week 5 reading guide

week 5 reading guide - Week 5 reading guide 1 What was...

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Week 5 reading guide 1. What was “social democracy”? How did the Swedish and American versions of social democracy compare? (pp. 230-236) Business leaders from which types of industries in the United States were most likely to support social insurance and the recognition of organized labor? Why? (pp. 245-247) Social democracy was governments backed by coalitions of workers and farmers who took responsibility for macroeconomic management, social insurance and social security, and labor rights. Swedish social democracy consisted of two pillars. 1) The first pillar of social democracy was countercyclical demand management, government commitment to alleviate the business cycle. a) Social Democratic governments went further, attempting to reduce the amplitude and frequency of cyclical downturns in general, to maintain full employment. They used monetary policy to keep prices from falling or rising too much and fiscal policy to sustain economic activity b) Between 1933 and 1935 the Social democrats implemented emergency and public works that employed an average of sixty thousand workers and gave another thirty-five thousand cash assistance. i) The deficits needed to run the “Crisis Policy” were 2 or 3 percent of GDP and the policy was phased out after 1935. 2) The Second pillar of Swedish social democracy was social insurance a) By the 1930s the Swedish government was providing its people something approaching cradle-to-grave social assistance. b) The farmer-labor alliance became a hallmark of the social democratic welfare state. i) The social democratic solution included the incorporation of labor into the political system. ii) Giving the Agrarians tariffs and price supports for dairy products, meat, bacon, eggs, and other locally produced food goods, in return for supporting the Social Democrats’ pro-labor policies. The American version of social democracy 1) Franklin D. Roosevelt took office a) Took the dollar off gold and devalued, which helped recovery. b) With in a 100 days adopted emergency programs to regulate industrial prices, support agriculture, and build and manage large public works. c) In 1935 the Roosevelt administration had settled on the second New Deal i) Included job-creating government programs, social insurance, and labor rights ii) An array of federal agencies and programs iii) Focused on reducing unemployment and providing social insurance iv) A few months after March 1935 Congress passed the Social Security Act
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2) The Roosevelt administration centralized government spending: In the late 1920s
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This note was uploaded on 02/26/2009 for the course INTB 3351 taught by Professor Priest during the Fall '08 term at University of Houston.

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week 5 reading guide - Week 5 reading guide 1 What was...

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