1. U.S. E CONOMIC I MPERIALISM Section 3 Ch. 28

2. Colonial Legacy in Latin America  Pre and post-independence Latin America operated under a system called peonage.  Under this system, wealthy landowners paid their workers in vouchers which were only good at the landowners stores.  Wages remained low and prices for goods high so many workers went into debt and stayed there.

3. Post Independence LA  Newly formed governments confiscated lands from natives and the Catholic Church.  To raise money, they sold these lands to the only people who could afford them; the already wealthy landowners.

4. Political Instability  After independence many military dictators (caudillos) ruled these new countries unopposed.  They were backed by the military and supported by landowners who feared losing their wealth and status.

5. Latin American Economies  Dependent on one or two products, LA was dependent upon Europe and the U.S. to import manufactured goods into their countries.  With the invention of steamships, railroads, and refrigeration, LA, began to export more.

6. LA Economies  LA also used little of their export money to build roads, schools, or hospitals.  They didn’t fund anything that would make them self-sufficient.  Instead, they received high percentage loans from Euro and the U.S.

7. The Monroe Doctrine  In 1823 U.S. President James Monroe issued the Monroe Doctrine  It states that “the American continents…are henceforth not to be considered as subjects for future colonization by any European powers.”

11. Cuba Declares Independence  Cuba first declared independence in 1868 and fought a ten-year war, which they lost.  In 1895, Cuban writer Jose Marti, returned to Cuba to launch a second war.  Because of economic interests and Spanish brutality, the Americans joined the war on the Cuban’s side in 1898.  The Spanish-American War lasted about four months.

12. The Spanish-American War  The U.S. launched its first attack on the Philippine Islands.  The Spanish were not prepared to fight a two front war and quickly lost.  Spain lost the last of its colonies to the U.S. (Puerto Rico, Guam, and the Philippines)  In 1901, Cuba became independent, but was still under control of a U.S. military government.

15. The Panama Canal  The U.S. became interested in building a canal b/c the cost of traveling from coast to coast was too expensive.  President Theodore Roosevelt (1901-1909) offered Colombia $10 million to build a canal in Panama.  Colombia demanded more money so the U.S. responded by encouraging a revolution in Panama.

17. The Panama Canal  In 1903, with help from the U.S. Navy, Panama won its independence.  Construction lasted from 1904 to 1914 and the canal quickly became a crossroads for world trade.

22. The Roosevelt Corollary  To protect its economic interests in Central and South America, President Roosevelt issued an extension (corollary) to the Monroe Doctrine.  The Roosevelt Corollary gave the U.S. the right to be “an international police power” in the Western Hemisphere.