Bellwork: August 14th
1. How did WWI impact Brazil’s economy?
2. How did WWI impact Canada’s political status?
3. With regards to pre-WWI economies, what did
Canada and Latin America have in common?
4. THINKER: Historically, war tends to improve a
nation’s economy. Thinking back to WWI, make a
prediction  How did WWI impact the U.S.
economy?
The Impact of the First World
War on the Americas
• Our next major topic of study is the Great
Depression in the Americas.
• In order to better understand the causes of the GD,
we need to look at the post-WWI economies of the
U.S., Canada, and Latin America.
• For the rest of class (and potentially homework), you
are going to read about Canada and Latin America
on pgs. 173-179 and complete the corresponding
worksheet.
BELLWORK 8/17
1. During the war, Great Britain 6.
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?
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?
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!
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.
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.)
Canadian Economy Post-WWI
• Mid-1920’s:
Recovery!
• Wheat was
important export
• Huge growth in
exploitation of
natural resources
– Paper mills
– Mining
– Forestry
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)
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
Timber: Quebec City
To transport
goods, the
Canadian
government
expanded the
railroad
(British
Columbia)
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
Discussion
• Foreign ownership of companies in
Canada has been extremely controversial.
Why do you think this is? Is U.S. influence
in Canada more of a positive/negative
thing?
• How do you think the changes in the
Canadian economy effected their status as
a British dominion/commonwealth?
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
America the Story of Us: Boom
• This episode focuses on the “boom” of the
U.S. economy post-WWI.
• As we watch, take notes on how the
economy changed and why!!!
• Be ready to discuss Monday!
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
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.
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, 6day 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.
MODEL-T
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.
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 moderateincome 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.
Just a day at the office……
Henry Ford (2nd from right) meets with
John Parameter (Canadian PM),
Calvin Coolidge (US Pres) & Thomas
Edison
Consumerism
• Consumerism: increasing
consumption of goods is
economically desirable
• Contributors to
consumerism:
–
–
–
–
Radio
Advertising
High Wages
Buying on Credit
Discussion
• As you know, the U.S. became the world’s
leading creditor post-WWI. The
advantages of this reliance on the US
economy contributed to significant growth,
but make a predication  What could go
wrong with this system?
Discussion
• Compare/contrast the post-WWI
economies of Latin America, Canada,
and the United States.