Causes of the Great Depression! 1.Dominance of the Coffee Oligarchy of Sao Paulo and Minas Gerias- a)Constitution of 1890 b)undermined the growth of.

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Causes of the Great Depression! 1.Dominance of the Coffee Oligarchy of Sao Paulo and Minas Gerias- a)Constitution of 1890 b)undermined the growth of industry c)instituted policies that squashed social and economic forces d)The Presidential succession. e)Economic Dominance of Sao Paulo 2.Political Crisis in 1920s showed some of the problems with the “democracy”. a) Tennetes b)Challenge to the coffee oligarchy

Causes of the Great Depression 1.Economic Development a.Finance Industry b.National Debt c.Sugar to coffee. d.Regional economies built around exports. e.No diversification in the economy. f.Defense of coffee a.Valorization b.Controlling production policies c.The price supports induced huge overproduction

Causes of the Great Depression Economic Development- continued a.Foreign Dependence a.By 1930 the foreign loans were 1 billion and 200 million annually. b.Economic and social neglect a.Industries geared toward the internal market b.Majority of the population c.Lack of economic infrastructure d.Feudal system c.Land ownership: 461 land owners held more than 27 million hectares of land, While 464,000 owned 15.7 million acres d.Poor agricultural practices led to declining crops- a.Slash and burn methods b.Used hoes and other hand techniques with no mechanization

The Depression and Revolution Mendes Fradiqu once noted “The twenty states of Brazil are two: Sao Paulo and Minas Gerius.” 1.Two Major shifts that led to political and economic upheaval. a)Political Error: Washington Luis made the political error of selecting another Paulista as his successor, Sao Paulo had lost much of its support. a)The politicians of Minas Gerais were no longer in alliance. b)The non-coffee states protested that another coffee interest president would rule. c)Getulio Vargas ran against Julio Prestes. d)Military stepped in and deposed the hand picked supporter Prestes. Put Vargas in control as a interim president. a)Like the Red Sox and Yankees

The Depression and Revolution b)Wall street Crash of )How many of your families buy as many lattes as they did before the current depression? 2)Coffee Prices- collapsed 3)inflation was rampant and had no ability to borrow money. 4)Ability to import collapsed 1)coffee income provided most of Brazil’s foreign exchange needed for imports and to service the foreign debt.