Karteikarten
geog final
Karten in diesem Stapel (43)
- 1How does the demand curve operate in a goods versus an asset market (see film and worksheet on “The Flaw”)Goods market- prices rise, demand falls
Asset market- prices rise, demand rises - 2How does the growth of credit and lending lead to growth in the financial sector at a faster rate than in any other sector (see film and worksheet on “The Flaw”)Credit bubble creates system that boosts financial profitability more than profitability in other sectors
- 3FHA created inequality (sanctioning segregation) by standardizing “good” mortgages (see film and worksheet on “The Flaw”)20% of whether a mortgage should be approved based on race and class mixing, mortgages with discriminatory or restrictive deeds considered good investment
- 4Predatory loans offered to communities previously excluded from financial services (see film and worksheet on “The Flaw”)Neighborhoods previously excluded from financial services (redlining) were flooded with investment
Banks could sell mortgages immediately to investors, no longer cared if mortgage would be paid off
No ratio loan- do not need to disclose income
CDO- collection of mortgages at various risk levels, toxic assets, higher risk higher yield
Predatory lending- bank gives out risky loans for profit speculation - 5During the financial crisis, what was the relation between houses prices and wages and how does this relate to the distribution of wealthAs house prices were rising, incomes were falling, which led people to borrow more against their house. While this gap between wages and the cost of housing/living made the average worker more and more in debt the banks were earning more and more profits. This results in an upward redistribution of wealth.
- 6Three global institutions that emerged from the post WWII Bretton Woods conferenceIMF, World Bank (IBRD), WTO(GATT)
- 7Goals and outcomes of the Bretton Woods conference (fixing gold to US dollar, create ‘free’ markets)Establish a system of free trade, free movement of goods, make currency easily convertible, stabilize exchange rates
Fixing of US dollar and gold - 8Keynes’ v White’s vision of the IMFKeynes- expansion and balanced growth of international trade, high levels of employment, real income, stabilize fixed exchange rates, promote currency convertibility, supply emergency loans
White- balance of payment loans, low interest rates, 5 year repayments, conditionalities - 9Voting rights in the IMFQuota system- both voting and loans based on “one dollar one vote”
- 10IBRD/WB lending practices in Europe v Third WorldEurope- directed at reconstruction, grants not loans
Third world- development projects, infrastructure investments, difficult to repay for poorest countries - 11Goals and legal tools of the WTOPromote free trade by eliminating tariffs and subsidies
DRB- closed door panel to challenge laws and regulations of another country on grounds of violating WTO rules,
Need unanimous decision to overturn - 12Goals of the NIEOFree markets would never reduce global inequalities
Argued for improved terms of trade and more just international economic system
OPEC formed producer cartel, control prices of primary commodities for countries dependent on exports - 13How petrodollars shaped capital flows between global north and global southMoney goes to western and northern banks, banks lend to developing countries
- 14Relation between the rise of dictators in the 70’s and lending practicesLoans to third world used as anti-communist containment strategy, rise of dictators pocketing money
- 1580’s as lost decade (in terms of economic growth) for most of Latin America and Africa, parts of Asia are an exception here (remember the waves of industrial growth in Asia that occurred in the 70’s and 80’s, see placing and scaling capitalism in early lecture on uneven developments)Western politicians & bankers worried sheer volume of unpayable loans would undermine world financial system
IMF & WB respond with more loan conditionalities that demand debtor countries restructure how they run their economies - 16Structural Adjustment Programs in the 80’s (debt crisis more loans, more conditionalities more debt)Privatizing state owned enterprises
Reducing public services (healthcare, education, & other social welfare programs) and thus also public employment
Removing subsidies (e.g. for farmers and food)
Devaluing the currency (goal: decrease imports, increase exports)
Reducing barriers to trade (e.g. remove or lower tariffs)
Capital flows south to north, more debt in south - 17Story of dairy industry in Jamaica (see film on Life & Debt)At one time the milk industry was composed of many farmers who produced the milk; however, large organizations imported powdered milk that was subsidized. Through the IMF, with certain restrictions, the local milk was deemed unacceptable and much of it was just drained away. As shipping costs declined, the cost to import dairy became less than it would to produce domestically, taking away domestic dairy jobs.
- 18Use the case of Jamaica to explain the relationship between colonialism and globalization (see lecture on colonialism and globalization as well as film on Life and Debt)When Jamaica gained independence from England ( approx. 1962), they began to 'self-rule' -- a miserable failure. Without the support of England, the country did not have the capital infrastructure and economic strength to develop its economy via increasing exports, reducing imports and attracting global private investment. Within the next decade (1970's) Jamaica was not prepared for the oil price increase which added to its debt. Whatever sources of private banking existed, they abandoned the country.
- 19According to Life & Debt, explain purpose of IFM conditionalities (i.e. what is the intended outcome of making Jamaica devalue their currency) versus the context specific effects of currency devaluationIMF wanted to devalue Jamaica’s currency. Fischer claims that Jamaica needed to expand their exports and diminish their imports and the best way to do that is to make foreign currency more expansive. Dr. Witter explains, because Jamaica’s society is so dependent on imports from foreign countries, that when Jamaica’s currency is devalued, the cost of imports increases for citizens. Ultimately, this means in Jamaica that the economy is more under the control of foreigners because the debt continues to rise and Jamaica’s ability to export is decreasing.
- 20Definition of neoliberalism (mode of governing all aspects of life through market logics)governance of economy, politics, society, environment and ones own biological and psychological self, according to market logistics
- 21Why don’t we know the name?Become so commonplace people just assume the status quo, did not realize there were alternatives
- 22Relation between Neoliberalism and Keynesianism (comes after, actively undoes welfare state and protection of workers’ rights)Blaming Keynesianism for economic crisis in the 70’s (but remember the role petrodollars and US growing deficit from Vietnam War)
Reagan Revolution in the 80s (neoliberal policy implementation in the West!)
The rolling back of the state: comprehensive government control over national economic has been replaced by an emphasis on minimalist government
The interest of business elites have been advanced
Inequalities within populations have become more pervasive across the world
Social institutions and relations – citizenship, education, etc – are becoming marketized
Policies of social redistribution, inclusive healthcare, welfare, and environmental protection have been subordinated - 23When were neoliberal policies first implemented in the developed world?In the 70’s and 80’s
Carter- decreased money supply to address inflation - 24Importance of the state for implementing and protecting “free” market capitalism (How does this create a contradiction or paradox for neoliberalism?)It is state authority via policy changes that has restructured the role of the state to prioritize the interests of global capital
Part of these reason neoliberalism looks so different everywhere is because of the role of the state - 25What neoliberal policies did the Reagan and Thatcher administration implement?Ronald Reagan (1980-1988) – “Reaganomics”
Signed free trade agreements (Canada-United State Free Trade Agreement aka CUFTA)
Crack down on unions (Professional Air Traffic Controllers Organization - PATCO)
Deregulate business (oil and gas, cable television, long-distance phone services, interstate bus services, ocean shipping, and banking)
Cut taxes for the wealthy
Cut taxes for top income bracket from 70% to 28%
Cut taxes for corporations from 48% to 34%
Margaret Thatcher (1979-1990) – “Thatcherism”
Privatized state-owned industries, utilities, and public housing (e.g. British Telecom and British Airways)
Deregulated banking and the city of London’s financial-services industry
Reduced redistributive income taxes
Use of monetary policies (alter money supply and interest rates)
Imposed fiscal austerity in education, health, and welfare spending
Crack down on unions (e.g. National Union of Mineworkers) - 26Neoliberalism is not partisan, how did Clinton also implement neoliberal policies?Expanded CUFTA to Mexico under NAFTA (more free trade, removing barriers to trade)
Signed a 1996 “Personal Responsibility and Work Opportunity Reconciliation Act” that transformed welfare - 27Labor strikes last year were the largest they’ve been since the 80’s Who are the key advocates in the ed reform movement?Public school teachers, state employees
- 28Why were teachers protesting?Protesting low pay & cuts to education spending
public school funding would be diverted to privately run charter schools - 29American style privatization (versus how was K-12 education was envisioned during the 19th century)American style privatization: public funding and private management
In 19th century, K-12 education
Gov’t funded and administered, universal and compulsory
Local and state government (not federal) shape education along with racial segregation
Goals in the context of immigration and industrialization: to educate for democratic citizenship, unify a diverse population, impart general knowledge, prepare for self-sufficiency, & create opportunity for upward mobility - 30What is the relation between vouchers (as a key mode of privatizing education) and segregation?Gov’t provides vouchers for individuals to use at either public, private (non profit and for profit), or religious schools
Logic: low-performing schools would be eliminated via competition
Problem: the poor will still attend the lowest performing schools
Voucher system in Southern schools in 50’s – used to enforce segregation - 31How did K-12 public education spending change under the Reagan administration?“A Nation at Risk” (Reagan administration, 1983)
First step to weakening public schools and teacher unions is to convince the public that public schools are failing
Solution is more standards and more accountability
Bipartisan support
Grows throughout the 90’s
A new approach: student scores as measure of school performance
De/segregation
Integration or desegregation peaked in 1988
Supreme court decisions in 1991, 1992, & 1995 weakened court ordered plans
Re-segregation began immediately (by 2016, 40% of African-American students nationwide were in schools with 90% of more students of color)
Ronald Reagan
Voucher program died in congress
Cut federal gov’t portion of total public education spending from 12% to 6% - 32Which administration provided the first federal funds for charter schools?Bill Clinton
Improving America’s Schools Act (1994): provided federal funds for privately run schools (the emergence of the Charter school) - 33How did the Higher Education Act of 1965 expand public education?During the civil rights era - Higher Education Act (1965)
• Federal student loans, work study programs, and grants that were directly allocated to public institutions for students in need
• Direct support for libraries, historically black colleges, and specialized programs
• States soon followed federal policy making large investments in public college systems
• Public colleges attendance skyrocketed (by 1977, 1/4 Americans had 4yr college degrees) - 34How did the Higher Education Act of 1972 create the first wave of growth in for-profit higher ed?Higher Education Act (1972): Increased ‘student choice’ by directing aid to individual students instead of public institutions
Loans and grants could now be used for public, private, or for-profit higher ed institutions
Devolution of funding to the states states started pulling funding from higher education universities began compensating by hiking tuition (this is key to understanding the rise of the student debt crisis!!) - 35Why did cost of higher ed skyrocket?During the Reagan Era
Moves responsibility for higher education on to the family and cuts direct federal government spending
But actually resulted in increasing student loan lending for-profits exploded - 36Under what administration did the Nunn hearings occur (again, the crackdown on for-profit higher ed abuse was not partisan either)?During the George H W era “crack down”
• Nunn hearings in 1990 (bipartisan) shut down over 1000 for profit higher ed schools
o 1) 85/15 rule
o 2) incentive compensation rule
o 3) the 50/50 rule - 37What is the 50/50 rule?The 50/50 rule prohibited colleges receiving federal student aid from offering more than half their courses or enrolling more than half their students through distance learning programs.
- 38What is the incentive compensation rule?prohibited schools receiving federal financial aid from providing “any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or financial aid” to personnel working in admissions and financial aid. This ban was enacted in response to reports of abusive recruiting practices, in which schools enrolled unqualified students receiving federal student aid. The ban goes so far as to preclude institutions from promoting admissions staff based, in any way, on how many students the staff member successfully recruited. The Department views the ban as a tool for ensuring that admissions officers act as counselors and professionals, rather than members of a sales team.
- 39What loophole did for-profits find in the 85/15 (later 80/10) rule?Why do for-profit colleges target service members and veterans with particularly aggressive and deceptive marketing and recruiting?
Because of a loophole in federal law that the for-profit colleges manipulate to use GI Bill dollars & Defense Department Tuition Assistance to offset a cap on federal student aid the schools otherwise face. As Holly Petraeus, head of service member affairs at the US Consumer Financial Protection Bureau, has explained:
"Put simply, the rule says that a for-profit college must obtain at least 10 percent of its revenue from a source other than Title IV education funds, the primary source of federal student aid. Funds from Tuition Assistance and the G.I. Bill are not defined as Title IV funds, so they count toward the 10 percent requirement, just like private sources of financing. - 40How much is student loan debt today?$1.5 trillion
- 41Drawing on the similarities and differences across all four articles, how does the case of New Orleans illustrate the arguments for and against transforming education into a marketplace?The first article makes the argument that the devolution of authority creates more autonomy for the school leaders and allows them to more creatively and efficiently run their schools and design curriculum plans. It is also easy to replace low performing teachers due to the lack of tenure compared to public schools. The second article provides metrics supporting these arguments, with rising test scores and graduation rates as well as lower dropout rates. The third article argues against the charter school system, saying that the school system cannot be operated within an open market, leaving certain schools behind. Staff also has little incentive to work hard with no job security and the same low pay as normal public school jobs. The fourth article echoes this sentiment, with an emphasis on the profit-seekers taking advantage of the destroyed community post-Katrina.
- 42Examples of ethical consumption: purchasing organic foods, fair trade goods, and environmentally friendly products, green and socially responsible tourism, the purchase and use of second-hand goods, the procurement of locally produced goods, ethical banking, and consumer boycotts of specific commodities and brands.
- 43Explain how consumer forms of global citizenship are being actively promoted by companies. Why do critics argue that this leads to the commodification of social justice? (Use either the Nike ad, the Dove ad, the Always ad, or the Cover Girl ad as an example)Advertising for racial equality
Market-based solutions make money for Nike
• Nikes shares surged 30% after Ad
Does not address the labor conditions of Nike products and role of TNCs in system of oppression
Redirects attention from the the role of the state as both problem and site of solutions
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