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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? 2. What was Latin America’s major role in the global economy? 3. List five reasons why Latin America went into a recession following the outbreak of WWI. 4. Describe “The Tragic Week.” 5. 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 1.During the war, Great Britain and the U.S. invested a lot of money in Latin America. What was this money used for? 2.What was Latin America’s

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Page 1: 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? 2.What was Latin America’s

BELLWORK1. During the war, Great Britain

and the U.S. invested a lot of money in Latin America. What was this money used for?

2. What was Latin America’s major role in the global economy?

3. List five reasons why Latin America went into a recession following the outbreak of WWI.

4. Describe “The Tragic Week.”5. 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?

Page 2: 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? 2.What was Latin America’s

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!

Page 3: 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? 2.What was Latin America’s

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.

Page 4: 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? 2.What was Latin America’s

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.)

Page 5: 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? 2.What was Latin America’s

Canadian Economy Post-WWI

• Mid-1920’s: Recovery!

• Wheat was important export

• Huge growth in exploitation of natural resources– Paper mills– Mining– Forestry

Page 6: 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? 2.What was Latin America’s

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)

Page 7: 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? 2.What was Latin America’s
Page 8: 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? 2.What was Latin America’s

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

Page 9: 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? 2.What was Latin America’s

Timber: Quebec City

Page 10: 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? 2.What was Latin America’s

To transport goods, the Canadian

government expanded the

railroad(British

Columbia)

Page 11: 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? 2.What was Latin America’s

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

Page 12: 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? 2.What was Latin America’s
Page 13: 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? 2.What was Latin America’s

Discussion

• How do you think the changes in the Canadian economy effected their status as a Canadian dominion/commonwealth?

Page 14: 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? 2.What was Latin America’s

U.S. Economy Post-WWI

• 1920’s America saw a dramatic change in business and industry; including:– New industries– Higher wages– Better working

conditions– More corporations

Page 15: 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? 2.What was Latin America’s

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.

Page 16: 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? 2.What was Latin America’s
Page 17: 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? 2.What was Latin America’s

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.

Page 18: 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? 2.What was Latin America’s
Page 20: 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? 2.What was Latin America’s

MODEL-T

Page 22: 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? 2.What was Latin America’s

Assembly Line• 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.

Page 23: 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? 2.What was Latin America’s

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.

Page 26: 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? 2.What was Latin America’s

Consumerism

• Consumerism: increasing consumption of goods is economically desirable

• Contributors to consumerism:– Radio– Advertising– High Wages– Buying on Credit

Page 27: 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? 2.What was Latin America’s

Discussion• Compare/contrast the post-WWI

economies of Latin America, Canada, and the United States.