BELLWORK

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BELLWORK

1. During the war, Great Britain and the U.S.
   invested a lot of money in Latin America. What
   was this money used for?
2. What was Latin Americas major role in the global
   economy?
3. List five reasons why Latin America went into a
   recession following the outbreak of WWI.
4. Describe The Tragic Week.
5. How did Latin Americas economy change post-WWI?

• 6. THINKER At the Pan American Financial
  Conference in 1915, the U.S. made the point that
  the outbreak of war highlighted the problem of
  relying on European countries economically and
  suggested that a more hemispheric approach was
  desirable. What do you think the U.S. means by
  this? If they want economic influence in the
  region, would this create the same problems as
  European influence?

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Discussion

• Now that you know how WWI effected Latin
  Americas economy, make a prediction ? What do
  you think happened to the Canadian and U.S.
  economies post-WWI?
• The U.S. came out of WWI a wealthy nation, while
  Britain was in debt! This change in economic
  power heavily effected the dependency of the
  Americas on the U.S. economy!

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Canadian Economy post-WWI

• Pre-WWI dependent on imports from Britain.
• Due to wartime demand and the decline of British
  imports, textile and chemical production
  expanded.
• War accelerated Canadian manufacturing
• Canada went through a similar recession as Latin
  America immediately after war
• By the mid-1920s the Canadian economy boomed,
  mostly due to trade with the U.S.

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Canadian Economy Post-WWI

• Pre-WWI Traded primarily with Britain
• Post-WWI
• Britain in debt
• U.S. is the new world economic leader
• U.S. investment in Canada increased
• Trade with U.S. increased (ex 75 of all paper
  produced was exported to U.S.)

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Canadian Economy Post-WWI

• Mid-1920s Recovery!
• Wheat was important export
• Huge growth in exploitation of natural resources
• Paper mills
• Mining
• Forestry

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U.S. and Canadian Relations

• Instead of lending money to Canada (like Britain
  did).. U.S. investors set up Branch Plants in
  Canada
• Branch Plant businesses owned controlled by
  U.S. companies, but operated in Canada
• Benefit for the U.S. they did not have to pay
  taxes to import products into Canada. Because
  these products were produced in Canada
• EX Car Companies (GM, Ford, Chrysler) replaced
  all Canadian car makers. And did not pay a tax
  in Canada)

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U.S. and Canadian Relations

• Canadians happy with U.S. investments
• No one really considered long-term consequences
• Canadian economy based on Primary Industries (raw
  materials mining, lumber, fish, etc.)
• U.S. used these raw materials to make new products

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Timber Quebec City
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To transport goods, the Canadian government
expanded the railroad(British Columbia)
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Urbanization of Canada

• The growing economy industries caused more
  people to move to the cities for jobs
• Huge wave of immigration post-WWI to Canada
• Less labor needed in agriculture (replaced by
  machinery)
• Modern Canadian cities formed at this time
  (Vancouver, Toronto, Ottawa, Montreal)
• Problems brought on by urbanization slums,
  poverty, pollution

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Discussion

• Compare/contrast the post-WWI economies of Canada
  and Latin America.
• How do you think the changes in the Canadian
  economy effected their status as a British
  dominion/commonwealth?

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America the Story of Us Boom

• This episode focuses on the boom of the U.S.
  economy post-WWI.
• As we watch, take notes on how the economy
  changed and why!!!
• Be ready to discuss Monday!

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U.S. Economy Post-WWI

• 1920s America saw a dramatic change in business
  and industry including
• New industries
• Higher wages
• Better working conditions
• More corporations

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Americans as Consumers

• In the 1920s Americas standard of living
  improved as necessities and luxuries were more
  affordable.
• Higher wages and buying on credit contributed to
  this trend.
• Products were mass produced
• This concept of mass production was started by
  Henry Ford.

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Henry Ford

• He was one of the first industrialists to act on
  the realization that each worker is also a
  consumer.
• In an era where 2 a day was considered a good
  pay, Ford paid his workers 5
• Reduced the workweek at his plant from a 48-hour,
  6-day week to a 40-hour, 5-day week.
• Ford was able to do this because his methods of
  production made tremendous profits.
  (264,000/day)
• He was the first to use the assembly line to mass
  produce his Model-T cars.

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MODEL-T
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Assembly Line

• A method of mass production in which every
  employee has a specific task.
• With the assembly line, workers with fewer skills
  were able to operate specialized machines
  designated for specific tasks.

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Automobiles Effect on America

• The car defined the U.S. in the 1920s.
• IN 1927, Americans owned 4 out of 5 of the
  worlds cars, averaging 1 car for every 5.3
  persons.
• The Model-T transformed the car to an item
  moderate-income families could afford.
• The booming automobile industry created a rise in
  other industries steel, gasoline, glass, rubber,
  garages, restaurants, tourism, and camps.
• At the end of WWI, the U.S. had only 7,000 miles
  of roads. By 1927, U.S. had 50,000 miles.

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Consumerism

• Consumerism increasing consumption of goods is
  economically desirable
• Contributors to consumerism
• Radio
• Advertising
• High Wages
• Buying on Credit

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Discussion

• As you know, the U.S. became the worlds leading
  creditor post-WWI. The advantages of this
  reliance on the US economy contributed to
  significant growth, but make a predication ? What
  could go wrong with this system?

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Discussion

• Compare/contrast the post-WWI economies of Latin
  America, Canada, and the United States.