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