In 1-2 sentences, explain what this political cartoon is saying. The American Frankenstein 1874
Objectives At the end of this lesson, you should be able to: List the conditions under which farmers lived in the late 1800s and the reasons for these conditions Identify the Grangers State the importance of Munn v Illinois State why the Interstate Commerce Commission and the Sherman Anti-Trust Act were ineffective in alleviating the plight of the farmer
Condition of Agriculture, 1880s New technology Cheap land Overproduction Plummeting prices Agricultural products Farmers Heavy mortgages Widespread poverty Natural disasters Discriminatory railroad rates. High tariffs
Tariffs Get A Partner: One That Does Not Require You To Move Your Seat
A Primer on Protective Tariffs Definition: A tariff is a tax on imports. Two types of tariffs: Revenue tariffs. Protective Tariffs
Revenue Tariffs Revenue tariffs are designed to raise money for the country imposing them. They are calculated to be small enough so as not to curtail trade. With your partner, create a scenario where a revenue tariff makes sense for the U.S. (Hint: Probably something we don’t make a lot of, but we consume in large quantities).
Revenue Tariff Example: The United States imposes a five percent tariff on foreign wine. Pre tariff price: $20.00 bottle After tariff price: $21.00 bottle Result: Demand will probably not drop much for the product and the imposing country will raise funds.
With your partner, create a scenario where a protective tariff makes sense for the U.S. (Hint: Probably something we do make lots of and compete with other countries over).
Protective Tariffs Protective tariffs are intended to keep identified foreign products out of our country so that Americans will purchase domestic made products. They will “Buy American!”
Protective Tariff Example Foreign Steel Cost $100 per ton Domestic Steel Cost $120 per ton With 30% Tariff $130 per ton US Sales Foreign Sales An artificial increase in foreign prices
Foreign Reaction? What might other countries do in response to a protective tariff? (Partners)
Foreign Reaction? Foreign countries who find it more difficult to sell their products in our country because of our tariffs, often retaliate by imposing tariffs on our exports.
Hurt Helped Consumers Exporters Owners of Protected Industries Workers in Protected Industries
What could the farmers have done to express their displeasure?
Another Option:The Grangers (1867) Lobbied Midwestern legislatures for Granger laws regulating: –Rates charged by RR, –Grain operators –Political Issues Hand- Out Which side of the political spectrum are the Grangers leaning?
Today you will be able to: Describe the difference between a debtor and creditor and analyze what each would have thought about the money supply. Explain what a “tight” and “loose” money supply is. Identify William Jennings Bryan and analyze his “Cross of Gold” speech. Explain and analyze the results of the election of 1896.
Monetary Policy Handout and Worksheet Silently read first two paragraphs Gold Only Money Supply - The U.S.’s money supply was based on Gold which was scarce. Therefore, money (actual cash) was scarce. Silver and Gold Money Supply- If the U.S.’s supply was based on Silver and Gold, the combination would be less scarce and money (actual cash) would be more plentiful.
It’s Easy Then, More Cash is Better! Not So Fast! What could be the Problem with more cash? The less there is of something, the more valuable it becomes. The American dollar would possibly lose value. Creditors V. Debtors- What would they think?
Worksheet Example Deflation Inflation Greenback Party “Free Silver” Populists
4:19 Cross of Gold William Jennings Bryan “Cross of Gold”