History of Economics

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History of Economics
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At the beginning of his existence,

• man was a
• ___________
• ___________.

hunter
gatherer
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He later developed skills as a
planter

• ___________
• ___________.
• Therefore, ______ gained tremendous value.

herder
land
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That land was
cultivated

• ________ so he could have _______!
• Now, whats the deal with food??!

food
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?

• Discrepancy
• Event
• Inquiry!

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What is the deal with this?!

• The small family farmer is going out of
  business!

And yet
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There is tons of food!
What is the deal with that?
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Now, not only that
?

• But what about this???

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There is tons of food!
And yet
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There are starving people in Africa! (Not to
mention in half of the rest of the world)
What is the deal with that?
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Discrepancy Event Inquiry Answers

• Farm production today is highly capitalized. It
  is all run by corporations now!
• Poor people dont get food not because of
  environmental problems. It is because of
  political problems.

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Again, land had great value!

• Property then needed to be __________, so
  ___________ was instituted.

protected
government
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population

• As _________ grew, ___________ assumed greater
  role over ____ ___.
• Because people in _____ have always controlled
  land, _____ __________ arose.

government
land use
power
class differences
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Before money, there was
barter

• _______. (Whats this?)
• Modern money began when

Gold was held by goldsmiths in their vaults.
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He would give the bearer a certificate indicating
how much gold was in the vault.

• After a while, people started using the
  certificates instead of the gold as mediums of
  exchange!

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This led to the concept of
banking

• ________. This is

Using money kept in vaults to lend to those who
will use it to produce things.
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The banking industry was kept from growing in the
Dark Ages.

There were strict moral prohibitions against
usury.
What is usury?
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Key points in history

• 1500s ______________
• 1600s ________
• 1700s _________

Age of Exploration
Dutch
Built great economic empire!
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How were the Dutch so economically powerful?

• Amsterdam.
• East Indies Company.
• Joint-Stock Companies.

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Key points in history

• 1500s ______________
• 1600s ________
• 1700s _________

Age of Exploration
Dutch
Great Britain
Built great economic empire!
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In 1776,
Adam Smith

• _________ published
• ___________.

The Wealth of Nations
It was one of the most important works in world
history
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Smith started classical economics. He said

• Free trade is best.
• Self-interest is good.
• The invisible hand makes all of society better
  off.

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Smith was the most articulate defender of
capitalism. Who challenged his ideas in the late
1800s?

• Hint He originated the ideas of communism.

Karl Marx
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1800s
The Industrial Age

• ______________ began.

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Reasons for its advent

• New technology.
• Better transportation and communication.
• Growth of urban areas.

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Significant individuals were

Andrew Carnegie
In STEEL
John Rockefeller
In OIL
J.P. Morgan
In BANKING

• They werent exactly robber barons! Why?

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Other important factors

• Factory Process
• (Textile industry)
• Stock Exchange
• In the U.S
• Immigration!

• Agricultural Revolution
• Steam power
• Railroads

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What did the Industrial Age do?

• Because of the benefits of mass production

Not just for us rich people
It made life materially better for many more
people!
But for us other people!
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The serious problems, however

• Monopolies (abuse of business power).
• Abuse of labor.
• Pollution.

These led to government regulatory agencies.
Like?
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2000s and beyond

• We are moving into the ____________.

Information Age
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2000s and beyond

• In fact, anything computer is now called
  I.T. Whats I.T. stand for?

Information Technology