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

2. 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

3. 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

4. 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!

5. 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

7. 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

8. 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

9. Timber: Quebec City

10. 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

12. 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

13. 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

15. 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

18. 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!”

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

20. BLOCK 1 (1/29-30)

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

22. How does the banking system work?
How does the banking system work?

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

24. 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?

25. 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!

29. 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