Political Science 2211E Lecture Notes - Lecture 1: Financial Regulation, Capital Control, Mixed Economy

• School: Western University
• Department: Political Science
• Course: Political Science 2211E
• Professor: Adam Harmes

Document Summary

The era of economic intervention: the political implications of the great depression, the post war international economy, the post war growth of the mixed economy. Great depression: raised interest rates to defend currencies, no bank bailouts, austerity not auto stabilizers or stimulus, trade protectionism, led to massive unemployment. Political implications of the great depression: undermined support for free market ideas, undermined trade and globalization, led to economic nationalism, tariffs, capital controls, controls on immigration. Political implications of the great depression: growing demands for government intervention, workers mobilize through growth of unions and socialist parties, mainstream parties and business began to support more intervention. The mixed economy: began with roosevelt"s new deal" in 1930s, interventionist policies, business regulation, labour regulation, social programs, job stimulus. Regulation on business: alphabet soup" of new government agencies, financial regulation through sec, deposit insurance through fdic, working conditions, health and safety.