Political Science 2211E Study Guide - Midterm Guide: Financial Regulation, Capital Control, Deposit Insurance
4 Apr 2020
School
Department
Course
Professor
Document Summary
Led to economic nationalism: tariffs, capital controls, controls on immigration. Workers mobilize through growth of unions and socialist parties. Mainstream parties and business began to support more intervention. Began with roosevelt"s new deal in 1930s. Interventionist policies: business regulation, labour regulation, social programs, job stimulus. Financial regulation through sec: when banks are allowed to do whatever they want which can cause stock market bubbles (asset market, preventing from the bubble emerging in the first place, preventing investors from investing on borrowed money. Deposit insurance through fdic: prevent runs on banks. Recognized unions, collective bargaining and right to strike. Boosted union power and pressure for more intervention. 1935 social security act in us: pensions, employment insurance, welfare, disability support. Struck down by courts for treading on provincial jurisdiction. Eventually canada followed us lead mainly after wwii. Governments abandon g. s. to stimulate their economies. Reflected shift from free market to keynesian ideas. Key was need to prevent high unemployment.
