1. Evolution to Modern Liberalism
Top ten things you need to know

2. Evolution of liberalism - Enlightenment1
Evolution of liberalism - Enlightenment
response to the high level of government control
Freedom from the government (negative freedom)

3. Evolution of liberalism - Progressivism2
Evolution of liberalism - Progressivism
During the nineteenth/twentieth centuries – response to the level of corruption due to the low levels of government controls
Freedom through the government by making things more even (positive freedom)

4. Image courtesy of www.learnalberta.ca/content/sspes/index.html3

5. Theodore “Teddy” Roosevelt4
Theodore “Teddy” Roosevelt
Progressive movement
Response to laissez-faire
Robber barons (Rockefeller, Carneigie)
Trusts (Standard Oil)
Square Deal – everyone have a chance to succeed
Anti-trust laws (break up monopolies)
Protection for unions
Labor laws

6. Franklin “FDR” Roosevelt5
Franklin “FDR” Roosevelt
Great Depression
New Deal
Government programs to “Prime the pump”
Work programs, bank reform
Pensions and employment insurance
More labor laws to protect workers

7. 6 Influence of J.M. Keynes Deficit financing
government uses fiscal and monetary policies to reduce the extremes in the business cycle
During a recession the government will go into recession
During a recovery the government will pay off the deficit

8. Fiscal and monetary policies7
Fiscal and monetary policies
Fiscal – taxes and spending
Monetary – money supply and interest rates

9. Vicious and virtuous cycle8
Vicious and virtuous cycle
When people lose their jobs, they spend less money, which means other private businesses lose money and need to lay people off, making the cycle worse
By using fiscal and monetary policies you can increase demand, which will reverse the cycle, making it virtuous
DEMAND- SIDE ECONOMICS
If the economy becomes overheated you want to slow it down, so you reverse the fiscal and monetary policies to slow it down

10. Taxes Revenue Spending Funds To reverse a recession Deficit
Deficit Financing
Taxes
Revenue
Spending
Funds
To reverse
a recession
Deficit
(Debt)

11. Taxes Revenue Spending Funds (Surplus) Pay off the deficit To reduce
Deficit Financing
Taxes
Revenue
Spending
Funds
(Surplus)
Pay off the deficit
To reduce
inflation

12. 9
Concern - deficit
If not paid off = debt

13. Why do we have such huge debts?10
Why do we have such huge debts?
People don’t vote for politicians who say they are going to reduce government services and increase taxes