poli sci study guide 3

poli sci study guide 3 - Classical inflation and...

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Classical inflation and unemployment – rise in prices w/o corresponding rise in quality Classical inflation based on overheated demand. Unemployment when people willing and able to work cannot find employment. Classical unemployment the result of economic stagnation. To control classic inflation, reduce the money supply: raise the reserve requirement, raise the discount rate, and sell. To control classic unemployment, increase M1 by lowering the reserve requirement, lowering the discount rate and buying Wage price spiral inflation – Two kinds of inflation: Classical and wage price spiral. There is another kind of inflation, a wage price spiral that is the product of administered prices. Began with inflationary pressures of the war. War is the most inflationary activity in which government can engage. Wage price spiral inflation may be addressed with price controls as in World War 2 with rationing. Price controls work! controlling wage-price spiral inflation: price control – Wage price spiral inflation may be addressed with price controls as in World War 2 with rationing. Price controls work! Hardcore unemployment or structural unemployment – Keynes may be unable to address second kind of unemployment: structural or hard core unemployment that is not due to lack of opportunities. Some people are unemployable What group is harmed most by inflation. Why? – Unemployed. 3 purposes for regulating business – to ensure products are safe and effective, to protect the health and safety of employees, and to protect the environment. Crimes against persons v. crimes against property – Crimes against property entail calculations of gains and costs. Deterrence feasible. E.g. larceny, burglary, mugging Crimes against persons or violence entail irrational passions that do not respond well to deterrence. E.g. Homicide, assault, rape Evolving Standards of cruel and unusual punishment: Furman v. Georgia, 408 U.S. 238 (1972) was a United States Supreme Court decision that ruled on the requirement for a degree of consistency in the application of the death penalty. The Court consolidated Jackson v. Georgia and Branch v. Texas with the Furman decision, and thus also invalidated the death penalty for rape. The court had also intended to include the case of Aikens v. California, but between the time Aikens had been heard in oral argument and a decision was to be issued, the Supreme Court of California decided in California v. Anderson that the death penalty violated the state constitution, thus the Aikens case was dismissed as moot since all death cases in California were overturned. In the Furman case, the victim awoke in the middle of the night to find William Henry Furman burgling his house. At trial, in an unsworn statement allowed under Georgia criminal procedure, Furman said that while trying to escape, he tripped and the weapon
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he was carrying fired accidentally, killing the victim. This contradicted his prior statement to police that he had turned and blindly fired a shot while fleeing. In either
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poli sci study guide 3 - Classical inflation and...

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