Economic Crisis In Pics

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Economic Crisis In Pics

  1. 1. Market Failures Market Volatility, War, and More…
  2. 2. Analyzing Smith and Marx Both Smith and Marx sought to make sense of the emerging global economy… • Similarly “egalitarian” • Very different philosophical roots contexts • Similar methods of • Radically different historical analysis conclusions • Enormous impacts • Neither produced on international perfect solutions political economy
  3. 3. Nash questions benefits of individual rationality…
  4. 4. 19th & 20th century labor strikes The May 4, 1883 Haymarket Riot in Chicago arose from growing class polarization in the late-19th century, and is considered one of the inspirations for international May Day observances. Chavez fought for farm worker rights in the 1960s.
  5. 5. 19th & 20th century child labor exploitation
  6. 6. 19th & 20th century child labor exploitation
  7. 7. 19th & 20th century female repression
  8. 8. Early carbon emissions Modern industrial emissions 19th & 20th century smokestacks and pollution members.aol.co m/ captncandlepowe r/portfolio2.html
  9. 9. Problems with Markets Left to their own devices, markets may have difficulty achieving: • Public goods • Equity • Morality • Sustainability • Stability 1930s unemployment relief
  10. 10. Market Volatility…. Dow Jones Industrial Average, 1800-2003
  11. 11. Historical Trends in the Global Economy
  12. 12. Global Industrial Production (%) Table 3.1, Lairson and Skidmore, p. 50. 1870 1880s 1890s 1900s U.S. 23 29 30 35 U.K. 29 27 20 15 Germany 13 14 17 16 France 10 9 7 6 Russia 4 3 5 5 Japan 0 0 1 1 India 0 0 1 1
  13. 13. Shifting Production, 1870s-1910s Percent of Global Production Source: Table 3.1, Lairson and Skidmore, p. 50.
  14. 14. Fault Lines in the Global System Late 19th Century political and economic trends contributed to rising domestic and international tensions, a series of economic crises, and the bloodiest century in history. • Wild market fluctuations • Rising economic inequality • Migrant diasporas and human insecurity • Increased interstate economic competition • Direct and indirect forms of imperialism • Weak international institutions
  15. 15. Porfirio Díaz Order and Progress The Mexican Revolution
  16. 16. Spanish American War
  17. 17. European Migration
  18. 18. U.S. Anti-Immigration
  19. 19. Archduke Ferdinand Gavrilo Princip World War I
  20. 20. World War II
  21. 21. Bad Capitalism? What was wrong with the global system? Why was increased trade and economic integration followed by such severe tension and conflict? • No control over the market (over-stimulation) • No domestic anti-poverty initiatives • No economic aid to developing countries • No international trade organizations • No respect for national sovereignty • No transnational governmental organization
  22. 22. Market Failure in America The Great Depression
  23. 23. Dorothea Lange, “Migrant Mother” Lange Walker Evans, “Floyd & Lucille Burroughs, Hale County Alabama, 1936”
  24. 24. Depression Era Images Class inequality
  25. 25. Depression Era Images The Working Poor
  26. 26. Depression Era Images Sicko
  27. 27. Depression Era Images Unemployment
  28. 28. Record Unemployment….
  29. 29. Oakies and Hoovervilles…
  30. 30. The New Deal
  31. 31. A New Deal for Workers
  32. 32. A New Deal for Growth
  33. 33. Major Paradigm Shift What, according to Friedrich Von Hayek were the dangers of the shift from pure market liberalism to the mixed-economic approach of John Maynard Keynes? Keynes • Government intervention in markets • Adjustment to economic cycles • Social safety nets Von Hayek
  34. 34. The Road to Serfdom
  35. 35. Warning Today, though there are important differences, we see many of the same patterns that contributed to an era of unprecedented violence. How states act and cooperate to address these economic challenges will determine the history you live in the coming century. • No control over the market (over-stimulation) • Rising economic inequality • Migrant diasporas and human insecurity • Increased interstate economic competition • Direct and indirect forms of imperialism • Relatively weak international institutions
  36. 36. Concluding Thoughts • Office Hours • Commanding Heights • Concluding Quote: – “A man can’t ride your back unless it is bent.” —Martin Luther King, Jr., 1960

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