Chapter 9 Flashcards
Economic Globalization
the increasing spread of trade, transport and communication systems around the world in the interest of promoting worldwide commerce
MAIN
Militarism
Alliances
Imperialism
Nationalism
Cost of WWI
•Britain, France, and Russia against Germany and Austria-Hungary
•The economic cost of the war were also high
•European cities, towns, ports, ships, and railways (infrastructure) had been destroyed
•Significant decrease in production of goods
•High unemployment rate
Treaty of Versailles
•Supposed to drive peace and prevent another global war
•Reparation: the act of making amends for wrongdoings, may include payments made by a defeated enemy to countries whose territory was damaged during a war
•John Maynard Keynes:
-Member of the British delegation
-Said that crippling Germany and Austria with war debts with starve the people, and guarantee another major war
Effects of WWI on Canada
•Costed $2.5 million/day - income tax temporary introduced
•During war a shortage of labour
•Unemployment rose
•Interest payments on countries more debt total $164 million a year and soldiers pensions cost another $76 million a year (income tax becomes a permanent feature)
Russian Revolution
•Ruled by Czar Nicholas II
•Peasants lived difficult lives under agent economic system
•Want to change so Nicolas II was forced to give up his throne
•The union of Soviet Specialist Republics emerged out of the former Russia (the world’s first communist state under Lenin)
Communism
•A new economic and political model that was supposed to get rid of class distinctions (opposition to capitalism)
•Stalin: made Soviet union into an industrial in military giant. Forest work, collective farms
•Soviet union became a one party state (dictatorship)
-Gave ways to many restrictions and oppression on the Soviet people
The Great Depression
•Black Tuesday (October 29, 1929): stock market crashed, started a chain reaction
-Result: people who lost money could no longer pay bills
•Gradually the entire world moved into an economic depression
Depression in Canada
•Between 1929 and 1933, Canadian exports fell by 50%
•By 1933, 2.6% of Canadians were out of work
•A drought that started in 1928 continue often on and off until 1937
WWII
•Germany hit hard by depression
•Adolf Hitler and the Nazi party promise to fix things
•Hitler convinced many Germans that they belong to a master race that was entitled to rule other people
•Took over at that Rhineland, Austria, Czechoslovakia
•September 1, 1939, Hitler invaded Poland
-In response, Britain, France, Australia, New Zealand, and Canada declared war (US entered on the sides of the allies after Japan attack Pearl Harbour)
-More than 50 countries in colonies were drawn into war
-More than 60 million people civilians in military died
WWII - Canada
•About 42,000 Canadians died and another 54,000 wounded and damaged physically or psychologically
•Short and long-term economic effects:
-Government spending increased
-Manufactures of arms, airplanes, and ships rose
-Farming became more mechanized
•Unemployment fell (more than 1 million women joined the ‘paid’ workforce
The United Nations at Bretton Woods
•July 1944, representatives of 40 countries met in the small New Hampshire town of Bretton Woods for a conference sponsored by the newly found in United Nations
•Met to provide the economic turmoil that may lead to another war
John Maynard Keynes
•Believe that unrestricted capitalism had failed - governments playing a very limited role in the economy was wrong
•Believe that government needs to intervene at times in the economy to create economic stability
Friedrich Hayek
•Disagreed with Keynes’s fuse on the economic role of government
•Mistrusted government control, complete or partial
•Believed government should protect the market by ensuring that its rules and laws do not interfere with the competition between businesses
•Competition and market would keep the economy, healthy – government stay out of the way
World Bank and the IMF
•Mapped out at the Bretton Woods meetings
•Supported by United Nations and help expand international trade
