Monday, February 13, 2012

Craig's Questions

1. Why look beyond the Great Depression when trying to make sense of our current economic woes?

2. Where are these professors from?
•Michael Bernstein is a professor of History in Economics at Toulain U.

3. What are some of the differences between the 19th century panics and those in the 20th century?
•The 19th century panics were caused by things like bank failure due to agricultural reasons, like failed crops and the loans given out to families. 20th century crashes are caused by consumer welfare, meaning people lose their jobs, and they can't buy things as often as they used to, or for the same price, meaning companies who make said items must raise their prices to make ends meet.

4. Briefly explain the "business cycle."
•Patterns in the ebbs and flows of commerce you can trace quantitatively, lasting from a decade to a dozen years. They follow a periodic pattern: Businesses expand-->hire more workers--> produce more goods-->sell more goods---resource constraints (fuel, materials, labor costs)--> prices go up to make ends meet (the boom)--->"Peak"--> laying off workers---> less income for workers--> buy fewer things-->prices and wages lower, companies can again hire more workers and produce more goods--> (REPEAT)

5. Define hubris. What example does Great Depression expert Michael Bernstein provide?
•Being cocky. Bernstein says that the economists that said they had "tamed the business cycle" were being cocky and over confident about their work.

6. Name the years of five other Panics besides the Great Depression.
•1819, 1857, 1873, 1893, 

7. Why do you think no one has ever paid reparation to those who have lost money in these meltdowns even though laws were broken?
•Because people are greedy.

8. Who made up the Progressive Party?
•Theodore Roosevelt

9. When did they form and what led to the formation?
•1912. They formed because Roosevelt wanted an "honestly elected" convention, one that wasn't controlled by his adversary in the presidential campaign.

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