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� ��

SKILL:�HIPP

Explain the continuities and changes in the global economy from 1900 to the present.

9.4 D. ECN

A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand.

VIDEO #1

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What we will learn:

Examine the influence and the impact of the free market system on geopolitics.

We will practice how to write each of the HIPP elements as it would be presented on the DBQ essay.

What we will do:

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Skill Introduction: Sourcing

H.I.P.P.

3 documents

Complexity

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Global Economics Shifts Since 1492

Three phases since Europe got into the global mix.

Mercantilism

South American: Silver

Capitalism

ADAM SMITH

New Class System

Globalization

Mercantilism: 1450-1750Capitalism: 1750-1900�Globalization: 1900-present

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Mercantilism: 1450-1750

Used by European rulers (monarchs) to consolidate wealth from distant lands.

Colonialism

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Capitalism: 1750-1900

Laissez-faire Capitalism

Adam Smith

Imperialism

Karl Marx

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Keynesian Economics: 1930-1980

Keynes advocated for increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression.

The American people after the Great Depression

Federal Government

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Neo-liberalization (Return to Free Market)�1980-Present

Turn away from Keynes:�- Reduce inflation�- Reduce tax rates�- Reduce the size of government�- Reduce regulation on business

Ronald Reagan�U.S. President

Margaret Thatcher�British Prime Minister

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Let’s Practice: Sourcing

After the death of Mao Zedong in 1976, Deng Xiaoping emerged as his country’s leader. He was acclaimed as a reformer who resisted rigid Communist ideology, introduced elements of free enterprise, and helped restore stability and economic growth..

Speech to Japanese Delegation, 1984

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Source: Deng Xiaoping, speech given to the Japanese Delegation, June 30, 1984

The present world is open. One important reason for China's backwardness after the West’s industrial revolution was its isolation from the world. After the founding of Communist China we were blockaded by others, so the country remained virtually closed, which was not good. The experience of the past thirty years has demonstrated that a closed-door policy would hinder construction and inhibit development. We are suggesting that we should develop rapidly. To do this, we will open 14 large and medium-sized coastal cities.

Our socialist economic base is so huge that it can absorb tens and hundreds of billions of dollars' worth of foreign funds without being shaken. Foreign investment will doubtless serve as a major supplement in the building of socialism in our country. And as things stand now, that supplement is indispensable. Naturally, some problems will arise in the wake of foreign investment. But its negative impact will be far less significant than the positive use we can make of it to accelerate our development. It may entail a slight risk, but not much.

H.I.P.P.: Historical Situation, Intended Audience, Puropese, & P.O.V.

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Sourcing → H.I.P.P.

Term

Definition

Example: From Source

Historical �Situation

How the time & place influenced the ‘source’.

- 1984, ending of the Cold War, China�- Many gov’t of the time (end of Cold War) adopting free market policies.

Intended �Audience

Who was being addressed and what is the speaker's intentions?

- Speech to Japanese Delegation, 1984.�- Acknowledges Communist China’s past failures and plans to reopen to the world

Puropese

What is source hoping to accomplish

- “Foreign investment will serve as a major supplement…”�- Attempt to better the relationship by investing in one another.

P.O.V.

What is the specific POV of the author & why does the author have this viewpoint?

- Deng Xiaoping, leader of Communist China�- Presided over major overhaul of communist/socialist system to a more free market system.

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TAKEAWAYS

Learning Objective:

  • Explain the continuities and changes in the global economy from 1900 to the present.

Sourcing: HIPP

1. Must do three times on DBQ

2. Never choose one HIPP for all three�3. Identify & explain when you HIPP

1. Free Market/Liberalization of the Economy.�

2. Deng Xiaoping’s Chinese reforms