Title: A Brief Economic History of North America!
1A Brief Economic History of North America!
- Sections
- 1. Exploration and Conquest (up to 1400s /-)
- 2. Colonization and Exploitation (1400s to 1770s)
- 3. Revolution and New Government (1770s to the
late 1700s) - 4. US Expansion (late 1700s to 1850s)
- 5. Civil War (1850s to 1880s)
- 6. Development of the Nation (1800s to 1920s)
- 7. Venturing Abroad (1880s to 1920s)
- 8. Looking Inward (1920s to 1940s)
- 9. Super Power and Beyond (1940s to Present)
2A Brief Economic History of North America!
- This is Not a history class! Why are we studying
this? - You are correct. This is not a history class,
but many of the economic issues we will discuss
in this class have been substantially impacted by
what has happened from a historical perspective. - Examples
- Why are there 3 primary languages spoken in
N.America? - Why were there great difficulties in creating
NAFTA from a legal perspective? - Why are the 3 countries substantially different
in terms of economic development? - Etc.
- The following slides and lecture will provide a
VERY brief history of the North American
continent. It will focus on many broad themes
encountered when exploring the economic history
of the region and will eventually lead up to how
they impact todays current business environment.
3Exploration and ConquestEuropean Explorers
- Starting in the 1400s, waves of European captains
set out to explore the world. - The primary goals behind this exploration were
primarily - Gain economic wealth
- Find/develop trade routes to the East Indies
(China and the Far East) - Conquer new territories for nature resources and
markets - Spread the Christian Religion
- Intellectual Curiosity
- Adventure
4Exploration and ConquestEuropean
Explorers/Conquerers
Spanish Columbus (1492 ) Cortez (1519) Pizarro (1532) French Jacques Cartier (1530s) English John Cabot (late 1400s) Sir Walter Raleigh (1584) Russian Vitus Bering (1729)
5Colonization and ExploitationSpanish / French /
English
Spanish French English
Brought Mexico, current US South and SW under control Starting in 1541, France began to colonizing North America with forts and trading posts. Starting in 1585, England established 13 primary colonies on the eastern seaboard.
Ecomienda system with Indian labor digging mineral wealth from the ground to ship back to Spain The colonies were developed to export products such as fish, sugar, and furs. Economic value Major source of raw materials Forced market for English goods and a tax base
6Colonization and ExploitationEuropean Wars
Impact the New World
- European powers had many armed conflicts in the
late 1600s to the 1800s. These conflicts,
although started in Europe, often spilled over
into the New World. - The principle conflicts are known as the French
and Indian Wars. These conflicts were a series of
4 wars fought between 1688 and 1815 by the
expanding French and British colonies as they
contended for control of the western, or
interior, territories. - These conflicts ultimately decided the control of
French possessions in North America. The English,
through capture of Montreal in 1760, took most of
French Canada. This weakened Frances control on
the rest of their possessions in North America,
eventually leading to their purchase by the
United States.
7Colonization and ExploitationOther Economic
Issues
- Economic Base
- Canadian and New England Colonies
- Shipbuilding / Fishing / Lumber / Farming / Furs
- Mid Atlantic Colonies
- Shipbuilding / Farming / Trading
- Southern Colonies
- Cash Crops (Tobacco, Rice, Indigo)
- Mexico Gold, silver
- These goods are then shipped to their home
countries in exchange for manufactured goods. - Labor
- -Although most of the labor in Northern N.Am.
Came from settlers, many were indentured servants
or slaves.
8Colonization and ExploitationOther Economic
Issues
Triangular Trade Route - Fueled the growth of
slavery in the Americas and provided much needed
labor. Slave traders brought Africans to
the Americas Rum and sugar cane from the
Americas went to Europe Sales of these
products provided money to European slave traders
to capture and transport more Africans to the
Americas.
9Revolution and New Govt.War with France Effects
- Although the French and Indian War provided
increased British control over the New World, it
also started the process for the new American
colonies to revolt. - Gave the colonies a chance to unite against a
common enemy. - Provided colonies opportunities to increase ties.
- Left large numbers of British troops in America.
- The war was Extremely costly for the British and
caused them to impose many taxes on the colonies
to recoup their expenses. This issue proved to be
the key that caused the revolt.
10Revolution and New Govt. What were points of
conflict?
Other taxes were also levied, further angering
colonists.
11Revolution and New Govt.Colonial Response to
Taxes
- Due to the increasing amounts of taxes, colonists
began to boycott British goods and anti-British
sentiments ran high. - Events, such as the Boston Massacre (1770) or the
Boston Tea Party (1773), began to occur as the
colonists started resenting and resisting against
British rule. - The Boston Tea Party was a case where the British
crown granted the East Indies Trading company an
exclusive monopoly on the American market. Due to
increased prices and taxes relating to this
market, the colonists struck back through
boycotts and violence.
12Revolution and New Govt.The Next Step
- The crown further increased pressure to force
obedience. - First Continental Congress (1774)
- Called for each colony to begin training troops.
- Voted to ban all trade with Britain until the
Intolerable Acts ended. - Planted the seed for a future independent
government. - The Shot Heard Round the World (1775)
- British tried to disrupt colonial militarization
in Concord, MA and were repulsed. - Seen as the first real battle of the War for
Independence. - Declaration of Independence (1776) - Thomas
Jefferson - We hold these Truths to be self-
- evident that all Men are created equal,
- that they are endowed by their Creator
- with certain unalienable Rights, that
- among these are Life, Liberty, and the
- Pursuit of Happiness
13Revolution and New Govt.WAR!!!
- The Revolutionary War (USA name) or the American
Revolt (British name) was fought between
4/19/1775 to 10/17/1781 (or 9/1783 for the final
treaty. - Negative
- 1/3 of the people didnt want a war and 1/3 were
neutral. - Each colonies was loyal to itself, not to the
USA - No central govt. to raise money for war efforts
- Started with no formal, trained army.
- Positive
- Colonies received assistance from France, the
Netherlands and Spain - Home court advantage
- War of attrition and distance
14Revolution and New Govt.Aftermath
- The war left the new nation with some problems.
- The Revolution had cost a lot of money, and
Congress had borrowed from foreign sources and
American citizens. Now the money needed to be
repaid. - Setting up a central government to deal with debt
and other national issues was going to be
complicated. The Continental Congress would meet
many times to discuss economic issues and a new
system of government. - This new central government would prove to be a
struggle between Federalists (those favoring a
strong central government) and Anti-Federalists
(those favoring a system based on stronger state
governments)
- The Federalists, led by Adams Hamilton,
believed in a strong national government and
industrial economy and were supported by bankers
and business interests in the Northeast.
- The Democratic Republicans, led by Thomas
Jefferson, believed in a weaker national
government and an agricultural economy. They were
supported by farmers, artisans, and frontier
settlers in the South.
15Revolution and New Govt.Aftermath
- The US Constitution was finally passed in 1787
and was followed by the Bill of Rights in 1791. - The Constitution was the official framework upon
which the government was built, ie. the balancing
of the Executive, Legislative and Judicial
governmental branches, etc. - The Bill of Rights guaranteed the basic liberties
of American citizens, ie. freedom of speech,
press, religion, etc. as well as no taxation
without representation.
16Revolution and New Govt.Economic Implications
- Exports and Imports Wholesale Price Index
17American Exports, To From Britain 1783-1789
18Revolution and New Govt.Beginnings of the
National Debt
- The first Secretary of the Treasury, Alexander
Hamilton, pushed for the new nation to borrow
money. - He thought that the war debts must be paid off to
establish good credit and faith in our new
government, plus, it was to enforce strong ties
between all the states by jointly owing money. - He also believed that govt. needs the support of
the business people to remain strong. - His report to the President on the proposal to
establish a national bank included the following
message on business in America
- Industry is increased, commodities are
multiplied, agriculture and manufacturers
flourish and herein consists the true wealth and
prosperity of a state. - Report on a National Bank, Dec. 13, 1790
19US ExpansionMoving West
- There had been a lot of pressure on the colonies
and then the new USA to expand. Settlers wanted
more and more land to settle, this led to land
purchases by the US. - The first purchase was the Louisiana territory
owned by France.
20US ExpansionSouthern Expansion
- The next expansion came with the military
acquisition of Florida from Spain in 1818. - In 1836, Texas had won it freedom from Mexico and
had voted to become part of the US in 1846. The
US Army won a short war with Mexico when it tried
to reclaim the territory. - Further territory was purchased in 1853 for its
mining and railroad uses.
21US ExpansionUS, UK and Russia
- More territory was acquired or ceded by the UK
(Canada) and Russia to make up the current
borders. - With this expansion, there were no other lands to
move into. - This completion caused a number of issues.
22Westward ExpansionEarly 1800s Trends
- US Westward Expansion
- Encouraging Factors
- Canals
- Railroads
- Economic Development
- Manufacturing Capability Developed in the North
- Steam / Water Power
- Technology Improvement interchangeable parts,
etc. - Farming Technology in the South
- Cotton Gin (invented by Eli Whitney in 1793)
23Westward ExpansionCanada
- During this period, Canada also began a movement
of westward expansion. - Immigration greatly increased from the UK and the
new settlers began to spread across the country. - However, during this time, there was also an
immigration movement out of Canada to the US,
especially amongst French Canadians.
24Civil WarCauses Leading to the Civil War
- Primary Causes from an economic standpoint
- Economic/Production Basis Opposite Ends of the
Spectrum - Manufacturing vs. Agriculture
- Paid vs. Unpaid Labor
- Economic (and Political) Balance of the North vs.
the South - Trade vs. Trade Barriers
25Civil WarCauses Leading to the Civil War
- Economic/Production Basis Opposite Ends of the
Spectrum - Manufacturing vs. Agriculture
- North Major manufacturing of consumer, military
and other goods - South Cash Crop Orientation
- Paid vs. Unpaid Labor
- North - Paid Labor
- South Slavery widespread
- 25 of the citizens owned slaves
- 4 million total Negros
- Not enough whites to work
26Civil WarCauses Leading to the Civil War
- Economic (and Political) Balance of the North vs.
the South - Trade vs. Trade Barriers
- North
- Created tariffs to protect and encourage domestic
manufacturing - Not import/export oriented
- Enough power to create tariffs (19 free states /
15 slave states originally, the N/S had been
balanced, but with the additional states entering
the union, imbalance occurred.) - South
- Received reciprocal tariffs from other countries
in the export of their goods - Completely import/export oriented
- Difficult to create more slave states to balance
Northern political power
27Civil War N vs. S Industrialization
28Civil War N vs. S Industrialization
29Civil WarWar Starts
- The Civil War started in 1861 and ended in 1865.
- In this time, there were 865,000 casualties (dead
and wounded) total from both sides. This was the
bloodiest conflict that the United States has
ever faced. - The war began with the secession of the Southern
states from the Union. President Lincoln fought
to restore the union (not end slavery).
30Civil War Troubles South of the Border
- During the course of the US Civil War, Mexico
also experienced war. - In 1862, France invaded under the pretense of
collecting unpaid debt. Mexican patriots
successfully fought off the French armies under
Ferdinand Maximilian Joseph of Austria and
finally regained independence in 1867.
- Mexico then went through several leaders to be
governed by President Diaz who held power through
approx. 1920 before another revolution threw him
out of power. Under Diaz, Mexicos infrastructure
improved greatly but social inequities caused
major problems within the country.
31Development of the NationInventions / Advances
- The US (and Canadian/Mexican) began to quickly
industrialize in what is known as the 2nd
Industrial Revolution. - Several breakthroughs greatly assisted.
- Bessemer process for making steel. (1850s)
- Cheap steel for railroads, machinery, etc.
- Refinement of oil (1850s)
- Replaced whale oil with kerosene, created
gasoline, etc. - Harnessing of electricity (1879)
- Telegraph and Telephone (1850s and 1876
respectively) - Automobiles
- US built its first gas powered car in 1893
- Airplanes (1903)
32 The rise of corporations and powerful business
leaders led to the dominance of big business in
the United States.
Development of the NationBig Business
- Many entrepreneurs formed their businesses in the
late 1800s as corporations. - Corporations encouraged more investment in
businesses because stockholders could sell stock
whenever they wanted. - This led to a Huge and rapid growth of business
in America. - Canada soon followed America to a lesser extent.
- Big Business in Mexico was constantly hampered by
inefficiency, non-rule of law, govt.
nationalization of companies, etc.
33Development of the NationLabor Movement Ideas
- People and the government began to view big
business as a problem in the late 1800s. - Concerned about child labor, low wages, and poor
working conditions
34Development of the NationAnti Trust Movement
- Critics said many businesses earned their
fortunes through unfair business practices. - Used size and strength to drive smaller
competitors out of business - Powerful trusts sold goods and services below
market value until smaller competitors went out
of business, then raised prices. - Some people were concerned when a trust gained a
monopoly, or total ownership of a product or
service. - The Sherman Antitrust Act passed in 1890 made it
illegal to create monopolies or trusts that
restrained trade. - The act did not clearly define a trust in legal
terms, so it was hard to enforce. - Corporations and trusts continued to grow in size
and power.
35Development of the NationTransportation Systems
- All three countries had a very similar
progression for their transportation systems.
However, all 3 progressed at different rates. - System Progression
- Stage Coach
- Rail Roads
- Roads
36Pacific Railroad Act, 1862
- Authorized a route from Omaha, Nebraska, to San
Francisco, California. - Building the railroad could not have been
possible w/out the substantial land grants from
the US govt to the railroad companies - Land grants financed construction. Allowed
homesteaders to claim 160 acres (about 200,000
pyeong) of land free if they lived and worked on
it for 5 years. - Companies received 120km right of way gt 60 km on
either side of the rail line - Value of this land increased w/the coming of the
railway b/se it was close to the line - 1920 peak of railroad construction w/420,000 km
of track
37Automobiles
- 1900 8,000 automobiles in the US
- 1920 8 million cars, 1 million trucks
- 1904 rural roads were dirt tracks
- 1924 750,000 km of rural highways w/paved
surfaces
38Venturing AbroadTrade and Muscle Asian Policy
- China
- European powers gained spheres of influence in
China and the United States feared it would be
shut out of the valuable China trade. - Increased foreign presence in China led to the
Boxer Rebellion in 1900 and the US contributed
troops to help. - Japan
- Commodore Matthew Perry brought four steamships
into Tokyo Bay in 1853 to pressure Japan to - open its ports to trade. Tactic was
- known as Gunboat Diplomacy.
- Korea
- Similar to Japanese opening tactic.
39Venturing AbroadSpanish American War
- The US and Spanish fought on 2 fronts
- Caribbean
- Philippines
- Decisively defeating Spain in both areas, the US
took over the areas (as well as Guam) and
governed them for varying periods of time before
letting the people declare independence and
forming their own pro-US countries.
40Annexing the Philippines
Controversy raged in the United States over
whether to annex the Philippines.
- For Annexation
- Believed the United States had a duty to spread
its values overseas. - Philippines had economic and strategic value that
should not fall into the hands of other
countries.
- Against Annexation
- Believed annexation would violate the ideal of
self-government - Did not want oppression to occur The United
States should not export racism and violence - Some Americans believed annexation would increase
immigration to the United States.
The US did annex the Philippines. Several years
later, they were fighting Filipino rebels. Full
independence was giving in 1944.
41Venturing AbroadCentral America
- The US had long claimed that the Western
Hemisphere was off-limits to Foreign Powers. - Monroe Doctrine was an early declaration in 1823.
- However, until the late 1800s, the US was too
weak to force European countries to stay out.
Post civil war, the US gained the strength and
will to use their new power. - Reasons for creation
- Keep Europe out of the Western hemisphere
- Reserve area for US commercial and political
interests - Roosevelts motto "Speak softly and carry a big
stick, and you will go far.
42Venturing AbroadCentral America
- The US began an interventionist policy to
protect US political and commercial interests
in central America. - The US invaded many countries in the area, from
Mexico, Haiti, Nicaragua, Honduras, etc. - Sometimes on the request of the home govt., ie.
Panama - Sometimes on the request of US business
interests, ie. Guatemala (United Fruit now
Chiquita)
43Venturing AbroadPanama Canal
- Another extension of American military and
economic might was the building of the Panama
Canal. - In 1902, the US purchased the right to build the
canal from the French and went on to support the
new Panamanian government against rebel troops.
For their help, they were given a lease for the
Panama canal. - Took from 1904 to 1914.
- Allows trade and military vessels much quicker
travel between the Atlantic and Pacific oceans.
44Venturing AbroadWWI
- World War I was an important time period in US
and Canadian history that must be mentioned.
Although the main points, as they relate to
N.America, are not primarily business related,
they still have a large degree of economic
meaning. - When the great powers of Europe went to war in
1914, the US wanted to remain neutral although
they did have greater support for England and
France due to historical and business ties. - Canada, however, began shipping volunteer troops
early.
45Venturing AbroadWWI
- Despite remaining neutral for some time, the US
finally entered the war for 2 reasons - U-Boats sinking of US passenger and merchant
ships - Zimmerman note where Germany proposed an allience
with Mexico and requested them to attack the USA.
Mexico declined. - In 1917, the US began raising an army.
- Both the US and Canadian troops fought with
distinction until the war ended in 1918.
46Mobilizing the Economy
47Mobilizing Workers
- During the war, the profits of many major
industrial companies skyrocketed because
companies sold to the federal government. - This created enormous profits for stockholders of
industries like steel, oil, and chemicals. - Factory wages also increased, but the rising cost
of food and housing meant that workers were not
much better off. - War demands also led to laborers working long
hours in increasingly dangerous conditions in
order to produce the needed materials on time and
faster than other companies. - These harsher conditions led many workers to join
labor unions.
Union membership increased by about 60 percent
between 1916 and 1919, and unions boomed as well,
with more than 6,000 strikes held during the war.
48Looking InwardBefore the Collapse
- The Roaring 20s were a period of great social and
economic change in the US. - Women sought more rights.
- Urbanization
- First time that there were more Americans in
cities than on farms. - Many negros migrated to northern cities.
- Prohibition
- Business prospered
- Rise of radio and movies
49The Appearance of Prosperity
- Strong Stock Market
- The stock market, where people buy stocks, or
shares, in companies, performed very well in the
1920s, with stock values sharply increasing each
month. - The value of stocks traded quadrupled over nine
years. - The steep rise in stock prices made people think
the market would never drop, and more ordinary
Americans bought stocks than ever before. - The number of shares traded rose from 318 million
in 1920 to over 1 billion in 1929. - Business leaders said everyone could get rich
from stocks.
- Strong Economy
- Between 1922 and 1928 the U.S. gross national
product, or total value of all goods and
services, rose 40 percent. - Though farmers and some other workers didnt
benefit, the overall economy performed well,
especially for automakers and those who made auto
parts. - Overall unemployment remained low, averaging
around five percent between 1923 and 1929. - Union membership slowed as employers expanded
welfare capitalism programs, or employee
benefits. - This feeling of prosperity encouraged workers to
buy new products and enjoy leisure activities
such as movies.
50Looking InwardUnseen Trouble
51Looking InwardThe Crash
- October, 1929 Rumors began to circulate.
- Thursday, October 24, 1929 Panicked selling
causes huge sell-off to occur - Friday, October 25, 1929 Leading bankers join to
buy shares and stop a collapse. - But on Monday the market sank again, and Black
Tuesday, October 29, was the worst day, affecting
stocks of even solid companies. - In those short days, overall company market value
fell by 50.
52Losses
- The loss from the crash was unbelievable
- 12 million people went out of work,
- 12,000 people was made unemployed everyday,
- 20,000 companies and 1616 banks had gone
bankrupt, and - 23,000 people committed suicide in one year the
highest ever. - The total loss by the end of the next week
amounted to 30 million dollars, ten times more
than the annual budget of the federal government,
far more than the U.S. had spent in all of World
War 1. - Contributing to The Great Depression.
53Looking InwardCrash Effects
- Individuals
- Most the stock they held is now worthless.
- Banks
- Many people were worried about their money so
they withdrew it from banks en mass. Causing
banks to fail. - Some banks also failed due to their stock market
investments. - Businesses
- Banks would not lend money so no new investment.
- People were not spending so people were laid off.
Now people have even Less money to spend.
54(No Transcript)
55Looking InwardCrash Effects
- International Trade
- The fragile economies of Europe were still
struggling from World War I. They had borrowed a
great deal of money from American banks that the
banks now wanted back. - With U.S. buying power down, foreign businesses
were less able to export their products and were
forced to fire workers so they were less inclined
to buy US exports. - Governments tried to protect themselves by
passing high tariffs, making foreign goods
expensive. Due to this, the export market began
drying up thus making the situation even worse.
56The Smoot-Hawley Tariff Act
The Act
The Effects
57 Looking Inward Great Depression
- Beginning with the stock market crashes, the US
economy sank. - Many were effected
- Farmers Demand went down and so did crop prices.
Hundreds of thousands of bankruptcies and
foreclosures. - Workers Unemployment averaged 25
58The Impact of the New Deal
- Franklin Delano Roosevelt was elected President
and implemented 2 plans that are called the New
Deal
- Relief
- Millions of Americans enjoyed some form of help.
- Direct relief or jobs that provided a steady
paycheck - Programs such as Social Security and unemployment
insurance became a fixture of government.
- Recovery
- Not as successful at economic recovery
- Unemployment remained high.
- Some critics argued that Roosevelt needed the
support of big business. - Other critics said that the New Deal didnt spend
enough money.
- Reform
- More successful and long-lasting
- FDIC restored public confidence in the nations
banks. - SEC restored public confidence in stock markets.
- New Deal left thousands of roadways, bridges,
dams, public buildings, and works of art.
59(No Transcript)
60The Impact of the New Deal
- The New Deal promised relief, recovery, and
reform. - Relief programs put billions of dollars into the
pockets of poor Americans. - The New Deal was less successful in delivering
economic recovery. - New Deal reforms were successful and
long-lasting. - The New Deal changed the link between the
American people and their government. - Roosevelt believed that government could help
businesses and individuals achieve a greater
level of economic security. - The New Deal required a much bigger government.
- Americans now began to look regularly to
government for help.
61Superpower and BeyondInteresting Times...
- A song by Billy Joel recounts much of what we
will discuss in this section.
http//www.youtube.com/watch?vjR-A4QFHZBA
62Superpower and BeyondTrying to Stay Out!
- Hostilities were erupting in Europe again and N.
American nations tried to maintain their
neutrality. - People even turned against the League of Nations
as they felt that it would drag them into another
war. - Even a new trade policy was even implemented...
- Congress changed the neutrality laws to a new
policy called cash-and-carry. - Countries at war could buy American goods if they
paid cash and picked up their goods at American
ports.
63Superpower and BeyondTroubles with Japan
- America was finally pulled into the war in 1941
as the result of an attack on Hawaii by the
Japanese navy. - Afterward, the US declared war on Japan, Germany
and Italy.
64American Industry and Science in World War II
- Troops needed proper equipment to fight World War
II. - Factories that produced consumer goods were
converted to the production of military supplies. - Roosevelt called for the production of new planes
and tanks. - War supplies had to be shipped overseas.
- Submarines took a terrible toll on American
shipping. - American shipyards turned out thousands of new
vessels to replace those lost during the war
using assembly-line techniques. - Wartime agencies regulated what factories
produced, what prices they could charge, and how
the nations raw materials could be used.
65Mobilizing Industry and Science
- Factories needed workers at the same time men
were leaving to join the armed forces. - Women solved the problem. Millions began to work
outside the home in industrial jobs. - Working women of the war were represented by the
symbolic figure known as Rosie the Riveter.
Rosie the Riveter
- Many workers joined labor unions and the
government was concerned about strikes. - The National War Labor Board was established in
1941 to help settle labor disputes. - The Smith-Connally Act passed in 1943.
Labor in WW II
- The Manhattan Project began a top-secret mission
to build an atomic bomb. - Physicist J. Robert Oppenheimer and other
American scientists raced to develop this weapon
ahead of the Germans.
Mobilizing Science
66Challenges after the War
- United Nations
- Representatives from 50 countries met to form a
new organization, the United Nations. - The UN was meant to encourage cooperation among
nations and to prevent wars.
- Potsdam Conference
- Allied leaders met in the German city of Potsdam
to discuss the spread of communism and Soviet
influence in the postwar world. - Truman hoped to get Stalin to live up to his
promises from Yalta. - Stalin did not do this.
- Rebuilding
- MacArthur led efforts to help Japan rebuild its
government and economy. - Seven Japanese leaders were tried for war crimes.
- Rebuilding Europe caused tensions between the U.S
and the Soviet Union.
67Marshall Plan
- 1947 Massive aid package to help war-torn Europe
recover from the war - Purpose prevent communism from spreading into
economically devastated regions - Result Western and Central Europe recovered
economically -- the "economic miracle" - Soviets refused to allow U.S. aid to countries in
eastern Europe
68Cold War?
- The tension and rivalry between the USA and the
USSR was described as the Cold War (1945-1990). - There was never a real war between the two sides
between 1945 and 1990, but they were often very
close to war (Hotspots). Both sides got involved
in other conflicts in the world to either stop
the spread of communism (USA) or help the spread
(USSR).
69Superpower and BeyondCold War Hotspots
Clockwise Korea Cuba Afghanistan Berlin
Wall Vietnam
70Economic Miracles
- Causes
- Marshall Plan aid helped western Europe begin
recovery in 1947 - Korean War in 1950 stimulated economic activity.
- Economic growth became a basic objective of all
western European governments. - Governments accepted Keynesian economics to
stimulate their economies. - Germany and France were especially successful and
influential. - In most countries many people willing to work
hard for low wages expanding industries
benefited. - Increased demand for consumer goods.
- Many economic barriers eliminated and a large
unified market emerged Common Market.
711970sMajor Trends
- Energy
- OPEC formation
- Oil Shocks (1973, 1979)
- Intl. Economic Cooperation
- Bretton Woods system (rules intl. commercial and
financials relations, currency pricing, etc.) - Stagflation
- Growth of Technology
721980sMajor Trends
- USA
- Trade
- Worldwide Liberalization
- Multinationals Grow
- Growth of Japanese Imports
- Canada
- Quebec Referendum
- Independence! (1982)
- Mexico
- Zapatistas
- Glasnost!
731990sMajor Trends
- USA
- Trade Grew
- NAFTA
- GATT and WTO Formation
- Energy
- Cheap Oil
- General Economy
- DOW skyrocketing
- Canada
- Growth of Quebec Separatism
- Mexico
- Zapatistas
742000sMajor Trends