Populism and Free Silver in the 1890s aka: The Wizard of Oz meets Monetary Policy NEW INFO:...

Populism and Free SilverPopulism and Free Silver in the 1890s in the 1890s

aka: aka: The Wizard of OzThe Wizard of Oz meets meets Monetary PolicyMonetary Policy

NEW INFO: Socialism?NEW INFO: Socialism?

Get your clicker! Ch 48!Get your clicker! Ch 48!

Goals: SWBAT…Goals: SWBAT…

Identify and explain Identify and explain basic micro and basic micro and macro economic macro economic ideasideas

Apply these ideas to Apply these ideas to explain and analyze explain and analyze the Populist and Free the Populist and Free Silver movements of Silver movements of the 1890sthe 1890s

Examine The Wizard Examine The Wizard of Oz as a Monetary of Oz as a Monetary AllegoryAllegory

http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html

I understand the economics behind I understand the economics behind Populism and Free Silver.Populism and Free Silver.

1- Strongly disagree1- Strongly disagree 2- Disagree2- Disagree 3- Agree3- Agree 4- Strongly agree4- Strongly agree

Intro to Econ: Key TermsIntro to Econ: Key Terms

Demand, Supply, and PriceDemand, Supply, and Price Fiscal PolicyFiscal Policy Monetary PolicyMonetary Policy Money SupplyMoney Supply Business CycleBusiness Cycle TariffTariff RecessionRecession Inflation and DeflationInflation and Deflation

http://www.thebluecollarinvestor.com/blog/wp-content/uploads/2008/11/business-cycle-graph-better.jpg

http://priyankaseconomicblog.files.wordpress.com/2009/10/calvin-on-supply-and-demand3.jpg

Intro to EconIntro to Econ

What causes prices to go up?What causes prices to go up?

Demand Change vs. Supply ChangeDemand Change vs. Supply Change

Inflation vs. DeflationInflation vs. Deflation

Economics of the 1890sEconomics of the 1890s If Demand goes down….If Demand goes down….

If Supply goes up….If Supply goes up….

DEFLATION! Prices go down!DEFLATION! Prices go down!

What was happening to crop prices in What was happening to crop prices in the late 1800s? Why?the late 1800s? Why?

What was happening to farm costs What was happening to farm costs (i.e., mortgages, manuf. goods) in (i.e., mortgages, manuf. goods) in the late 1800s? Why?the late 1800s? Why?

I have a better understanding of I have a better understanding of how supply and demand impact how supply and demand impact

prices.prices.


Economics of the 1890sEconomics of the 1890s Very high tariffs (taxes on imports)Very high tariffs (taxes on imports)

Agric. prices down (1860s to 1890s)Agric. prices down (1860s to 1890s)

Depression of 1893Depression of 1893

Why did farmers want inflation?Why did farmers want inflation?

http://www.flickr.com/photos/farlane/3791930988/in/set-72157601329141029/

Economics of 1890sEconomics of 1890s Is inflation bad?Is inflation bad?

Yes for creditors (i.e., bankers) Yes for creditors (i.e., bankers) No for debtors (i.e., farmers)No for debtors (i.e., farmers)

Some inflation is healthy, necessarySome inflation is healthy, necessary

Why did farmers want inflation?Why did farmers want inflation?

http://www.cthistoryonline.org/cdm-cho/cho/journeys/j_life_rural_farm.html

The government should have The government should have helped farmers more.helped farmers more.


Government and EconomyGovernment and Economy How can the government influence How can the government influence

the economy?the economy? Fiscal Policy: taxes and/or spendingFiscal Policy: taxes and/or spending

Monetary Policy: money supply Monetary Policy: money supply and/or interest ratesand/or interest rates

Today the Federal Reserve Bank (The Today the Federal Reserve Bank (The FED) is in charge of Monetary PolicyFED) is in charge of Monetary Policy

http://www.fotosearch.com/illustration/inflation.html

Government and EconomyGovernment and Economy Traditional Economics?Traditional Economics?

Mercantilism Mercantilism Free Market Free Market CapitalismCapitalism

Wealth of NationsWealth of Nations by Adam Smith by Adam Smith (1776)(1776)

The Government The Government should stay out of should stay out of thethe economy economy

Recessions are goRecessions are good!od!

Reality?Reality?

Government and EconomyGovernment and Economy Monetary Policy to stimulate the Monetary Policy to stimulate the

economy…economy… Increase the money supply and/or Increase the money supply and/or

lower interest rateslower interest rates Risks?Risks?

Could lead to inflaCould lead to inflation, but unlikelytion, but unlikely

if in aif in a recessionrecession WARNING: The eWARNING: The economy is a moving conomy is a moving

target!target!

Government and EconomyGovernment and EconomyRecessions During the 1800s:Recessions During the 1800s: Panic of 1819Panic of 1819 Panic of 1837Panic of 1837 Panic of 1857Panic of 1857 Panic of 1873Panic of 1873 Depression of 1893Depression of 1893

(FYI – Great Depression begins in 1929)(FYI – Great Depression begins in 1929)

Government and EconomyGovernment and EconomyHigh Tariffs During the 1800s:High Tariffs During the 1800s: Tariff of 1816 – 15 to 20 percentTariff of 1816 – 15 to 20 percent Tariff of 1824 – Whig Party and Henry ClayTariff of 1824 – Whig Party and Henry Clay Tariff of 1828 – 50 percentTariff of 1828 – 50 percent Tariff of 1832 – down slightlyTariff of 1832 – down slightly Tariff of 1857 – Democrats lower tariffTariff of 1857 – Democrats lower tariff Morrill Tariff of 1861 – 47 percentMorrill Tariff of 1861 – 47 percent ““mongrelmongrel”” Tariff Act of 1883 Tariff Act of 1883 McKinley Tariff Act of 1890McKinley Tariff Act of 1890 Dingley Tariff of 1897 – over 50 percent!Dingley Tariff of 1897 – over 50 percent!

(FYI – Hawley-Smoot Tariff of 1930)(FYI – Hawley-Smoot Tariff of 1930)

Government and EconomyGovernment and EconomyMonetary Policy During the 1800s:Monetary Policy During the 1800s: It was a mess!It was a mess!

Banks, States, and Federal govt Banks, States, and Federal govt printed moneyprinted money

First Bank of the US (1791-1811)First Bank of the US (1791-1811) Second Bank of the US (1816-1836)Second Bank of the US (1816-1836)

Federal govt wanted no debtFederal govt wanted no debt

Government and EconomyGovernment and EconomyMonetary Policy During the 1800s:Monetary Policy During the 1800s: Mint Act of 1792Mint Act of 1792

unlimited Silver & Gold at 15:1unlimited Silver & Gold at 15:1

““Crime of 1873Crime of 1873”” – govt. stopped – govt. stopped minting silverminting silver

USA essentially on gold standard in USA essentially on gold standard in 18791879

Sherman Silver Purchase Act (1890) Sherman Silver Purchase Act (1890) not enough, and soon repealednot enough, and soon repealed

Government and EconomyGovernment and EconomyMonetary Policy During the 1800s:Monetary Policy During the 1800s:

Market value vs. Official valueMarket value vs. Official value

By 1894 Market value was over 30:1 By 1894 Market value was over 30:1 (i.e., 30 silver = 1 gold) (i.e., 30 silver = 1 gold)

Populists wanted govt to resume Populists wanted govt to resume minting silver at 16:1minting silver at 16:1

FREE SILVER!!FREE SILVER!!

Government and EconomyGovernment and EconomyMonetary Policy During the 1800s:Monetary Policy During the 1800s: What if Govt minted silver at 16:1 in What if Govt minted silver at 16:1 in

1890s?1890s? Money Supply?Money Supply?

Increase! But gold deposits would go Increase! But gold deposits would go downdown

Inflation?Inflation?

Not likely since recessionNot likely since recession

I have a better understanding of I have a better understanding of U.S. government monetary U.S. government monetary

policy of the 1800s.policy of the 1800s.


The Rise of PopulismThe Rise of Populism

Tariff very highTariff very high

Farmers caught in a debt cycleFarmers caught in a debt cycle

1869-1896 crop prices down 55 1869-1896 crop prices down 55 percent!percent!

Farmers Revolted and Organized!Farmers Revolted and Organized!

Granger movement (1860s to 1880s)Granger movement (1860s to 1880s)

Farmers Alliance (1880s)Farmers Alliance (1880s)

PeoplePeople’’s Party formed in 1890ss Party formed in 1890s

1894 Unemployment over 18 percent1894 Unemployment over 18 percent

The Election of 1896The Election of 1896

Republicans Republicans endorsed William McKinleyendorsed William McKinley High tariffs and gold standardHigh tariffs and gold standard Conservative Conservative ““sound moneysound money”” position position

Democrats and Populists Democrats and Populists endorsed William Jennings Bryanendorsed William Jennings Bryan Bimetallic standard (silver & gold) at Bimetallic standard (silver & gold) at

16:116:1 WJB gave WJB gave ““Cross of GoldCross of Gold”” speech speech


Republicans/McKinley won!Republicans/McKinley won!

Democrats became party of Democrats became party of ““progressiveprogressive”” reform reform

Populist party fades away; many Populist party fades away; many positions adopted by Democratspositions adopted by Democrats


Free Silver issue disappears: WHY?Free Silver issue disappears: WHY?

Gold Discoveries in 1880s and 1890sGold Discoveries in 1880s and 1890s

By 1897 Economy was improvingBy 1897 Economy was improving

1900 Gold Standard Act1900 Gold Standard Act

New focus in ImperialismNew focus in Imperialism

The Wizard of OzThe Wizard of Oz

Book written by Book written by Frank Baum in Frank Baum in 19001900

Movie in 1939Movie in 1939 WhatWhat’’s the story?s the story?



Story begins in the Story begins in the West (Kansas) as West (Kansas) as did Populistsdid Populists


Dorothy?Dorothy? Heroine from poor Heroine from poor

farmfarm Represents honest, Represents honest,

plucky Americaplucky America

Mary Elizabeth Lease?Mary Elizabeth Lease?


Cyclone/Tornado = Cyclone/Tornado = Free Silver Free Silver MovementMovement


The Land of Oz?The Land of Oz? The Gold StandardThe Gold Standard

Oz = Gold (ounce)Oz = Gold (ounce)

http://babycreativeblog.files.wordpress.com/2009/10/tornado-4.jpg

http://www.open2.net/blogs/media/blogs/39197167_gold.jpg


Wicked Witch of the Wicked Witch of the East (WWE)East (WWE)

House lands on House lands on and killsand kills

Silver shoes put on Silver shoes put on DorothyDorothy

http://www.physicsdaily.com/physics/Grover_Clevelandhttp://www.babygadget.net/pics/silver-shoes.jpg

= Eastern = Eastern business interests, business interests, Grover ClevelandGrover Cleveland


Yellow Brick Road?Yellow Brick Road?

http://www.lonelyplanet.com/maps/north-america/usa/washington-dc/map_of_washington-dc.jpg

= Gold= Gold

Emerald City?Emerald City?

Washington DCWashington DC



http://www.flickr.com/photos/farlane/3791930988/in/set-72157601329141029/


Scarecrow needs?Scarecrow needs? Appear brainless, Appear brainless,

but smartbut smart

= western farmers= western farmers


Tin Woodman needs?Tin Woodman needs?


http://www.uni.edu/schneidj/webquests/adayinthelife/lotsofworkers.jpg

= industrial workers= industrial workers

Once flesh and Once flesh and blood; needs blood; needs bigger, kinder bigger, kinder heartheart


Cowardly Lion needs?Cowardly Lion needs?

http://www.old-picture.com/american-history-1900-1930s/pictures/Jennings-William-Jennings.jpg

= WJB= WJB

Fell asleep in….?Fell asleep in….?

Poppy Fields = Poppy Fields = ImperialismImperialism


Stopped fighting for Stopped fighting for silversilver


Travel to Emerald City?Travel to Emerald City?


= Coxey= Coxey’’s march to s march to DC for job in 1894DC for job in 1894

Emerald Palace?Emerald Palace? = White House= White House Seven passages & Seven passages &

three flights of stairs?three flights of stairs? = Crime of = Crime of ‘‘7373

http://blogs.ancestry.com/circle/wp-content/uploads/2008/08/Coxeys%20Army.bmp http://www.destination360.com/north-america/us/washington-dc/white-

house


Dorothy and Friends must?Dorothy and Friends must?


WWW = McKinleyWWW = McKinley

Fate of WWW?Fate of WWW? Melts with waterMelts with water

Farmers in West need Farmers in West need rain to counter rain to counter droughtdrought

Rain = inflationRain = inflationhttp://4.bp.blogspot.com/_RMIeFF2Drjg/Snn9B2F1yNI/AAAAAAAABR8/62cVVZGoBUM/s400/Mckinley.jpg

Kill Wicked Witch of the Kill Wicked Witch of the WestWest


The Wizard?The Wizard?


= Marcus Alonzo = Marcus Alonzo Hanna, an advisor Hanna, an advisor to McKinley & head to McKinley & head of RNCof RNC

www.nndb.com/people/013/000101707/


Wizard turns out to be Wizard turns out to be ordinaryordinary


Gang seeks help from Gang seeks help from Good Witch of the Good Witch of the SouthSouth

problems are fixedproblems are fixed

Dorothy uses silver Dorothy uses silver shoes to return to shoes to return to KansasKansas http://www.starpulse.com/Movies/Wizard_Of_Oz,_The/gallery/

WIZARDOZ007/

= supporters in South= supporters in South

How did we do? SWBAT…How did we do? SWBAT…

Identify and explain Identify and explain basic micro and basic micro and macro economic macro economic ideasideas

Apply these ideas to Apply these ideas to explain and analyze explain and analyze the Populist and Free the Populist and Free Silver movements of Silver movements of the 1890sthe 1890s

Examine The Wizard Examine The Wizard of Oz as a Monetary of Oz as a Monetary AllegoryAllegory

http://bigpicture.typepad.com/comments/images/2008/07/14/inflation_recession_alligator.jpg

I think the Wizard of Oz accurately I think the Wizard of Oz accurately reflects the people and issues of reflects the people and issues of

the 1890s.the 1890s.


I understand the economics behind I understand the economics behind Populism and Free Silver.Populism and Free Silver.


Thanks and Thanks and have a great have a great

day!day!


Populism and Free Silver in the 1890s aka: The Wizard of Oz meets Monetary Policy NEW INFO:...

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