2Populism and Free Silver in the 1890s aka: The Wizard of Oz meets Monetary PolicyNEW INFO: Socialism?Get your clicker! Ch 48!
3Goals: SWBAT…Identify and explain basic micro and macro economic ideasApply these ideas to explain and analyze the Populist and Free Silver movements of the 1890sExamine The Wizard of Oz as a Monetary Allegory
4I understand the economics behind Populism and Free Silver. 1- Strongly disagree2- Disagree3- Agree4- Strongly agree
5Intro to Econ: Key Terms Demand, Supply, and PriceFiscal PolicyMonetary PolicyMoney SupplyBusiness CycleTariffRecessionInflation and Deflation
7Intro to Econ What causes prices to go up? Demand Change vs. Supply ChangeInflation vs. Deflation
8Economics of the 1890s If Demand goes down…. If Supply goes up…. DEFLATION! Prices go down!What was happening to crop prices in the late 1800s? Why?What was happening to farm costs (i.e., mortgages, manuf. goods) in the late 1800s? Why?
9I have a better understanding of how supply and demand impact prices. 1- Strongly disagree2- Disagree3- Agree4- Strongly agree
10Economics of the 1890s Very high tariffs (taxes on imports) Agric. prices down (1860s to 1890s)Depression of 1893Why did farmers want inflation?
11Economics of 1890s Is inflation bad? Yes for creditors (i.e., bankers) No for debtors (i.e., farmers)Some inflation is healthy, necessaryWhy did farmers want inflation?
12The government should have helped farmers more. 1- Strongly disagree2- Disagree3- Agree4- Strongly agree
13Government and Economy How can the government influence the economy?Fiscal Policy: taxes and/or spendingMonetary Policy: money supply and/or interest ratesToday the Federal Reserve Bank (The FED) is in charge of Monetary Policy
14Government and Economy Traditional Economics?Mercantilism Free Market CapitalismWealth of Nations by Adam Smith (1776)The Government should stay out of the economyRecessions are good!Reality?
15Government and Economy Monetary Policy to stimulate the economy…Increase the money supply and/or lower interest ratesRisks?Could lead to inflation, but unlikelyif in a recessionWARNING: The economy is a moving target!
16Government and Economy Recessions During the 1800s:Panic of 1819Panic of 1837Panic of 1857Panic of 1873Depression of 1893(FYI – Great Depression begins in 1929)
17Government and Economy High Tariffs During the 1800s:Tariff of 1816 – 15 to 20 percentTariff of 1824 – Whig Party and Henry ClayTariff of 1828 – 50 percentTariff of 1832 – down slightlyTariff of 1857 – Democrats lower tariffMorrill Tariff of 1861 – 47 percent“mongrel” Tariff Act of 1883McKinley Tariff Act of 1890Dingley Tariff of 1897 – over 50 percent!(FYI – Hawley-Smoot Tariff of 1930)
18Government and Economy Monetary Policy During the 1800s:It was a mess!First Bank of the US ( )Second Bank of the US ( )Banks, States, and Federal govt printed moneyFederal govt wanted no debt
19Government and Economy Monetary Policy During the 1800s:Mint Act of 1792unlimited Silver & Gold at 15:1“Crime of 1873” – govt. stopped minting silverUSA essentially on gold standard in 1879Sherman Silver Purchase Act (1890) not enough, and soon repealed
20Government and Economy Monetary Policy During the 1800s:Market value vs. Official valueBy 1894 Market value was over 30: (i.e., 30 silver = 1 gold)Populists wanted govt to resume minting silver at 16:1FREE SILVER!!
21Government and Economy Monetary Policy During the 1800s:What if Govt minted silver at 16:1 in 1890s?Money Supply?Increase! But gold deposits would go downInflation?Not likely since recession
22I have a better understanding of U. S I have a better understanding of U.S. government monetary policy of the 1800s.1- Strongly disagree2- Disagree3- Agree4- Strongly agree
23The Rise of Populism 1894 Unemployment over 18 percent Tariff very highFarmers caught in a debt cyclecrop prices down 55 percent!Farmers Revolted and Organized!Granger movement (1860s to 1880s)Farmers Alliance (1880s)People’s Party formed in 1890s
24The Election of 1896 Republicans endorsed William McKinley High tariffs and gold standardConservative “sound money” positionDemocrats and Populistsendorsed William Jennings BryanBimetallic standard (silver & gold) at 16:1WJB gave “Cross of Gold” speech
25The Election of 1896 Republicans/McKinley won! Democrats became party of “progressive” reformPopulist party fades away; many positions adopted by Democrats
26The Election of 1896 Free Silver issue disappears: WHY? Gold Discoveries in 1880s and 1890sBy 1897 Economy was improving1900 Gold Standard ActNew focus in Imperialism
27The Wizard of Oz Book written by Frank Baum in 1900 Movie in 1939 What’s the story?
28The Wizard of Oz Story begins in the West (Kansas) as did Populists Dorothy?Heroine from poor farmRepresents honest, plucky AmericaMary Elizabeth Lease?
29The Wizard of Oz Cyclone/Tornado = Free Silver Movement The Land of Oz?The Gold StandardOz = Gold (ounce)
30The Wizard of Oz Wicked Witch of the East (WWE) House lands on and kills= Eastern business interests, Grover ClevelandSilver shoes put on Dorothy
31The Wizard of Oz Yellow Brick Road? = Gold Emerald City? Washington DC
32The Wizard of Oz Scarecrow needs? Appear brainless, but smart = western farmers
33The Wizard of Oz Tin Woodman needs? Once flesh and blood; needs bigger, kinder heart= industrial workers
34The Wizard of Oz Cowardly Lion needs? = WJB Stopped fighting for silverFell asleep in….?Poppy Fields = Imperialism
35The Wizard of Oz Travel to Emerald City? = Coxey’s march to DC for job in 1894Emerald Palace?= White HouseSeven passages & three flights of stairs?= Crime of ‘73
36The Wizard of Oz Dorothy and Friends must? Kill Wicked Witch of the WestWWW = McKinleyFate of WWW?Melts with waterFarmers in West need rain to counter droughtRain = inflation
37The Wizard of Oz The Wizard? = Marcus Alonzo Hanna, an advisor to McKinley & head of RNC
38The Wizard of Oz Wizard turns out to be ordinary Gang seeks help from Good Witch of the South= supporters in Southproblems are fixedDorothy uses silver shoes to return to Kansas
39How did we do? SWBAT…Identify and explain basic micro and macro economic ideasApply these ideas to explain and analyze the Populist and Free Silver movements of the 1890sExamine The Wizard of Oz as a Monetary Allegory
40I think the Wizard of Oz accurately reflects the people and issues of the 1890s. 1- Strongly disagree2- Disagree3- Agree4- Strongly agree
41I understand the economics behind Populism and Free Silver. 1- Strongly disagree2- Disagree3- Agree4- Strongly agree