Colonial Economies
Reading Check
Explaining
Why did colonial powers prefer that colonists not develop their own industries?
Resistance to Colonial Rule
Reading Check
Summarizing
Explain three forms of resistance to Western domination.
Section 2 Empire Building in Africa
West Africa
Reading Check
Explaining
Why did the slave trade decline in the 1800s?
North Africa
Reading Check
Explaining
Great Britain was determined to have complete control of the Suez Canal. Why?
Central Africa
Reading Check
Examining
What effect did King Leopold II of Belgium have on European colonization of the Congo River basin?
East Africa
Reading Check
Evaluating
What was significant about the Berlin Conference?
South Africa
Reading Check
Describing
What happened to the Boers at the end of the Boer War?
Colonial Rule in Africa
Reading Check
Comparing
How did the French system of colonial rule differ from that of Great Britain?
Rise of African Nationalism
Reading Check
Evaluating
Why were many African intellectuals frustrated by colonial policy?
Section 3 British Rule in India
The Sepoy Mutiny
In the early 1600s, the British East India Company won trading rights on the fringe of the Mughal empire. As Mughal power declined, the company’s influence grew. By the mid-1800s, it controlled three fifths of India.
Exploiting Indian Diversity
The British were able to conquer India by exploiting its diversity. Even when Mughal power was at its height, India was home to many people and cultures. As Mughal power crumbled, India became fragmented. Indians with different traditions and dozens of different languages were not able to unite against the newcomers. The British took advantage of Indian divisions by encouraging competition and disunity among rival princes. Where diplomacy or intrigue did not work, the British used their superior weapons to overpower local rulers.
Implementing British Policies
The East India Company’s main goal in India was to make money, and leading officials often grew rich. At the same time, the company did work to improve roads, preserve peace, and reduce banditry.
Infographic
The Sepoy Rebellion
Go Online
For: Audio guided tour
Visit: PHSchool.com
Web Code: nap-2441
By the early 1800s, British officials introduced Western education and legal procedures. Missionaries tried to convert Indians to Christianity, which they felt was superior to Indian religions. The British also pressed for social change. They worked to end slavery and the caste system and to improve the position of women within the family. One law banned sati (suh tee), a Hindu custom practiced mainly by the upper classes. It called for a widow to join her husband in death by throwing herself on his funeral fire.
Growing Discontent
In the 1850s, the East India Company made several unpopular moves. First, it required sepoys (see poyz), or Indian soldiers in its service, to serve anywhere, either in India or overseas. For high-caste Hindus, however, overseas travel was an offense against their religion. Second, the East India Company passed a law that allowed Hindu widows to remarry. Hindus viewed both moves as a Christian conspiracy to undermine their beliefs.
Then, in 1857, the British issued new rifles to the sepoys. Troops were told to bite off the tips of cartridges before loading them into the rifles. The cartridges, however, were greased with animal fat—either from cows, which Hindus considered sacred, or from pigs, which were forbidden to Muslims. When the troops refused the order to “load rifles,” they were imprisoned.
Rebellion and Aftermath
Angry sepoys rose up against their British officers. The Sepoy Rebellion swept across northern and central India. Several sepoy regiments marched off to Delhi, the old Mughal capital. There, they hailed the last Mughal ruler as their leader.
In some places, the sepoys brutally massacred British men, women, and children. But the British soon rallied and crushed the revolt. They then took terrible revenge for their earlier losses, torching villages and slaughtering thousands of unarmed Indians.
The Sepoy Rebellion left a bitter legacy of fear, hatred, and mistrust on both sides. It also brought major changes in British policy. In 1858, Parliament ended the rule of the East India Company and put India directly under the British crown. It sent more troops to India, taxing Indians to pay the cost of these occupying forces. While it slowed the “reforms” that had angered Hindus and Muslims, it continued to develop India for Britain’s own economic benefit.
Checkpoint
What were the causes of the Sepoy Rebellion in northern and central India?
Reading Check
Describing
What were two effects of the Great Rebellion?
Colonial Rule
Benefits of British Rule
Costs of British Rule
After 1858, Parliament set up a system of colonial rule in India called the British Raj. A British viceroy in India governed in the name of the queen, and British officials held the top positions in the civil service and army. Indians filled most other jobs. With their cooperation, the British made India the “brightest jewel” in the crown of their empire.
British policies were designed to incorporate India into the overall British economy. At the same time, British officials felt they were helping India to modernize. In their terms, modernizing meant adopting not only Western technology but also Western culture.
Vocabulary Builder
overall—(oh vur awl) adj. total
An Unequal Partnership
Britain saw India both as a market and as a source of raw materials. To this end, the British built roads and an impressive railroad network. Improved transportation let the British sell their factory-made goods across the subcontinent and carry Indian cotton, jute, and coal to coastal ports for transport to factories in England. New methods of communication, such as the telegraph, also gave Britain better control of India. After the Suez Canal opened in 1869, British trade with India soared. But it remained an unequal partnership, favoring the British. The British flooded India with inexpensive, machine-made textiles, ruining India’s once-prosperous hand-weaving industry.
Britain also transformed Indian agriculture. It encouraged nomadic herders to settle into farming and pushed farmers to grow cash crops, such as cotton and jute, that could be sold on the world market. Clearing new farmlands led to massive deforestation, or cutting of trees.
Population Growth and Famine
The British introduced medical improvements and new farming methods. Better health care and increased food production led to rapid population growth. The rising numbers, however, put a strain on the food supply, especially as farmland was turned over to growing cash crops instead of food. In the late 1800s, terrible famines swept India.
On the positive side, British rule brought some degree of peace and order to the countryside. The British revised the legal system to promote justice for Indians regardless of class or caste. Railroads helped Indians move around the country, while the telegraph and postal system improved communication. Greater contact helped bridge regional differences and develop a sense of national unity.
The upper classes, especially, benefited from some British policies. They sent their sons to British schools, where they were trained for posts in the civil service and military. Indian landowners and princes, who still ruled their own territories, grew rich from exporting cash crops.
Checkpoint
How did British colonial rule affect Indian agriculture?
Reading Check
Examining
How was British rule degrading to Indians?
An Indian Nationalist Movement
During the years of British rule, a class of Western-educated Indians emerged. In the view of Macaulay and others, this elite class would bolster British power. As it turned out, exposure to European ideas had the opposite effect. By the late 1800s, Western-educated Indians were spearheading a nationalist movement. Schooled in Western ideals such as democracy and equality, they dreamed of ending imperial rule.
Indian National Congress
In 1885, nationalist leaders organized the Indian National Congress, which became known as the Congress party. Its members believed in peaceful protest to gain their ends. They called for greater democracy, which they felt would bring more power to Indians like themselves. The Indian National Congress looked forward to eventual self-rule, but supported Western-style modernization.
Muslim League
At first, Muslims and Hindus worked together for self-rule. In time, however, Muslims grew to resent Hindu domination of the Congress party. They also worried that a Hindu-run government would oppress Muslims. In 1906, Muslims formed the Muslim League to pursue their own goals. Soon, they were talking of a separate Muslim state.
Checkpoint
How are the origins of Indian nationalism linked to British rule?
Reading Check
Summarizing
What were the two goals of Mohandas Gandhi?
Colonial Indian Culture
Reading Check
Comparing
How did the nationalist movement parallel cultural developments in India?
Section 4 Nation Building in Latin America
Nationalist Revolts
Prelude to Revolution
Reading Check
Describing
How did Napoleon's wars affect Latin America?
Revolt in Mexico
Revolts in South America
Reading Check
Evaluating
How did the French Revolution affect Mexico?
Difficulties of Nation Building
Rule of the Caudillos
A New Imperialism
Persistent Inequality
Reading Check
Describing
What were some of the difficulties faced by the new Latin American republics?
The United States in Latin America
Revolution in Mexico
Reading Check
Describing
What was the United States's role as a colonial power?
Economic Change in Latin America
Reading Check
Evaluating
What caused the growth of a middle class in Latin America?
Chapter 15 East Asia Under Challenge 1800-1914
Section 1 The Decline of the Qing Dynasty
Causes of Decline
Reading Check
Examining
What factors led to the decline of the Qing dynasty?
The Opium War
Reading Check
Summarizing
What did the British do to adjust their trade imbalance with China?
The Tai Ping Rebellion
Reading Check
Summarizing
What social reforms did the Tai Ping Rebellion demand?
Efforts at Reform
Reading Check
Explaining
What was China's policy of "self-strengthening?"?
The Advance of Imperialism
Mounting Pressures
Internal Crisis
Internal Crisis
Reading Check
Identifying
What countries claimed Chinese lands between 1880 and 1900?
Opening the Door to China
Reading Check
Analyzing
Why did the United States want an Open Door policy in China?
The Boxer Rebellion
Reading Check
Explaining
How did the Boxers get their name?
Section 2 Revolution in China
The Fall of the Qing
The Rise of Sun Yat-sen
The Revolution of 1911
Reading Check
Evaluating
What changes did the Revolution of 1911 actually produce in China?
An Era of Civil War
Reading Check
Explaining
Why were there rebellions in China after General Yuan Shigai became president?
Chinese Society in Transition
Reading Check
Evaluating
How did the arrival of Westerners affect China?
China's Changing Culture
Reading Check
Describing
What effects did Western culture have on China?
Section 3 Rise of Modern Japan
An End to Isolation
Reading Check
Identifying
What benefits did the Treaty of Kanagawa grant the United States?
Resistance to the New Order
Reading Check
Identifying
What events led to the collapse of the shogunate system in Japan?
The Meiji Restoration
Transformation of Japanese Politics
Meiji Economics
Building a Modern Social Structure
Daily Life and Women's Rights
Reading Check
Explaining
How was Japan's government structured under the Meiji constitution?
Joining the Imperialist Nations
Beginnings of Expansion
War with Russia
U.S. Relations
Reading Check
Explaining
Why did Japan turn itself into an imperialist power?
Culture in an Era of Transition
Reading Check
Describing
What effect did Japanese culture have on other nations?
Empire Builders
Lord Frederick Lugard, a British empire builder, tried to justify imperialism in Africa with these words:
“There are some who say we have no right to Africa at all, that ‘it belongs to the natives.’ I hold that our right is the necessity that is upon us to provide for our ever-growing population—either by opening new fields for emigration, or by providing work and employment . . . and to stimulate trade by finding new markets.”
Note Taking
Reading Skill: Recognize Multiple Causes As you read the section, make a chart like the one below showing the multiple causes of imperialism in the 1800s.
Critical of British Rule
In 1871, Indian nationalist Dadabhai Naoroji (dah dah by now roh jee) criticized British rule in India:
“[Indians] call the British system ‘Sakar ki Churi’ (sa kur kee choo ree), the knife of sugar. That is to say, there is no oppression, it is all smooth and sweet, but it is the knife notwithstanding.”
Learn
Focus Question
How did Britain gradually extend its control over most of India, despite opposition?
For more than 200 years, Mughal rulers governed a powerful empire in India. By the mid-1700s, however, the Mughal empire was collapsing from a lack of strong rulers. Britain then turned its commercial interests in the region into political ones.
East India Company and Rebellion
In the early 1600s, the British East India Company won trading rights on the fringe of the Mughal empire. As Mughal power declined, the company’s influence grew. By the mid-1800s, it controlled three fifths of India.
Exploiting Indian Diversity
The British were able to conquer India by exploiting its diversity. Even when Mughal power was at its height, India was home to many people and cultures. As Mughal power crumbled, India became fragmented. Indians with different traditions and dozens of different languages were not able to unite against the newcomers. The British took advantage of Indian divisions by encouraging competition and disunity among rival princes. Where diplomacy or intrigue did not work, the British used their superior weapons to overpower local rulers.
Implementing British Policies
The East India Company’s main goal in India was to make money, and leading officials often grew rich. At the same time, the company did work to improve roads, preserve peace, and reduce banditry.
Infographic
The Sepoy Rebellion
Go Online
For: Audio guided tour
Visit: PHSchool.com
Web Code: nap-2441
By the early 1800s, British officials introduced Western education and legal procedures. Missionaries tried to convert Indians to Christianity, which they felt was superior to Indian religions. The British also pressed for social change. They worked to end slavery and the caste system and to improve the position of women within the family. One law banned sati (suh tee), a Hindu custom practiced mainly by the upper classes. It called for a widow to join her husband in death by throwing herself on his funeral fire.
Growing Discontent
In the 1850s, the East India Company made several unpopular moves. First, it required sepoys (see poyz), or Indian soldiers in its service, to serve anywhere, either in India or overseas. For high-caste Hindus, however, overseas travel was an offense against their religion. Second, the East India Company passed a law that allowed Hindu widows to remarry. Hindus viewed both moves as a Christian conspiracy to undermine their beliefs.
Then, in 1857, the British issued new rifles to the sepoys. Troops were told to bite off the tips of cartridges before loading them into the rifles. The cartridges, however, were greased with animal fat—either from cows, which Hindus considered sacred, or from pigs, which were forbidden to Muslims. When the troops refused the order to “load rifles,” they were imprisoned.
Rebellion and Aftermath
Angry sepoys rose up against their British officers. The Sepoy Rebellion swept across northern and central India. Several sepoy regiments marched off to Delhi, the old Mughal capital. There, they hailed the last Mughal ruler as their leader.
In some places, the sepoys brutally massacred British men, women, and children. But the British soon rallied and crushed the revolt. They then took terrible revenge for their earlier losses, torching villages and slaughtering thousands of unarmed Indians.
The Sepoy Rebellion left a bitter legacy of fear, hatred, and mistrust on both sides. It also brought major changes in British policy. In 1858, Parliament ended the rule of the East India Company and put India directly under the British crown. It sent more troops to India, taxing Indians to pay the cost of these occupying forces. While it slowed the “reforms” that had angered Hindus and Muslims, it continued to develop India for Britain’s own economic benefit.
Checkpoint
What were the causes of the Sepoy Rebellion in northern and central India?
Impact of British Colonial Rule
After 1858, Parliament set up a system of colonial rule in India called the British Raj. A British viceroy in India governed in the name of the queen, and British officials held the top positions in the civil service and army. Indians filled most other jobs. With their cooperation, the British made India the “brightest jewel” in the crown of their empire.
British policies were designed to incorporate India into the overall British economy. At the same time, British officials felt they were helping India to modernize. In their terms, modernizing meant adopting not only Western technology but also Western culture.
Vocabulary Builder
overall—(oh vur awl) adj. total
An Unequal Partnership
Britain saw India both as a market and as a source of raw materials. To this end, the British built roads and an impressive railroad network. Improved transportation let the British sell their factory-made goods across the subcontinent and carry Indian cotton, jute, and coal to coastal ports for transport to factories in England. New methods of communication, such as the telegraph, also gave Britain better control of India. After the Suez Canal opened in 1869, British trade with India soared. But it remained an unequal partnership, favoring the British. The British flooded India with inexpensive, machine-made textiles, ruining India’s once-prosperous hand-weaving industry.
Britain also transformed Indian agriculture. It encouraged nomadic herders to settle into farming and pushed farmers to grow cash crops, such as cotton and jute, that could be sold on the world market. Clearing new farmlands led to massive deforestation, or cutting of trees.
Railroads and TradeBy building thousands of miles of railroads, the British opened up India’s vast interior to trade. The British also encouraged Indians to grow tea (top photo) and jute (bottom photo). Today, tea is one of India’s biggest crops. What were some of the benefits of British rule?
Population Growth and Famine
The British introduced medical improvements and new farming methods. Better healthcare and increased food production led to rapid population growth. The rising numbers, however, put a strain on the food supply, especially as farmland was turned over to growing cash crops instead of food. In the late 1800s, terrible famines swept India.
Benefits of British Rule
On the positive side, British rule brought some degree of peace and order to the countryside. The British revised the legal system to promote justice for Indians regardless of class or caste. Railroads helped Indians move around the country, while the telegraph and postal system improved communication. Greater contact helped bridge regional differences and develop a sense of national unity.
The upper classes, especially, benefited from some British policies. They sent their sons to British schools, where they were trained for posts in the civil service and military. Indian landowners and princes, who still ruled their own territories, grew rich from exporting cash crops.
Checkpoint
How did British colonial rule affect Indian agriculture?
Resources
Self-check Quiz on Chapter
Vocabulary eFlashcards
Academic Vocabulary
Combined
Content Vocabulary
People, Places and Events
HW email to gmsmith@shanahan.org
1. Be sure to consider the Ch. 13 Test Prep page before the Test.
AP Economics: 5 February 2010
Ch. 16 T/F Quiz today.
Put your name on both the Scantron and the Quiz. You may write on the Quiz. If you finish early you may take out non-Economics material.
The Ch. 17 material (below) we will return to as pre-Test material but I will introduce the new material after this brief interlude.
824,000 Jobs Will Disappear On February 5th.
Ch. 18 Keynesian Macroeconomics
Keynesian Macroeconomics, 8:22
http://www.pyrolitical.com discusses how Keynesian economic theories are used by the U.S. government to determine when and where to spend money, or stimulate the economy. In this video there is a brief overview of these theories and their effects on the market. Contrasted with the Austrian view of economics.
Chapter Outline 18 Keynesian Macroeconomics
The construction of this chapter takes students from aggregate expenditures and its components (and the determinants for each), through a simple Keynesian model
and the multiplier, and then completes the model adding government and the foreign sector. At this point recessionary and inflationary gaps are examined. It is worth noting that the extension of the simple Keynesian model to the complete model (i.e., the addition of government and net exports) is illustrated using the Savings and Investment graph, while the illustration of the recessionary and inflationary gaps employ the complete aggregate expenditure figures (similar to those used earlier in the chapter). The chapter concludes with a section on the Great Depression and Keynesian analysis.
Aggregate Expenditures, p. 474, :20
Samuelson's Keynesian cross diagram is an attempt to capture the essence of Keynes' theory of effective demand. The blue line represents aggregate expenditure on domestically produced goods and services. Of all the components of aggregate expenditure, only the level of consumption is assumed to be a function of income; the other components are assumed to be autonomous. The red line expresses the accounting identity that aggregate expenditure is equal to national income. The model shows that a change in autonomous expenditure leads to a larger-sized change in national income, a relationship known as the multiplier effect.
Some Simplifying Assumptions, p. 474
Consumption and Saving, p. 475
9:21--Reference in this Nov. 1999 video is made to consumption, the stock market and dot-com booms, and the low saving rate.
Average Propensities to Consume and Save, p. 477, 11:37
An interview with John Quelch, Professor, Harvard Business School. In a tough economy, companies can succeed if they understand their customers' evolving consumption patterns and fine-tune their marketing strategies accordingly.
Marginal Propensities to Consume and Save, p. 478, 3:25
Senior Lecturer in Politics, Economics, and Statistics Dr. John "Jack" Emens talks about about what the marginal propensity to Consume (MPC) is and how it effects the flow of currency through the economy.
Other Determinants of Consumption and Saving, p. 479
Investment, p. 480, 9:51
The difference between investment and consumption.
Investment Demand, p. 481
Other Determinants of Investment Demand, p. 481
Aggregate Investment Schedule, p. 482
Checkpoint: Aggregate Expenditures, p. 483
The Simple Keynesian Model, p. 483
Macroeconomic Equilibrium in the Simple Model, p. 484, 5:33
Just as demand & supply yield the price and quantity of a particular product, Aggregate Demand (AD) & Aggregate Supply (AS) determine the macroeconomic equilibrium - price level (telling whether we have inflation), quantity of goods and services (real GDP), and, indirectly, unemployment.
The Fiscal policy and the multiplier effect Multiplier Effect, p. 485, 9:11
The Multiplier, p. 486, 3:48
Australia leading global National Broadband Network developments
The decision from the Australian government to launch a $43 billion national FttH broadband network is a clear indication that they believe broadband is essential infrastructure. It fulfils a national purpose as its trans-sector multiplier effect delivers massive social and economic benefits in healthcare, education, energy and the environment. A digital economy requires an open broadband infrastructure, and for that to work it can only be built by a utility (NBN Co). While there certainly are questions regarding the business model and the investment plan, there is widespread support for the visionary plan. During 2010 the business model needs to be developed, which will take into account the socio-economic benefits the infrastructure can deliver to the country.
The Multiplier Works in Both Directions, p. 487
Checkpoint: The Simple Keynesian Model, p. 488
The Full Keynesian Model, p. 488
Adding Government Spending and Taxes, p. 488
Tax Changes and Equilibrium, p. 489
The Balanced Budget Multiplier, p. 490, 10:39
Balance budget multiplier in Germany discussing Keynes.
This film examines the multiplier effects of balanced budget expenditure in Germany, where the government has increased taxes in the West to fund development of the East.
Adding Net Exports, p. 490
Recessionary and Inflationary Gaps, p. 491
Recessionary Gap, p. 491
Inflationary Gap, p. 492
Checkpoint: The Full Keynesian Model, p. 493
The Great Depression and Keynesian Analysis, p. 493
Ideas:
If we consider numerous sites that exist with photos of bread lines and other scenes typical of the time we will understand better the economic devastation.
Oral history may be helpful in this regard as well. Some students may have grandparents who remember the Great Depression.
Macro in microcosm. Students may share information about where they
work. Ask students employed in service locations like restaurants if they’ve ever
been told not to come in because the “place is not busy.” We can relate the impact on your earnings and spending, and in turn the effects on others, to show in a simple way the roots of the multiplier process.
Chapter Checkpoints
Aggregate Expenditures, p. 494
Question: Figure 3 earlier illustrated that investment spending is much more
volatile than consumption spending. Why is this?
The point is to check that students can: apply their knowledge of the determinants of consumption spending and investment to help evaluate the relative volatility of each component of aggregate expenditures.
The Simple Keynesian Model, p. 495
Question: Business journalists, pundits, economists, and policymakers all pay
attention to the results of the Conference Board’s monthly survey of 5,000 households called the Consumer Confidence Index.
When the index is rising, this is good news for the economy and when it is falling concerns are often heard that it portends a recession. Why is this survey important as a tool in forecasting where the economy is headed in the near future?
The point is to check that students can: synthesize their knowledge of the multiplier effect of a decrease in consumer spending with the importance of consumer spending as the major portion of aggregate expenditures in order to see the potential for a decrease in consumer spending to provide impetus for a recession.
The Full Keynesian Model, p. 495
Question: If the government is considering reducing taxes to stimulate the economy
does it matter if the MPS is .25 or .33?
The point is to check that students can: understand how changes in the size of the MPS affect the value of the multiplier and so influence the impact of a policy change. By extension, students should appreciate that the government needs to estimate factors such as the multiplier in planning policy changes.
Extended Examples in the Chapter
The Great Depression and the Keynesian Analysis
This section provides data that can help capture the magnitude of the Great
Depression: the stock market lost 90% of its value compared to the beginning of the 1930s, unemployment soared from 3.2% in 1929 to nearly 25%. Moreover, the Great Depression lasted for roughly a decade. The Keynesian model can be used to illustrate the situation of the time and to explain Keynes’s reasoning that an “injection” of government spending was needed.
For more about the Great Depression, including a timeline and some photos, see the PBS Web site at http://www.pbs.org/wgbh/amex/rails/timeline/.
Important points to note: the distrust of the government and banks, the resentment of foreign workers, the persistence of the belief in the classical model (as illustrated in President Herbert Hoover’s remarks at the beginning of the period), the need to banish fear as expressed by President Franklin Roosevelt (another term for a severe lack of consumer confidence).
Examples Used in the End--of--Chapter Questions
Questions 4 and 7 reference growth rates in different countries. Question 11 references per capita income (or output). To learn more about growth rates and per capita income in different countries, visit the CIA Factbook Web site at:
https://www.cia.gov/library/publications/the-world-factbook/.
For Further Analysis
Illustrating the Keynesian Model
This example can be used as an in-class small group exercise or as an individual in-class exercise. It is designed to complement the text’s material on the Keynesian model by requiring students to draw the graphs that illustrate the analysis. The student handout provides graphical illustration of the analysis behind the answers to end-of-chapter Questions and Problems 8, 12, and 14.
Web-Based Exercise
Keynesian Policy in Japan
This example can be used as a small group exercise or as an individual exercise.
The exercise provides an opportunity to see the Keynesian model and policies
applied to a recent example, Japan since the 1990s. This overcomes a student’s tendency to view this material as irrelevant because it is discussed in terms of the 1930s. Requiring additional research can turn this exercise into a more extensive assignment.
Read the essay “Explaining Japan’s Recession,” by Benjamin Powell (posted on
11/19/2002 on the Web site of the Ludwig von Mises Institute: http://www.mises.org) and answer the following:
1) What is the Keynesian explanation for the economic downturn in Japan?
2) What Keynesian policies have been tried? How successful have they been?
3) What does the author suggest should be done in Japan?
Tips:
One challenge in this topic is to separate business investment in real plant and
equipment from people’s financial investment in stocks, bonds, etc. Students will
likely be able to grasp the importance of consumer confidence, understanding what
amounts to a “self-fulfilling prophecy;” that is, if consumers are fearful of a recession and don’t spend then that (multiplied) decrease in spending can cause a recession.
A good analogy for the Keynesian view is to liken the economy to a car with a
low battery that needs a boost to get running again.
HANDOUT 18
Ch. 17 Pre-Test material:
For Further Analysis
Immigration: Good or Bad for Productivity?
The example provided in the student handout can be used as a small group exercise
or as an individual exercise. It is also suitable to use as the basis for a classroom debate. The exercise expands on the chapter’s coverage of the sources of long-run economic growth by exploring the issue of immigration. Students are directed to read two articles about different “types” of workers and use them as a basis for analyzing the impact of immigration.
See the paper on guest-worker programs by Mark Krikorian, executive
director of the Center for Immigration Studies for a presentation of this viewpoint.
Web-Based Exercise
This example requires students to compare two different measures of economic
freedom and to assess what aspects of economic freedom they feel are most important.
This assignment builds on the discussion on the text and also provides an
opportunity to discuss the effects of corruption on economic growth.
The Dimensions of Economic Freedom
Visit the Web site of the Fraser Institute to read its Economic Freedom of the World report. Compare it with the Index of Economic Freedom (from the Heritage
Foundation and The Wall Street Journal) by answering the following:
1) Which are the top ten countries according to each source? (Web sites are
http://www.freetheworld.com/2006/EFWinternational-rls.pdf and http://www.
heritage.org/index/topten.cfm.) 2) What categories are included in each definition of freedom? (You may consult the list of categories in the text for the Fraser Institute; for the Heritage Foundation, see the Web site at http://www.heritage.org/research/features/index/chapters/htm/index2007_chap3.cfm).
Tips
The challenge with regard to this material is how much students may take for
granted about their freedoms and the economy in which they live. Trying to give
them another perspective will help them understand the strengths of the U.S. economy and the challenges of other countries.
HANDOUT 17-1
Immigration: Good or Bad for Productivity?
Growth in the labor force is listed as a major source of long-run economic growth. But what causes the labor force to grow? As noted in the text, immigration is causing the U.S. population to rise faster than anyone thought. Is this good for productivity?
Read the article titled “Keeping Out the Wrong People: Tightened Visa Rules Are Slowing the Vital Flow of Professionals into the U.S.” by Spencer E. Ante in Business Week (October, 2004, pp. 90–94, available on the Web at: http://www.competeamerica.org/news/media_coverage/2004_10/20041004_bw.html.
Then read “The Worker Next Door,” by Barry R. Chiswick in The New York Times, June 3, 2006, p. A23. This article is available on the Web at: http://www.nytimes.com/2006/06/03/opinion/
03chiswick.html?ex=1306987200&en=676f30a3dbaf85e9&ei=5088&partner=rssnyt&emc=rss.
Based on the two articles, assess whether immigration is good or bad for U.S. productivity.
"Mankiw's 10 principles of economics, translated for the uninitiated", by Yoram Bauman, http://www.standupeconomist.com . Presented at the AAAS humor session, February 16, 2007. For the record, the talk contains two unattributed quotes ("9 out of 5" is adapted from a line attributed to Paul Samuelson---although apparently he said it about Wall Street indices, not macroeconomists---and "wrong about things" is paraphrased from P.J. O'Rourke's Eat the Rich) and, of course, the Einstein "simple" quote is an intentional misquote. The talk is based on a published article in Annals of Improbable Research (see http://www.improb.com/airchives/paper... ), which sponsored my talk and to which you should subscribe (http://improb.com/subscribe/ ). In the paper you can see the "constructive example" of how trade can make everyone worse off (or you can just wait 50 years to see what happens with climate change). More info and other clips on my website (http://www.standupeconomist.com ), and please sign up for my email list.
William Baumol. - Air date: 06-12-99
William Jack Baumol (born February 26, 1922) is a New York University economics professor (although he is also affiliated with Princeton University) who has written extensively about labor market and other economic factors that affect the economy. He also made valuable contributions to the history of economic thought. He is among the 500 best economists in the world according to IDEAS/RePEc.
Among his better-known contributions are the theory of contestable markets, the Baumol-Tobin model of transactions demand for money, Baumol's cost disease, which discusses the rising costs associated with service industries, and Pigou taxes.[1]
The 2006 Annual Meetings of the American Economic Association held a special session in his name, and honoring his many years of work, where 12 papers on entrepreneurship were presented. http://www.aeaweb.org/annual_mtg_pape...
The British magazine, The Economist published an article about William Baumol and his lifelong work to develop a place in economic theory for the entrepreneur (March 11, 2006, pp 68), much of which owes its genesis to Joseph Schumpeter. They note that traditional microeconomic theory holds a place for 'prices' and 'firms' but not for that (seemingly) important engine of innovation, the entrepreneur. Baumol is given credit for helping to remedy this shortcoming: "Thanks to Mr. Baumol's own painstaking efforts, economists now have a bit more room for entrepreneurs in their theories."
Baumol is a trustee of the Economists for Peace and Security.
1. Be sure to study for subsequent Ch. 16 (Quizzes and Test, TBA).
2. Read Ch. 17 (we will have Quizzes and a Test on Ch. 17, TBA).
3. Examples Used in the End-of-Chapter Questions
Questions 4 and 7 reference growth rates in different countries. Question 11 references per capita income (or output). To learn more about growth rates and per
capita income in different countries, visit the CIA Factbook Web site at
https://www.cia.gov/library/publications/the-world-factbook/. Email me your summary of three countries that you compared.
Thursday, February 04, 2010
WH II Honors: 4 February 2010 Ch. 14 Introduction
Current Events:
World Business Davos 2010: After the Asian financial crisis in the late 90s few would have predicted a period of rapid expansion for the region, coupled with greater economic and political stability and a much more dominant role on the world stage. But Asia has been consolidating its position for the last ten years and the NEXT ten years could be even more impressive.
Ch. 13 Mass Society and Democracy 1870-1914
Calls for a Jewish State
The Dreyfus case reflected the rise of anti-Semitism in Europe. The Enlightenment and the French Revolution had spread ideas about religious toleration. In Western Europe, some Jews had gained jobs in government, universities, and other areas of life. Others had achieved success in banking and business, but most struggled to survive in the ghettos of Eastern Europe or the slums of Western Europe.
By the late 1800s, however, anti-Semitism was again on the rise. Anti-Semites were often members of the lower middle class who felt insecure in their social and economic position. Steeped in the new nationalist fervor, they adopted an aggressive intolerance for outsiders and a violent hatred of Jews.
The Dreyfus case and the pogroms in Russia stirred Theodor Herzl (hurt sul), a Hungarian Jewish journalist living in France. He called for Jews to form their own separate state, where they would have rights that were otherwise denied to them in European countries. Herzl helped launch modern Zionism, a movement devoted to rebuilding a Jewish state in Palestine. Many Jews had kept this dream alive since the destruction of the temple in Jerusalem by the Romans. In 1897, Herzl organized the First Zionist Congress in Basel, Switzerland.
Reading Check
Explaining
Why did Jews start to move to Palestine?
The Culture of Modernity
Literature
Painting
Degas
Introduction
Social trends in the mid-1800s in France are readily apparent in the works of many of the impressionist artists. The work of Edgar Degas is a good example. In this activity you will learn about impressionism and about the contribution of Degas to a new style in painting and sculpture.
Edgar Degas
Directions
* Read the information on the Web site about Degas. Take notes as you read.
* Click on “Life” and read the information.
* Go back and click on “Artistic Styles.” Read the information.
* Click on two of Degas’ paintings and review his works.
Use the information you found to answer the following questions.
Architecture
Music
Reading Check
Explaining
How did the Impressionists radically change the art of painting in the 1870s?
Ch. 14 The Height of Imperialism 1800-1914
Section 1 Colonial Rule in Southeast Asia
The New Imperialism
Reading Check
Describing
What were four primary motivations for the "new imperialism?"
Colonial Takeover in Southeast Asia
Great Britain
France
Thailand--The Exception
The United States
Reading Check
Identifying
What spurred Britain to control Singapore and Burma?
Colonial Regimes in Southeast Asia
Indirect and Direct Rule
Colonial Economies
Reading Check
Explaining
Why did colonial powers prefer that colonists not develop their own industries?
Resistance to Colonial Rule
Reading Check
Summarizing
Explain three forms of resistance to Western domination.
Section 2 Empire Building in Africa
West Africa
Reading Check
Explaining
Why did the slave trade decline in the 1800s?
North Africa
Reading Check
Explaining
Great Britain was determined to have complete control of the Suez Canal. Why?
Central Africa
Reading Check
Examining
What effect did King Leopold II of Belgium have on European colonization of the Congo River basin?
East Africa
Reading Check
Evaluating
What was significant about the Berlin Conference?
South Africa
Reading Check
Describing
What happened to the Boers at the end of the Boer War?
Colonial Rule in Africa
Reading Check
Comparing
How did the French system of colonial rule differ from that of Great Britain?
Rise of African Nationalism
Reading Check
Evaluating
Why were many African intellectuals frustrated by colonial policy?
Section 3 British Rule in India
The Sepoy (from sipahi, soldier in Persian, the official language of the conquering Islamic Mogul Empire, War Made New, Boot, p. 89) Mutiny
The success of the British in India is largely a result of the first Industrial Revolution. "After the Indian [Sepoy] mutiny, one British colonial minister exclaimed, `The telegraph saved India'" (War Made New, Boot, p. 157). Along with impressive advances in transportation, as a result of the laying down of railroad tracks, the British improved their communications which resulted in the quick deployment of troops and the means to understand where they were needed most critically.
In the early 1600s, the British East India Company won trading rights on the fringe of the Mughal (also spelled Mogul) empire. The conquering Mughal/Mogul Empire was a Muslim dynasty founded by Baber that ruled India until 1857. As Mughal power declined, the company’s influence grew.
The transference of India from a Muslim dominated region to a British colony is clear with the onset of the gunpowder revolution (War Made New, Boot, Ch. 3, Flintlocks and Forbearance, pp. 77-102). With the battle of Assaye, "the Maratha Confederacy was the last major power that could challenge the British for mastery of India" (War Made New, Boot, p. 78). Nonetheless, if all the assembled forces, both in manpower and in artillery--Maratha vs. British were taken into account--the British were outnumbered 10-1.
A map of the engagement at Assaye on 24th September 1803.
Empire Total War: The Battle of Assaye (soundtrack version 1) by crisfire, 9:06
Warning: this video contains simulated violence; do not view if you object.
The Maratha and British armies meet between the river Juah and the river Kaitna. British casualties mount as the Maratha artillery turns its attention to the infantry. The future Duke of Wellington, Arthur Wellesley decides the only way to get his men off the killing fields is to march into the mouth of the artillery barrage. Wellesley orders his cannons abandoned and bayonets fixed.
Wellesley outflanked his Maratha opponents (War Made New, Boot, p. 96) while his orderly had his head blown off in the maneuver. Wellesley formed his infantry into two mile long parallel front lines while holding his cavalry in a third reserve line. The British charged straight at the Marathas and fighting was brutal but largely over by nightfall at 6 p.m. The British were victorious but too exhausted and with heavy losses could not pursue the fleeing Marathas. The overall British loss was estimated at 35% (War Made New, Boot, p. 99).
The battle had been won by Wellesley with a heavy cost and he needed to pursue the Marathas for an additional three months to finish the job. For his efforts at quadrupling the British holdings in India Wellesley was awarded knighthood War Made New, Boot, pp. 98-99).
By the mid-1800s, the British East India Company controlled three fifths of India.
Exploiting Indian Diversity
The British were able to conquer India by exploiting its diversity. Even when Mughal power was at its height, India was home to many people and cultures. As Mughal power crumbled, India became fragmented. Indians with different traditions and dozens of different languages were not able to unite against the newcomers. The British took advantage of Indian divisions by encouraging competition and disunity among rival princes. Where diplomacy or intrigue did not work, the British used their superior tactics, discipline, and weapons to overpower local rulers.
Why the Marathas Could Not Win
The British had mastered the gunpowder revolution while the Marathas had attempted it and found wanting (War Made New, Boot, p. 99). The Marathas had not updated updated their hit-and-run tactics with disciplined and sustained headlong infantry charges as the British had. The separate Indian chiefs issued contradictory orders while Wellesley commanded the entire British effort. The intellectual freedom and scientific pursuit of truth in battle was unknown to the tribal Marathas. Political liberalism was unknown and viewed as a threat to traditional, tribal structures in India; this proved to be their undoing (War Made New, Boot, pp. 101-102).
Implementing British Policies
The East India Company’s main goal in India was to make money, and leading officials often grew rich. At the same time, the company did work to improve roads, preserve peace, and reduce banditry.
Infographic
The Sepoy Rebellion
Go Online
For: Audio guided tour
Visit: PHSchool.com
Web Code: nap-2441
By the early 1800s, British officials introduced Western education and legal procedures. Missionaries tried to convert Indians to Christianity, which they felt was superior to Indian religions. The British also pressed for social change. They worked to end slavery and the caste system and to improve the position of women within the family. One law banned sati (suh tee), a Hindu custom practiced mainly by the upper classes. It called for a widow to join her husband in death by throwing herself on his funeral fire.
Growing Discontent
In the 1850s, the East India Company made several unpopular moves. First, it required sepoys (see poyz), or Indian soldiers in its service, to serve anywhere, either in India or overseas. For high-caste Hindus, however, overseas travel was an offense against their religion (Cf. The Lion and the Tiger, Judd, p. 73). Second, the East India Company passed a law that allowed Hindu widows to remarry. Hindus viewed both moves as a Christian conspiracy to undermine their beliefs (Cf. The Lion and the Tiger, Judd, p. 75).
Then, in 1857, the Bengal Army rebelled for a variety of reasons but one particularly troublesome point was the introduction of a new gun using animal fat that offended both Muslims and Hindus. Indian officers sentenced the rebels to ten years of hard labor (Cf. The Lion and the Tiger, Judd, p. 71).
The British East India Company had decided to equip the sepoys "with the new Enfield rifle in place of the smooth-bored `Brown Bess' musket" (Cf. The Lion and the Tiger, Judd, pp. 71-72).
1853 Enfield Rifle-Musket
The musketry books also recommended that “Whenever the grease around the bullet appears to be melted away, or otherwise removed from the cartridge, the sides of the bullet should be wetted in the mouth before putting it into the barrel; the saliva will serve the purpose of grease for the time being" (Cf. Instruction of Musketry, 1856).
This image is a work of the Smithsonian Institution, taken or made during the course of an employee's official duties. As a work of the U.S. federal government, the image is in the public domain.
Rebellion and Aftermath
Angry sepoys rose up against their British officers. The Sepoy Rebellion swept across northern and central India. Several sepoy regiments marched off to Delhi, the old Mughal capital. There, they hailed the last Mughal ruler as their leader.
In some places, the sepoys brutally massacred British men, women, and children. But the British soon rallied and crushed the revolt. They then took terrible revenge for their earlier losses, torching villages and slaughtering thousands of unarmed Indians.
The Sepoy Rebellion left a bitter legacy of fear, hatred, and mistrust on both sides. It also brought major changes in British policy. In 1858, Parliament ended the rule of the East India Company and put India directly under the British crown. It sent more troops to India, taxing Indians to pay the cost of these occupying forces. While it slowed the “reforms” that had angered Hindus and Muslims, it continued to develop India for Britain’s own economic benefit.
Checkpoint
What were the causes of the Sepoy Rebellion in northern and central India?
Reading Check
Describing
What were two effects of the Great Rebellion?
Colonial Rule
Benefits of British Rule
Costs of British Rule
After 1858, Parliament set up a system of colonial rule in India called the British Raj. A British viceroy in India governed in the name of the queen, and British officials held the top positions in the civil service and army. Indians filled most other jobs. With their cooperation, the British made India the “brightest jewel” in the crown of their empire.
British policies were designed to incorporate India into the overall British economy. At the same time, British officials felt they were helping India to modernize. In their terms, modernizing meant adopting not only Western technology but also Western culture.
Vocabulary Builder
overall—(oh vur awl) adj. total
An Unequal Partnership
Britain saw India both as a market and as a source of raw materials. To this end, the British built roads and an impressive railroad network. Improved transportation let the British sell their factory-made goods across the subcontinent and carry Indian cotton, jute, and coal to coastal ports for transport to factories in England. New methods of communication, such as the telegraph, also gave Britain better control of India. After the Suez Canal opened in 1869, British trade with India soared. But it remained an unequal partnership, favoring the British. The British flooded India with inexpensive, machine-made textiles, ruining India’s once-prosperous hand-weaving industry.
Britain also transformed Indian agriculture. It encouraged nomadic herders to settle into farming and pushed farmers to grow cash crops, such as cotton and jute, that could be sold on the world market. Clearing new farmlands led to massive deforestation, or cutting of trees.
Population Growth and Famine
The British introduced medical improvements and new farming methods. Better health care and increased food production led to rapid population growth. The rising numbers, however, put a strain on the food supply, especially as farmland was turned over to growing cash crops instead of food. In the late 1800s, terrible famines swept India.
On the positive side, British rule brought some degree of peace and order to the countryside. The British revised the legal system to promote justice for Indians regardless of class or caste. Railroads helped Indians move around the country, while the telegraph and postal system improved communication. Greater contact helped bridge regional differences and develop a sense of national unity.
The upper classes, especially, benefited from some British policies. They sent their sons to British schools, where they were trained for posts in the civil service and military. Indian landowners and princes, who still ruled their own territories, grew rich from exporting cash crops.
Checkpoint
How did British colonial rule affect Indian agriculture?
Reading Check
Examining
How was British rule degrading to Indians?
An Indian Nationalist Movement
During the years of British rule, a class of Western-educated Indians emerged. In the view of Macaulay and others, this elite class would bolster British power. As it turned out, exposure to European ideas had the opposite effect. By the late 1800s, Western-educated Indians were spearheading a nationalist movement. Schooled in Western ideals such as democracy and equality, they dreamed of ending imperial rule.
Indian National Congress
In 1885, nationalist leaders organized the Indian National Congress, which became known as the Congress party. Its members believed in peaceful protest to gain their ends. They called for greater democracy, which they felt would bring more power to Indians like themselves. The Indian National Congress looked forward to eventual self-rule, but supported Western-style modernization.
Muslim League
At first, Muslims and Hindus worked together for self-rule. In time, however, Muslims grew to resent Hindu domination of the Congress party. They also worried that a Hindu-run government would oppress Muslims. In 1906, Muslims formed the Muslim League to pursue their own goals. Soon, they were talking of a separate Muslim state.
Checkpoint
How are the origins of Indian nationalism linked to British rule?
Reading Check
Summarizing
What were the two goals of Mohandas Gandhi?
Colonial Indian Culture
Reading Check
Comparing
How did the nationalist movement parallel cultural developments in India?
Section 4 Nation Building in Latin America
Nationalist Revolts
Prelude to Revolution
Reading Check
Describing
How did Napoleon's wars affect Latin America?
Revolt in Mexico
Revolts in South America
Reading Check
Evaluating
How did the French Revolution affect Mexico?
Difficulties of Nation Building
Rule of the Caudillos
A New Imperialism
Persistent Inequality
Reading Check
Describing
What were some of the difficulties faced by the new Latin American republics?
The United States in Latin America
Revolution in Mexico
Reading Check
Describing
What was the United States's role as a colonial power?
Economic Change in Latin America
Reading Check
Evaluating
What caused the growth of a middle class in Latin America?
Chapter 15 East Asia Under Challenge 1800-1914
Section 1 The Decline of the Qing Dynasty
Causes of Decline
Reading Check
Examining
What factors led to the decline of the Qing dynasty?
The Opium War
Reading Check
Summarizing
What did the British do to adjust their trade imbalance with China?
The Tai Ping Rebellion
Reading Check
Summarizing
What social reforms did the Tai Ping Rebellion demand?
Efforts at Reform
Reading Check
Explaining
What was China's policy of "self-strengthening?"?
The Advance of Imperialism
Mounting Pressures
Internal Crisis
Internal Crisis
Reading Check
Identifying
What countries claimed Chinese lands between 1880 and 1900?
Opening the Door to China
Reading Check
Analyzing
Why did the United States want an Open Door policy in China?
The Boxer Rebellion
Reading Check
Explaining
How did the Boxers get their name?
Section 2 Revolution in China
The Fall of the Qing
The Rise of Sun Yat-sen
The Revolution of 1911
Reading Check
Evaluating
What changes did the Revolution of 1911 actually produce in China?
An Era of Civil War
Reading Check
Explaining
Why were there rebellions in China after General Yuan Shigai became president?
Chinese Society in Transition
Reading Check
Evaluating
How did the arrival of Westerners affect China?
China's Changing Culture
Reading Check
Describing
What effects did Western culture have on China?
Section 3 Rise of Modern Japan
An End to Isolation
Reading Check
Identifying
What benefits did the Treaty of Kanagawa grant the United States?
Resistance to the New Order
Reading Check
Identifying
What events led to the collapse of the shogunate system in Japan?
The Meiji Restoration
Transformation of Japanese Politics
Meiji Economics
Building a Modern Social Structure
Daily Life and Women's Rights
Reading Check
Explaining
How was Japan's government structured under the Meiji constitution?
Joining the Imperialist Nations
Beginnings of Expansion
War with Russia
U.S. Relations
Reading Check
Explaining
Why did Japan turn itself into an imperialist power?
Culture in an Era of Transition
Reading Check
Describing
What effect did Japanese culture have on other nations?
Resources
Max Boot, War Made New.
Battle of Assaye
Assaye
The Sepoy Mutiny
The Lion and the Tiger: The Rise and Fall of the British Raj, 1600-1947 by Denis Judd, in particular, Ch. 5 `The Devil's Wind:' The Great Indian Uprising, or Mutiny, of 1857-1858, on Sepoys, especially pp. 61, 69, 71-4, 76, 82, 84.
Books on India
Self-check Quiz on Chapter
Vocabulary eFlashcards
Academic Vocabulary
Combined
Content Vocabulary
People, Places and Events
Psychoanalysis expert Timothy L. Hulsey, VCU psychology professor and dean of the honors college engages students and faculty in the Core Course and the psychology, MLC and English departments in a general forum on the relationship between Freudian theory and mainstream American psychological science. The conversation includes the impact of early experiences on adult behavior, the nature of memory and conceptions of the self and society: University of Richmond.
"In Memory of Sigmund Freud" by W.H. Auden (poetry reading):
FREUD 01 World of Wonders
Paperback Freud, "Kate"
Paul Warner recording "Freud" in the studio from the album "Deadly Waterparks". Footage produced by Bright Elephant Films.
Emmeline Pankhurst video project, shadow puppet play from Singapore
Excerpt from the historical monologue "400 Years of English History" presented by artist/historian George S. Stuart as part of an exhibit of his Historical Figures at the Ventura County Museum of Art and History in Ventura California. Visit the Gallery of Historical Figures online at http://www.galleryhistoricalfigures.com.
This was a project for Mr. Smith's Politics class. It was created by Kyle Detzler, Anne Reinhart, and Cory Weber. We got 90% on it which I personally thought was great.
Hughendon Manor was the home of Benjamin Disraeli (1804 - 1881) from 1848 until his death.
In his early days Disraeli was a traveller who tried to support himself by writing, with varing degrees of success. Most of the time he had money problems until he married a wealthy woman 13 years older than he. Even though she knew he married her for the money, the relationship was very successful and he was heartbroken when she died one year before he became prime minister for the first time in 1868.
His first term was only a few months but his second term is that best known for reforms in a wide range of social areas and the expansion of the British Empire although Disraeli himself had argued some twenty years previously that colonies are a millstone around the neck of a country.
At the Congress of Berlin in 1878, Africa was carved up and Russia stiched up following its victory over the Turks and the independence of states in the Balkans.
Following the British defeat by the Zulus at Isandlwana in 1879 Disraeli was defeated at the general election and Gladstone took over for his second term. Shortly after Disraeli became ill and died.
His election defeat was unfortunate as London had tried to maintain peace in South Africa and Disraeli was furious at the local commander for starting the war and it took Queen Victoria's intervention for him to speak to Lord Chelmsford.
On January 30, 1972, British troops opened fire on unarmed and peaceful civilians in Derry, Ireland during a civil rights march. This music video is a tribute to the 14 killed and others wounded - combining video/music of U2, video from "Bloody Sunday" (2002 movie), and photographs from that day.
HW email to gmsmith@shanahan.org
1. Be sure to consider the Ch. 13 Test Prep page before Friday's Test.
Wednesday, February 03, 2010
AP Economics: 4 February 2010
Current Events:
Feb. 3 (Bloomberg) -- Mohamed El-Erian, chief executive officer of Pacific Investment Management Co., talks with Bloomberg's Tom Keene and Ken Prewitt about the outlook for the U.S. economy. El-Erian also discusses President Barack Obama's budget and the bond market. (Source: Bloomberg)
Chapter Overview
After discussing the classical model, the chapter presents material on the sources
of long-run economic growth (with particular emphasis on productivity growth)
and the importance of infrastructure. The chapter concludes with a section on innovation waves.
Chapter Outline
Extended Examples in the Chapter
The Changing Face of Innovation Waves
Looking back to Schumpeter’s creative destruction, this section argues that the time between waves of innovation is becoming shorter. It cites the work of William
Baumol, who contends that capitalism’s ability to produce a steady stream of new
ideas and processes has made capitalism the most efficient growth machine and the
best economic system for generating growth.
The sources cited for this section are “Catch the Wave: The Long Cycles of
Industrial Innovation are Becoming Shorter,” from The Economist, February 19,
1999, and The Free-Market Innovation Machine: Analyzing the Growth Miracle of
Capitalism, by William J. Baumol (Princeton: Princeton University Press, 2002).
The Ch. 17 material (below) we will return to as pre-Test material but I will introduce the new material after this brief interlude.
824,000 Jobs Will Disappear On February 5th.
Ch. 18 Keynesian Macroeconomics
Keynesian Macroeconomics, 8:22
http://www.pyrolitical.com discusses how Keynesian economic theories are used by the U.S. government to determine when and where to spend money, or stimulate the economy. In this video there is a brief overview of these theories and their effects on the market. Contrasted with the Austrian view of economics.
Chapter Outline 18 Keynesian Macroeconomics
The construction of this chapter takes students from aggregate expenditures and its components (and the determinants for each), through a simple Keynesian model
and the multiplier, and then completes the model adding government and the foreign sector. At this point recessionary and inflationary gaps are examined. It is worth noting that the extension of the simple Keynesian model to the complete
model (i.e., the addition of government and net exports) is illustrated using the
Savings and Investment graph, while the illustration of the recessionary and inflationary gaps employ the complete aggregate expenditure figures (similar to those used earlier in the chapter). The chapter concludes with a section on the Great Depression and Keynesian analysis.
Aggregate Expenditures, p. 474, :20
Samuelson's Keynesian cross diagram is an attempt to capture the essence of Keynes' theory of effective demand. The blue line represents aggregate expenditure on domestically produced goods and services. Of all the components of aggregate expenditure, only the level of consumption is assumed to be a function of income; the other components are assumed to be autonomous. The red line expresses the accounting identity that aggregate expenditure is equal to national income. The model shows that a change in autonomous expenditure leads to a larger-sized change in national income, a relationship known as the multiplier effect.
Some Simplifying Assumptions, p. 474
Consumption and Saving, p. 475
9:21--Reference in this Nov. 1999 video is made to consumption, the stock market and dot-com booms, and the low saving rate.
Average Propensities to Consume and Save, p. 477, 11:37
An interview with John Quelch, Professor, Harvard Business School. In a tough economy, companies can succeed if they understand their customers' evolving consumption patterns and fine-tune their marketing strategies accordingly.
Marginal Propensities to Consume and Save, p. 478, 3:25
Senior Lecturer in Politics, Economics, and Statistics Dr. John "Jack" Emens talks about about what the marginal propensity to Consume (MPC) is and how it effects the flow of currency through the economy.
Other Determinants of Consumption and Saving, p. 479
Investment, p. 480, 9:51
The difference between investment and consumption.
Investment Demand, p. 481
Other Determinants of Investment Demand, p. 481
Aggregate Investment Schedule, p. 482
Checkpoint: Aggregate Expenditures, p. 483
The Simple Keynesian Model, p. 483
Macroeconomic Equilibrium in the Simple Model, p. 484, 5:33
Just as demand & supply yield the price and quantity of a particular product, Aggregate Demand (AD) & Aggregate Supply (AS) determine the macroeconomic equilibrium - price level (telling whether we have inflation), quantity of goods and services (real GDP), and, indirectly, unemployment.
The Fiscal policy and the multiplier effect Multiplier Effect, p. 485, 9:11
The Multiplier, p. 486, 3:48
Australia leading global National Broadband Network developments
The decision from the Australian government to launch a $43 billion national FttH broadband network is a clear indication that they believe broadband is essential infrastructure. It fulfils a national purpose as its trans-sector multiplier effect delivers massive social and economic benefits in healthcare, education, energy and the environment. A digital economy requires an open broadband infrastructure, and for that to work it can only be built by a utility (NBN Co). While there certainly are questions regarding the business model and the investment plan, there is widespread support for the visionary plan. During 2010 the business model needs to be developed, which will take into account the socio-economic benefits the infrastructure can deliver to the country.
The Multiplier Works in Both Directions, p. 487
Checkpoint: The Simple Keynesian Model, p. 488
The Full Keynesian Model, p. 488
Adding Government Spending and Taxes, p. 488
Tax Changes and Equilibrium, p. 489
The Balanced Budget Multiplier, p. 490, 10:39
Balance budget multiplier in Germany discussing Keynes.
This film examines the multiplier effects of balanced budget expenditure in Germany, where the government has increased taxes in the West to fund development of the East.
Adding Net Exports, p. 490
Recessionary and Inflationary Gaps, p. 491
Recessionary Gap, p. 491
Inflationary Gap, p. 492
Checkpoint: The Full Keynesian Model, p. 493
The Great Depression and Keynesian Analysis, p. 493
Ideas:
If we consider numerous sites that exist with photos of bread lines and other scenes typical of the time we will understand better the economic devastation.
Oral history may be helpful in this regard as well. Some students may have grandparents who remember the Great Depression.
Macro in microcosm. Students may share information about where they
work. Ask students employed in service locations like restaurants if they’ve ever
been told not to come in because the “place is not busy.” We can relate the impact on your earnings and spending, and in turn the effects on others, to show in a simple way the roots of the multiplier process.
Chapter Checkpoints
Aggregate Expenditures, p. 494
Question: Figure 3 earlier illustrated that investment spending is much more
volatile than consumption spending. Why is this?
The point is to check that students can: apply their knowledge of the determinants of consumption spending and investment to help evaluate the relative volatility of each component of aggregate expenditures.
The Simple Keynesian Model, p. 495
Question: Business journalists, pundits, economists, and policymakers all pay
attention to the results of the Conference Board’s monthly survey of 5,000 households called the Consumer Confidence Index.
When the index is rising, this is good news for the economy and when it is falling concerns are often heard that it portends a recession. Why is this survey important as a tool in forecasting where the economy is headed in the near future?
The point is to check that students can: synthesize their knowledge of the multiplier effect of a decrease in consumer spending with the importance of consumer spending as the major portion of aggregate expenditures in order to see the potential for a decrease in consumer spending to provide impetus for a recession.
The Full Keynesian Model, p. 495
Question: If the government is considering reducing taxes to stimulate the economy
does it matter if the MPS is .25 or .33?
The point is to check that students can: understand how changes in the size of the MPS affect the value of the multiplier and so influence the impact of a policy change. By extension, students should appreciate that the government needs to estimate factors such as the multiplier in planning policy changes.
Extended Examples in the Chapter
The Great Depression and the Keynesian Analysis
This section provides data that can help capture the magnitude of the Great
Depression: the stock market lost 90% of its value compared to the beginning of the 1930s, unemployment soared from 3.2% in 1929 to nearly 25%. Moreover, the Great Depression lasted for roughly a decade. The Keynesian model can be used to illustrate the situation of the time and to explain Keynes’s reasoning that an “injection” of government spending was needed.
For more about the Great Depression, including a timeline and some photos, see the PBS Web site at http://www.pbs.org/wgbh/amex/rails/timeline/.
Important points to note: the distrust of the government and banks, the resentment of foreign workers, the persistence of the belief in the classical model (as illustrated in President Herbert Hoover’s remarks at the beginning of the period), the need to banish fear as expressed by President Franklin Roosevelt (another term for a severe lack of consumer confidence).
Examples Used in the End--of--Chapter Questions
Questions 4 and 7 reference growth rates in different countries. Question 11 references per capita income (or output). To learn more about growth rates and per capita income in different countries, visit the CIA Factbook Web site at:
https://www.cia.gov/library/publications/the-world-factbook/.
For Further Analysis
Illustrating the Keynesian Model
This example can be used as an in-class small group exercise or as an individual in-class exercise. It is designed to complement the text’s material on the Keynesian model by requiring students to draw the graphs that illustrate the analysis. The student handout provides graphical illustration of the analysis behind the answers to end-of-chapter Questions and Problems 8, 12, and 14.
Web-Based Exercise
Keynesian Policy in Japan
This example can be used as a small group exercise or as an individual exercise.
The exercise provides an opportunity to see the Keynesian model and policies
applied to a recent example, Japan since the 1990s. This overcomes a student’s tendency to view this material as irrelevant because it is discussed in terms of the 1930s. Requiring additional research can turn this exercise into a more extensive assignment.
Read the essay “Explaining Japan’s Recession,” by Benjamin Powell (posted on
11/19/2002 on the Web site of the Ludwig von Mises Institute: http://www.mises.org) and answer the following:
1) What is the Keynesian explanation for the economic downturn in Japan?
2) What Keynesian policies have been tried? How successful have they been?
3) What does the author suggest should be done in Japan?
Tips:
One challenge in this topic is to separate business investment in real plant and
equipment from people’s financial investment in stocks, bonds, etc. Students will
likely be able to grasp the importance of consumer confidence, understanding what
amounts to a “self-fulfilling prophecy;” that is, if consumers are fearful of a recession and don’t spend then that (multiplied) decrease in spending can cause a recession.
A good analogy for the Keynesian view is to liken the economy to a car with a
low battery that needs a boost to get running again.
HANDOUT 18
Ch. 17 Pre-Test material:
Examples Used in the End-of-Chapter Questions
Questions 4 and 7 reference growth rates in different countries. Question 11 references per capita income (or output). To learn more about growth rates and per
capita income in different countries, visit the CIA Factbook Web site at
https://www.cia.gov/library/publications/the-world-factbook/.
For Further Analysis
Immigration: Good or Bad for Productivity?
The example provided in the student handout can be used as a small group exercise
or as an individual exercise. It is also suitable to use as the basis for a classroom debate. The exercise expands on the chapter’s coverage of the sources of long-run economic growth by exploring the issue of immigration. Students are directed to read two articles about different “types” of workers and use them as a basis for analyzing the impact of immigration.
See the paper on guest-worker programs by Mark Krikorian, executive
director of the Center for Immigration Studies for a presentation of this viewpoint.
Web-Based Exercise
This example requires students to compare two different measures of economic
freedom and to assess what aspects of economic freedom they feel are most important.
This assignment builds on the discussion on the text and also provides an
opportunity to discuss the effects of corruption on economic growth.
The Dimensions of Economic Freedom
Visit the Web site of the Fraser Institute to read its Economic Freedom of the World report. Compare it with the Index of Economic Freedom (from the Heritage
Foundation and The Wall Street Journal) by answering the following:
1) Which are the top ten countries according to each source? (Web sites are
http://www.freetheworld.com/2006/EFWinternational-rls.pdf and http://www.
heritage.org/index/topten.cfm.) 2) What categories are included in each definition of freedom? (You may consult the list of categories in the text for the Fraser Institute; for the Heritage Foundation, see the Web site at http://www.heritage.org/research/features/index/chapters/htm/index2007_chap3.cfm).
Tips
The challenge with regard to this material is how much students may take for
granted about their freedoms and the economy in which they live. Trying to give
them another perspective will help them understand the strengths of the U.S. economy and the challenges of other countries.
HANDOUT 17-1
Immigration: Good or Bad for Productivity?
Growth in the labor force is listed as a major source of long-run economic growth. But what causes the labor force to grow? As noted in the text, immigration is causing the U.S. population to rise faster than anyone thought. Is this good for productivity?
Read the article titled “Keeping Out the Wrong People: Tightened Visa Rules Are Slowing the Vital Flow of Professionals into the U.S.” by Spencer E. Ante in Business Week (October, 2004, pp. 90–94, available on the Web at: http://www.competeamerica.org/news/media_coverage/2004_10/20041004_bw.html.
Then read “The Worker Next Door,” by Barry R. Chiswick in The New York Times, June 3, 2006, p. A23. This article is available on the Web at: http://www.nytimes.com/2006/06/03/opinion/
03chiswick.html?ex=1306987200&en=676f30a3dbaf85e9&ei=5088&partner=rssnyt&emc=rss.
Based on the two articles, assess whether immigration is good or bad for U.S. productivity.
"Mankiw's 10 principles of economics, translated for the uninitiated", by Yoram Bauman, http://www.standupeconomist.com . Presented at the AAAS humor session, February 16, 2007. For the record, the talk contains two unattributed quotes ("9 out of 5" is adapted from a line attributed to Paul Samuelson---although apparently he said it about Wall Street indices, not macroeconomists---and "wrong about things" is paraphrased from P.J. O'Rourke's Eat the Rich) and, of course, the Einstein "simple" quote is an intentional misquote. The talk is based on a published article in Annals of Improbable Research (see http://www.improb.com/airchives/paper... ), which sponsored my talk and to which you should subscribe (http://improb.com/subscribe/ ). In the paper you can see the "constructive example" of how trade can make everyone worse off (or you can just wait 50 years to see what happens with climate change). More info and other clips on my website (http://www.standupeconomist.com ), and please sign up for my email list.
William Baumol. - Air date: 06-12-99
William Jack Baumol (born February 26, 1922) is a New York University economics professor (although he is also affiliated with Princeton University) who has written extensively about labor market and other economic factors that affect the economy. He also made valuable contributions to the history of economic thought. He is among the 500 best economists in the world according to IDEAS/RePEc.
Among his better-known contributions are the theory of contestable markets, the Baumol-Tobin model of transactions demand for money, Baumol's cost disease, which discusses the rising costs associated with service industries, and Pigou taxes.[1]
The 2006 Annual Meetings of the American Economic Association held a special session in his name, and honoring his many years of work, where 12 papers on entrepreneurship were presented. http://www.aeaweb.org/annual_mtg_pape...
The British magazine, The Economist published an article about William Baumol and his lifelong work to develop a place in economic theory for the entrepreneur (March 11, 2006, pp 68), much of which owes its genesis to Joseph Schumpeter. They note that traditional microeconomic theory holds a place for 'prices' and 'firms' but not for that (seemingly) important engine of innovation, the entrepreneur. Baumol is given credit for helping to remedy this shortcoming: "Thanks to Mr. Baumol's own painstaking efforts, economists now have a bit more room for entrepreneurs in their theories."
Baumol is a trustee of the Economists for Peace and Security.
1. Infrastructure and Economic Growth, p. 470
Question: Imagine a country with a “failed government” that can no longer enforce
the law. Contracts are not upheld and lawlessness is the order of the day. How could an economy operate and grow in this environment?
The point is to check that students can: understand how important the legal framework is to economic growth.
2. Ch. 16 T/F Quiz Friday, tomorrow.




