I&S Interwar Years Study Guide PDF

I&S The Interwar Years Study Guide Chapter 3: The Interwar Years I. Search for Security League of Nations -The first international organization whose purpose was to maintain world peace. International Cooperation -Promoted international cooperation...

I&S The Interwar Years Study Guide Chapter 3: The Interwar Years I. Search for Security League of Nations -The first international organization whose purpose was to maintain world peace. International Cooperation -Promoted international cooperation through an internal association. Arbitration A third party (the arbitrator) listens to both sides and makes a binding decision. Collective Security -Members helped any member who was the victim of aggression. II. Canada in the Interwar Years Aftermath of the War -Growing discontent among soldiers left in Europe, unable to return home. -Soldiers demanded money and compensation for their pain and suffering from the war. -Returning soldiers struggled to adjust to “a normal life.” -Growing resentment between French-Canadian relationships Made known that Canada was in no way subordinate to  Great Britain. The Statute of Westminster (1931) -Legally recognized Canada’s autonomy of Great Britain in 1926. British Commonwealth of Nations -> Free/equal states, common allegiance to the Britsh Crown, Britain’s former colonies Included: canada, new zealand, australia, south africs The Great Depression -Severe global economic downturn from 1929 to 1939. High rates of unemployment + poverty. Laissez faire -Governments and Economy -> “Let it be” / “Don’t get too involved.” Economic Vocabulary Revenue -Money taken in by the government (taxes + customs duties) Expenditures -Money spent by the government. Budget -Spending plan developed by the government. -Revenues are totalled and all expenditures for the coming year are announced. Balanced Budget -Expenditures = Revenues Deficit -The government’s budget shows expenditures that are larger than its revenues. Currency -Actual money used in a particular country.  Capitalism -An economic system where the country’s trade + industry are controlled privately. Market Economy -Individual producers + consumers determine the kinds of goods/prices. Supply and Demand -Supply = Availability of a particular product/commodity -Demand = How badly people want the product Business Cycle -Cycles of prosperity and recession every five or six years or so. Recession -Economic activity = in decline Boom -Extreme prosperity Bust -Serious downturn following a boom Causes of the Great Overproduction -Overproduction caused factory owners to panic -> they fired workers -> Depression less money to buy goods -> sales slowed down more Reliance on Exports -Canada depended heavily on exports of staples (crops, minerals) Reliance on US 40% of exports were sold to the United States Stock Market Crash Black Tuesday -> October 29, 1929 (stock market crashed) Buying on margin -> Companies would sell stocks (shares) to get the  money they needed to expand. Investors would buy stocks on borrowed money in exchange for shares of their profit. Speculation -> The process after buying on margin. Sell, re-pay the loan, and harvest a large profit. Economic Protectionism + Tariffs -Tariffs -> Duties (money) collected on goods coming into a country. Protectionist -> The Government protected home industries from the competition of foreign goods through tariffs. International Debt -Many people owed the US and depended on selling their products to repay this. When US became a protectionist, they couldn’t repay. Responses to the The US -President Hoover “toughed it out” and did not introduce any relief measures. Depression New Deal -Franklin Roosevelt was elected and promised to implement relief programs in 100 days of action to put Americans back to work. Keynesian John Maynard Keynes -> Proposed government spend their way out of the Depression Economics Deficit Financing -Government borrows money -> repaid in future when economy recovers -> spend on huge employment projects Canada -Canadian citizens + government addressed the problem in different ways  Riding the Rails -Riding on top of trains in search of employment Pogey V-ouchers (food/essential items) for qualified people. -> Lower than lowest paying jobs to discourage people wanting it. -> Insufficient: Left many people starving + suffering from disease Unemployment -In exchange for labour on public work projects, men got $0.20 per day + Relief Camps room and board to start them off economically. Bennett’s New Deal -Progressive taxation (the more you make, the more you pay) -Maximum number of hours in a work week -Minimum wage -Stronger regulation of working conditions -Unemployment insurance -Health and accident insurance -Revised old age pension plan -Agricultural support  -Marketing Board to regulate wheat prices On-to-Ottawa Trek and the -Relief camp workers were frustrated and boarded trains in Vancouver, bound for Regina Riot Ottawa to protest. They wanted “work with wages” or “real jobs” Consequences of the Unemployment -25% unemployment rate in industrialized countries Great Depression Employment -Government support to help fired workers meet their basic needs while Insurance they looked for jobs -> Nonexistent during the Great Depression Banking Failures -People saved money in banks but the banks spent all the money. Polticial consequences -Americans doubted the validity of the American Dream -Canada formed new parties (Ex. NDP) Government -Began to “tighten their belts” and cut back on government spending -Leaders realized they needed to be more actively involved in the economy The roaring 20’s: lost all their money No one wants to buy anythingStock market crash The dirty 30’s: nobody had any money Banks colapsed Overproduction Mackenzie king RB benat, most time during the great depression Tariffs: protect national intrusts How to get out of an economic hole Tirckle down theory: give to the rich and it will trickle down to the poor