The U.S. Economy in the Inner War Period From BOOM to BUST (1920-1941)

Impact of WWI on the Americas Our next major topic of study is “The Move to Global War” which focuses on the rise of dictators and their aggressive actions in the Inner-War period. In order to understand the global political/economic shift between the two world wars, we need to study the post- WWI economies of the U.S., Canada, and Latin America. Context

Post-WWI, the U. S. experienced an economic “boom. ” Why Post-WWI, the U.S. experienced an economic “boom.” Why? What contributed to the growth of the U.S. economy? List as many reasons as possible! Partner Discussion

Review 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!

U.S. Economy Post-WWI U.S. Economy POST-WWI 1920’s America saw a dramatic change in business and industry; including: New industries (mass production) Higher wages Better working conditions More corporations Consumerism (credit!) Foreign Investment

Canadian Economy post-WWI Canada’s Economy Pre-WWI: dependent on imports from Britain. War accelerated Canadian manufacturing Post-WWI: Britain in debt  U.S. is the new world economic leader Increased investment in Canada Trade with U.S. increased (ex: 75% of all paper produced was exported to U.S.) By the mid-1920’s the Canadian economy boomed

U.S. and Canadian Relations Canadians happy with U.S. investments Little consideration of long-term consequences Canadian economy based on Primary Industries (raw materials – mining, lumber, fish, etc.) U.S. became major buyer U.S. and Canadian Relations

Timber: Quebec City

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 EX: Car Companies (GM, Ford, Chrysler) replaced all Canadian car makers…. And did not pay a tax in Canada) U.S. Investment in Canada

Current U.S. Branch Plants in Canada General Motors Canada, Canada's largest automotive manufacturer, Canadian owned by Detroit-based, General Motors Wal-Mart Canada, wholly owned by Wal-Mart of the US Ford Motor Company of Canada, owned by the American Ford company Imperial Oil, controlled by ExxonMobil, which owns 69.8% of its stock. Ultramar fuels, owned by US-based Valero Costco, whose Canadian operations are the 7th largest private company, is based in Seattle Sears Canada, one of the largest retailers, controlled by the US Sears Holdings Corporation IBM Canada, owned by IBM Safeway Canada supermarkets, owned by Safeway Inc. McDonald's Canada, owned by McDonald's Pratt & Whitney Canada owned by US United Technologies Corporation

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 Modern Canadian cities formed at this time (Vancouver, Toronto, Ottawa, Montreal) Problems brought on by urbanization: slums, poverty, pollution

LA Economy prior to Great Depression Pre-WWI: Agriculturally-based Beef, wheat, tropical fruits, minerals (copper), and natural resources Post-WWI: Some attempt at diversifying econ. Europe and US focused on production & manufacturing = needed to import agricultural goods for their growing populations Set up a system of dual reliance on the export-import trade: LA depended on export of resources for income, but also relied on foreign imports for industrial goods. Trade relations increase as U.S. economy booms! Latin American Economies

The Century, America’s Time: From “boom” to “bust!” You will now watch Part I of the video lesson on the inner-war economy! Take notes on the worksheet! The Century, America’s Time: From “boom” to “bust!”

Review: Why did the U.S. vote against ratification of the Treaty of Versailles?

BLOCK 1 (1/29-30)

Post-WWI U.S. Economy From boom to bust

How does the banking system work? https://www.youtube.com/watch?v=fTTGALaRZoc How does the banking system work?

These results of the Great Crash triggered the most severe economic downturn in history. The Great Depression: lasted from 1929 until the U.S. entered WWII in 1941.

If the Great Depression started in the U. S If the Great Depression started in the U.S., how did this become a global economic depression?

Impact on the World Countries in the Americas and Europe depended on the U.S. markets for goods, investments and loans. Global economic system crumbled. U.S. couldn’t invest in European/American goods  Stop providing loans  German banks failed  suspended reparation payments  Allies stopped paying debts  Industrial production fell = FAILURE OF GLOBAL ECONOMY!

The Century, America’s Time: Stormy Weather You will now watch part II of the video lesson which focuses on the causes/effects of the Great Depression. Take notes on your worksheet! The Century, America’s Time: Stormy Weather