1. Historical Patterns in US Economy & Economic Policy April 1, 1999

2. US Economy over Time Agrarian Society Industrial Society Post Industrial Society

3. Agrarian Society 1780-1870 Subsistence Agriculture Plantation Economies Land Rich, Cash Poor Relatively high level of equality; relatively low income

4. Industrial Society 1870-1970 Mass Production National Market Corporations Urbanization Concentration of Economic Power Income Inequalities Class conflict

5. Post Industrial Society Movement of information Education in place of natural resources Brains not brawn Rapid Change

6. Economic Growth is not Constant Recessions -- total output declines for 2 or more quarters Relationship of Unemployment to Inflation (As unemployment declines, inflation increases) As usage of productive capacity increases, productivity decreases and inflation increases

7. Inflation Impact Inflation destroys growth Inflation weakens middle class Inflation has its own momentum, that can lose control Inflation heightens social conflict

8. Five Eras of US Economic Policy

9. Building the Infrastructure Nationalizing the debt and Hamilton National Economic Policy Tariffs to stimulate local production National bank Land sales to finance public goods

10. Economic Regulatory State 1879-1920 Railroad Monopolies and ICC Sherman Anti-Trust Act Standard Oil Progressive Era -- Child Welfare Laws

11. Welfare State: Regulation of the Business Cycle 1930-1942 Great Depression and threat to Capitalism and Democracy New Deal and Protection of Business -- FDIC, Social Security, FCC http://www.ssa.gov/history/early.html

12. The Depression Challenged American Capitalism

13. Military Industrial Partnership 1942-1965 Rapid Growth and involvement of government in business sector Interstate Highway NDEA Big Businesses

14. Social Regulatory State 1965-1975 Great Society Programs Reduce Risk to ‘all Citizens\ Equal Opportunity Medicare/Medicaid

15. Political Economic Culture of the United States Americans Support Capitalism and do not like Big government Americans support equality of opportunity, not equality of outcomes Americans tend to be pragmatic economic conservatives, not laissez faire adherents Americans support earned rights not entitled programs (Yes to Soc. Sec. No to Welfare)