ISS 315 Exam 3
Middletown 2007: Rising household debt from 55% of household income in 1960s to __% by 2007.
138
U.S. Tax Revenue as Percent of GDP: AVERAGE __%
16.5
GATT: Tariffs averaged 40% in __; 5% in __
1940 1993
Government withdrew from public provisioning: Unemployment benefits reduced to cover only _% of those out of work.
40
U.S. Tax Revenue as Percent of GDP: Corporate tax has fallen from __% to ___
>4 to ~2%
Stagnant Wages and Rising Productivity: Worker productivity has increased due to ___ but so has the number of workers required to produce goods. The 2008 GM Super Bowl robot commercial.
automation
The Four Modernizations
Agriculture Industry Education Science and defense
Middletown: Robert and Helen Lynn's first study in 1929: ___ Class addressed their activities primarily to people by selling or promoting things, services and ideas.
Business
Government withdrew from public provisioning: ___ support for state universities. In 1980s, 70% of MSU's budget came from the states and 30% from tuition. 2012 it's 30% from the state and 70% from tuition.
Declining
what are EPZs?
Export processing zones
GATT stands for what?
General Agreement on Trade and Tariffs
GSP stands for what?
Generalized System of Preferences
GATT: Non-Tariff Barriers, such as safety inspections, health (MMR), ___ labeling in Europe.
Genetically Modified food
Eccles insight: Opponents offered an "ethical" argument that economic laws were __-given, ___ proven and that government's only role was to balance the federal budget. Lowering taxes and interest would stimulate ___ investment.
God scientifically private
GATT: ___ export increased on average 6% annually from 1950 to 1997. Total trade in 1997 is __X the 1950 level.
Merchandise 14
"Middletown" is where?
Muncie Indiana
Middletown: 1935 study assessed impact of the Depression: Apart from the business class's grudging acceptance of FDR's ___ in the local economy, report nothing changed.
New Deal
Middletown: Largest employers: Wal-Mart, Ball Memorial Hospital and Cardinal Health System, Sallie Mae, Ball State U, Muncie schools and municipal government.
No blank
Middletown: Robert and Helen Lynn's first study in 1929: ___ Class made their living making things and performing services. The largest employers: Delco Remy, Westinghouse, Indiana Steel and Wire, GM, and Borg-Warner.
Working
Eccles insight: "Mass production has to be accompanied by mass ___. " Taking purchasing power out of the hands of the mass ___, savers denied themselves the kind of demand that would justify an investment of their capital accumulation in new plants.
consumption consumers
Eccles insight: Reduced demand => reduced ___ => reduced __ => reduced ___
employment consumption demand
Middletown: 2007 Vastly divergent wages and lifestyles: Working Class made __ things and offered more ___.
fewer personal services
Jeremy Bentham "Utilitarianism": A branch of ethics holding that the purpose of all law should be to produce the greatest amount of ___, counting each person's ___ equally.
happiness happiness
GATT: Eliminate quantitative restrictions - limiting the number of cars ___ from a given country (cf. 'voluntary restraint')
imported
Middletown 2007: "Public" services coming to mean "___" services.
inadequate
Middletown 2007: Used soaring __ and __ to invest in stock market. Got burned in the 1929 Stock Market crash and again as the __ bubble burst in the 1990s and the ___ bubble in the 2000s.
incomes credit dot.com housing
Jeremy Bentham "Utilitarianism": Taxing the wealthy to help the poor therefore ___ the sum total of happiness.
increases
Government withdrew from public provisioning: Deregulated Wall Street allowing commercial banks to act as ___ banks while insuring them against major losses.
investment
Stagnant Wages and Rising Productivity: Companies slashed __ and wages, cut benefits, sifted retirement to 401(k) and eliminated or increased worker contributions to ___ insurance.
jobs health
Jeremy Bentham "Utilitarianism": Taking $1,000 from some who is ___ diminishes his happiness slightly but increases the __ man's happiness greatly.
rich poor
Reciprocity: If Country A lowers its tariff on an item imported from Country B, then Country B must __ its tariff on that item imported from Country A.
lower
Eccles Insight: During 1929 Crash, his depositors demanded their ___; he called in ___ and ___ to shore up his banks reserves. Credit and loans dried up for small businesses
money loans and credit
GATT: WTO is an institutional body to monitor and enforce ___ arrangements between countries.
multilateral
GATT: Begun in 1947 with 23 countries, GATT expanded by '___' of negotiations to include 143 countries until 1993 when it was superseded by the ___
rounds World Trade Organization.
GATT: Elimination of trade discrimination - treat all countries the ___.
same
Middletown 2007: The old "Business Class" is __, better __, and more ___.
smaller educated professional
Eccles insight: Convinced him that government needed to ___ to stimulate the economy to offset the lack of spending by ___ and __ even if it meant increased government debt.
spend business and consumers
GATT: Goal to facilitate trade by eliminating ___, ___ restrictions and other non-tariff barriers (NTBs).
tariffs quantitative
Eccles insight: Proposed __ relief, ___ works, ___ refinancing, old age __ and higher taxes on the ___ to control capital accumulation and speculation.
unemployment public mortgage pensions wealthy
Unraveling the Bargain 1970-2000: Stagnant Wages and Rising Productivity Globalization and outsourcing means that blue collar and now __ collar workers are competing with workers in ___ wage countries (Mexico, now China) keeping wages low
white low