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? What was Latin America’s major role in the global economy? List five reasons why Latin America went into a recession following the outbreak of WWI. Describe “The Tragic Week.” How did Latin America’s 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? BELLWORK

2. Discussion • Now that you know how WWI effected Latin America’s 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!

3. 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-1920’s the Canadian economy boomed, mostly due to trade with the U.S.

4. 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.)

5. Mid-1920’s: Recovery! Wheat was important export Huge growth in exploitation of natural resources Paper mills Mining Forestry Canadian Economy Post-WWI

6. 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)

8. 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

9. Timber: Quebec City

10. To transport goods, the Canadian government expanded the railroad(British Columbia)

11. 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

13. 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?

14. 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!

15. 1920’s America saw a dramatic change in business and industry; including: New industries Higher wages Better working conditions More corporations U.S. Economy Post-WWI

16. Americans as Consumers • In the 1920’s America’s 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.

18. 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.

21. MODEL-T

23. 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. Assembly Line

24. Automobile’s Effect on America • The car defined the U.S. in the 1920’s. • IN 1927, Americans owned 4 out of 5 of the world’s 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.

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

28. Discussion • As you know, the U.S. became the world’s 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?

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