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What is the gold standard for the white house’s students?

President Trump’s tough talk on trade and the tariffs he recently imposed on imported washing machines and solar panels, as well as the ones he threatened on foreign steel and aluminum, would seem straight out of the populist playbook. But in terms of targeting the real grievances of his popular base, they largely miss the mark.

The early history of American populism, culminating in the New Deal, suggests a more productive and less damaging kind of populism. When populism succeeds, it does so not by cosmetic gimmicks but by going after the roots of economic injustice directly.

At the 1896 Democratic National Convention, the 36-year-old former Nebraska congressman William Jennings Bryan delivered what became one of the most famous lines of American political oratory: “You shall not crucify mankind upon a cross of gold.” Bryan’s immediate target was the gold standard, an emblem of the globalization of his day, which he blamed for the economic difficulties of what he called the “toiling masses.” Bryan ran for president that year as the joint candidate of the Democratic Party and of the People’s Party, also known as the Populist Party.

The populists of the late 19th century had many grievances, but the flames of their discontent were fanned by opposition to economic globalization. Under the gold standard, markets for money, goods, capital and labor had become intertwined among nations as never before. As John Maynard Keynes would later rue, a well-to-do inhabitant in a major capital city like London “could order by telephone, sipping his morning tea in bed, the various products of the whole earth.”

Global competition also drove American agricultural prices down.

And the rules of the gold standard enforced tight money and credit conditions — what we would today call austerity policies. The consequent economic distress among farmers in the South and the West fueled the populist movement. The populists viewed the railroads as well as the financial and commercial interests of the Northeast, the defenders of the gold standard, as their main opponents. Throwing off the shackles of the gold standard and reclaiming national monetary sovereignty became their rallying cry.

Populism in the 21st century is as much a reaction to globalization as its late-19th-century version. While the backlash in the United States and Europe differs in specific details, the broad outlines are similar. Large segments of the workers in these advanced economies — older, less-skilled manufacturing employees and the communities they live in — have seen their earnings decline or stagnate and their relative social status take a big hit. These groups see governments as increasingly in the pocket of financial and business elites, the big winners of globalization. The discontent in turn fuels populist leaders who promise to wrest control from faceless global market forces and re-empower the nation-state.

The populist backlash unleashed by advanced stages of economic globalization should not have been a surprise, least of all to economists. The warning signs are right there in the basic economic theory we teach in the classroom. Yes, globalization expands economic opportunities: There are gains from trade. But globalization also entails stark distributional consequences, with some groups almost always left worse off. Factory closings, job displacement and offshoring are the flip side of the gains from trade.

What is more, these redistributive effects loom larger relative to the overall economic gains as globalization advances and trade agreements begin to aim at less consequential barriers. In other words, in its late stages, globalization looks less and less as if it is expanding the overall economic pie and more and more as though it is simply taking money from some groups and giving it to others.

In principle, an active government can take the edge off the resentment produced by redistribution. In Western Europe, an extensive welfare state has historically provided the safety nets that in turn enabled levels of economic openness that are much higher than in the United States. But often the response of the government has been to plead incapacity in the face of inexorable global economic realities: “We cannot tax the winners — the wealthy investors, financiers and skilled professionals — because they are footloose and they would move to other countries.” This reinforces populists’ yearning to reassert national economic control.

William Jennings Bryan ultimately failed in his quest for the presidency, and the People’s Party imploded because of regional and ideological divisions. But many of the Populists’ economic ideas, such as the progressive income tax, regulations on big business and much greater government control of the economy, were absorbed by the progressive movement and became part of the political mainstream.

It wasn’t until 1933 that the Populists’ main plank, the end of the gold standard, was adopted. By then the United States was mired in the Great Depression, and Franklin D. Roosevelt had decided the economy needed the monetary boost that adherence to the gold standard precluded. Internationalists complained that Roosevelt acted unilaterally, but he had little patience with orthodox economic ideas or shackles — foreign or domestic — on his conduct of economic policy. At home, he had to fight conservative courts to put his New Deal reforms in place.

By his day’s standards, and perhaps also today’s, Roosevelt was an economic populist. But the New Deal reinvigorated the market economy and saved capitalism from itself. It may also have saved democracy, as it helped staved off the dangerous demagogues and chauvinist ideologues, of which there were plenty (such as Father Coughlin and Huey Long).

The lesson of history is not only that globalization and the populist backlash are tightly linked. It is also that the bad kind of populism spawned by globalization may require a good kind of populism to fend it off.

President Trump and his European counterparts have capitalized on the economic difficulties of the middle and lower-middle classes by wrapping them in narratives that exploit prevailing ethno-nationalist prejudices. In the United States, they attribute declining wages and job prospects to Mexican immigrants, Chinese exporters and the federal government’s preoccupation with minority groups at the expense of the white middle class. In Europe, they lay the blame for the erosion of the welfare state and public services on competition from immigrants and refugees. But none of this really helps the middle and lower-middle classes. Worse, the illiberal politics of the strategy undermines democracy.

If our economic rules empower corporations and financial interests excessively, then the correct response is to rewrite those rules — at home as well as abroad. If trade agreements serve mainly to reshuffle income to capital and corporations, the answer is to rebalance them to make them friendlier to labor and society at large. If governments feel themselves like in essay structure : powerless to institute the tax policies and regulations needed to address the dislocations caused by economic and technological shocks, the solution is not just to seek more national autonomy but also to deploy it toward such reforms.

A populism of this kind can seem like a frontal attack on the economic sacred cows of the day — just as earlier waves of American populism were. But it is an honest populism that stands a chance of achieving its stated objectives, without harming fundamental democratic norms of tolerance and equal citizenship.

the gold standard

The Gold Standard

Prior to World War 1 the classic gold standard model was used as a common basis used to establish a currency system.  Gold was used as the basis of establishing the value for common currencies such as the British pound, German mark, and the United States dollar.  For example, the US dollar was equal to the value of one twentieth of an ounce of gold and the pound sterling was closer to one-quarter of an ounce of gold.  The exchange rate between currencies was then a matter of comparing the ratio of equivalent weights of gold that each currency represented.

Using gold as the basis of currency at that time allowed the governments of those currencies and banks to redeem all money in gold coin on demand.  This allowed the general public to use gold coin or bullion when conducting their everyday purchasing transactions.  As business and personal credit lines were provided by the banking institutions, the gold standard placed harsh limits to help prevent overuse of banking leverage since the holder of the currency had the rights to redeem the liability that they owned at any time.

This created concerns however if a country such as the United States, for example, was to create new dollar bills, thereby inflating the supply of dollars, this would have the effect of increasing or inflating the cost of United States goods.  This would have the effect of reducing their competitive edge against the importing of goods from other currencies.

It became common practice for the US government to print more paper money to provide more credit during a period that led to only small price increases within the USA economy.  In effect, the USA was in effect exporting their inflation to other countries as other countries would adjust their currency exchange to the dollar rather than adjusting their currency to gold.

This gold standard currency and inflation squeeze led to the Bretton Woods system for managing the money system between currencies of independent countries.  The Bretton Woods conference was attended by 44 countries to establish the agreement to provide a methodology for managing the international monetary system.

In the early 1970’s, other countries became increasingly concerned with the ability of United States to reduce their budget and trim the trade deficits that were rapidly increasing.  On August 15, 1971 President Nixon effectively took the USA off of the gold standard by executive order.  This order essentially made the dollar non-convertible to gold in the direct exchange.
This executive order by President Nixon effectively created a dollar currency that was a fiat currency, in that it was not backed by gold or any other tangible basis other than the backing of the USA’s treasury and the Federal Reserve.

This led to renewed discussion in 2012 after the worldwide recession beginning in 2008 for adoption of a new world currency system.  Additional vehicles for financial investment of precious metals were common in 2012 including gold IRA’s as a popular means for the average USA investor to minimize the impacts that the dollar inflation was having on their retirement investment portfolio.  This has become one of the best investments in 2014 and in the foreseeable future.

food helps students

How food helps students to pass exams?

It is a good question for every student. How food helps students to pass their exams? Do I need to eat something before the exams and essay writing or it is better to do on empty stomach? Students of the University of UCLA made some tests, where showed how does the food influence on the brain activity, after consuming.

food helps students

In the short, we can bold some of the aspects scientists made.

  1. Do not cut the carbs. Easy carbohydrates help to the brain working faster and react to all problems and questions, which may arise due essay composing or coursework consolidating.
  2.  Do eat full-fat food. All meat, which made with fat reduced methods, are not as much health as the original one. Because of thermal and physical influence on the food, it looses required amount of proteins, minerals and so on. So try to eat original food.
  3. We shouldn’t eat like ancestors. Our ancestors consumed food and cooked it not very well, sometimes they didn’t cook it all. As a result, most of them had diseases, because of batteries they had in the food they got. Especially if we are talking about the meat and so on.
  4.  Red meat is a good source of proteins and micro-elements. Actually, it has some of it, but batteries, which are still alive because of the lack of cooking will definitely won’t help in the writing of such required essay on the time. There is a big chance that you will spend rest of the night in the toilet, rather with books to write your work.  Does in this way food helps students? Sure no.
  5. Well-balanced diet has all that is needed for your organism. It is a huge myth. The principle of any diet is to cut calories and required nutrients to your body. As a result, there could be some luck of vitamins, which may follow if not to diseases, but for a headache and low energy of the students is definitely.
  6. Alcohol definitely is not helping in composing an essay, but it may help for some organs of your body, for examples, for the liver. Red wine may have a good effect and restore some of the damaged cells of the undergraduate students.
  7.  Despite the fact, that some say that coffee is unhealthy. We may say with sure, all that is within the limits, won’t hurt so much, especially if we are talking about such drink as a coffee.  Scientists proved that no more than 3 cups of coffees every day improve students mental work and concentration significantly.
  8.  Actually, if you still looking for engaging tips on starting your essay, which may influence on your final mark. You shouldn’t eat much calcium. Not only because huge consumption of such mineral won’t help you to concentrate on your essay work. But if you exceed the daily dosage, it may harm your bones.

Actually, not all the facts mentioned by the scientists are proved and keep as theory, we still should take care about what we eat, and what food helps students to keep them energized.

So together with our student’s group, we will keep it in mind and will follow all news.

ucla students traveling

Summer trip for students

Most of the students are looking where to have a rest for students after the semester of hard work, examinations, and thesis. Because of it, we organized one of the most exciting trips to the Europe.

ucla students traveling

First of all, we are planning to visit together with UCLA Students, 7 Europe countries.

  • France
  • Spain
  • Germany
  • Sweden
  • Russia
  • Italy
  • Norway

Why these countries? Because most of them represent all the treasure of the history on the planet. Some offer old writings on the walls, others detailed information about humanity.

Not only the history is important for the students of UCLA, but the present and future.

Because of it, we made as well as the map for the historical places, tourist map for students where will be shown most exciting places in the countries.

There is no doubt, that leader in France is the capital Paris where Eifel tower is head of all sights. After UCLA students travel the tower, they can follow to the most popular museum of art in the world. Louvre museum. Where many arts from the top artists in the world.

After that students together with tutors will go to the Spain, where will visit the hottest ocean in the world in Barcelona, where are a lot of beautiful young students having fun and are happy to communicate with students from abroad, especially from the United States.  Such meetings will help to understand Europe people better.

Few daying spending in such beautiful place like Barcelona will bring UCLA students traight forward to the Germany. Berlin is one of the most freedom capitals around the world. There are plenty people thinking different. Having their own opinion about the world, may bring to our undergraduatates new ideas in their studies.

Going forward to the North – Sweden and Norway, our university will see, how people live in such beautiful and cold countries, and why their food cost ten times more , then hours. It will be a good lesson, why economic should be not the strong only, but and smart as well.

Going back to the Russia, we will see the most friendly and opened people, who don’t smile to everyone and in most cases are rude. but their character is nothing with their kindness and will to help to other. Russia will teach our students how to love, not only with brain but and with heart.

And finally, we will go to the Italy, where we can taste the delicious food and get a good sun shine to gather some vitamin D and feel great.