Inflation/Deflation What is inflation? What could the government do to fight this? What is deflation? What could the government do to fight this? Which.
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Presentation on theme: "Inflation/Deflation What is inflation? What could the government do to fight this? What is deflation? What could the government do to fight this? Which."— Presentation transcript:
1 Inflation/DeflationWhat is inflation? What could the government do to fight this?What is deflation? What could the government do to fight this?Which is worse? Why?
3 I. Farmers’ Problems Debts Railroads charged high prices for shipping and storageFew companies- little competitionFarmers bought seeds on credit w/high interest ratesPrices fell, farmers mortgaged their farmsBanks foreclosed on farms
5 Monetary IssuesGreenbacks, money not backed by a metal, were printed during the Civil War- not worth muchGreenbacks phased out, value of money went up (deflation)With prices falling, farmers wanted more money in circulation
6 II. Rise of Populism Farmer’s Alliances The Grange, founded by Oliver Hudson Kelley, helped organize farmers and fight against railroads and banksother Farmers’ Alliances were formed and organized lecturers
8 Populist Party “People’s Party” formed 1892 Platform: Lift tax burden from farmersIncrease money supply- higher pricesGraduated income taxFederal loansPopular election of senators, secret ballots, 1 term for President8-hr work day, immigration reformParty had early success, adopted by Democratic Party
10 Panic of 1893Causes: Farmer debt, fast growth of railroads, limited gold supplyEffects: Stocks fell, silver dropped, businesses and banks collapsed, unemployment, wages and prices fellYearLebergottRomer18904.018915.44.818923.03.7189311.78.1189418.412.3189513.711.1189614.512.0189712.4189811.618996.58.719005.0
11 Silver and Gold Gold Bugs- wanted $ backed by gold standard Bankers and businessesStable currency, deflationSilverites- wanted bimetallism, $ backed by silver and goldFarmers and laborersInflation, stimulate the economy
13 III. Fall of Populism Election of 1896 William McKinley (Rep., Gold) vs William Jennings Bryan (Dem., Silver)Bryan campaigned hard but McKinley outspent BryanMcKinley won, killing the Populist movement
14 Legacy of PopulismPopular movements of the poor could have political impactMany reforms ideals would later succeed