IB History Review - History of Americas
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- Effects of GDepression on Latin America
- Foreign markets collapsed and the prices of its raw materials and foodstuffs fell much more sharply than those of the manufactured goods in imported. The US sharply reduced foreign spending and investment in Latin America.
- Causes of Mexican Revolution
- Presence of the US as inspiration and supplier of arms, disparity in levels of living, and a cultural gap between the elite and the masses
- Causes of the Depression
- Uneven distribution of income, Stock Market Crash of 1929, Stock Market speculation, excessive use of credit, overproduction of consumer goods, weak farm economy, government policies, and global economic problems (WWI)
- Reconstruction Finance Corporation (RFC)
- A measure to support faltering railroads, banks, life insurance companies, and other financial institutions. Hoover reasoned that emergency loans to these businesses would help stabilize them. The benefits would trickle down to the smaller businesses, bringing recovery.
- Mexican Revolution
- Overthrowment of Porfirio Diaz. Leader of revolution was Francisco Madero, but he refused to be sworn in as president because he wanted a democratic election.
- Social Effects of GDepression
- Affected all classes, poverty, homelessness, and stress increased, morgage foreclosure and evictions were common
- Federal Farm Board
- (Actually created prior to crash, but powers expanded to meet economic crisis, created under Hoover) Board was allowed to help farmers stabilize prices by termporarily holding surplus grain in storage. However it was too small to handle the overproduction of farm goods.
- Zimmerman Telegram
- The German government tried to keep the US out of WWI. Proposed a telegram to Carranza saying he should invade the US, and in exchange they would get the SW territories it lost.
- Black Tuesday
- October 29, 1929. The bottom fell out in the stock market. Millions of investors ordered their brokers to sell, but no buyers were to be found. From that day on the Wall Street prices kept going down. Three years later in 1932, stock prices finally hit bottom.
- Hoover's Policy
- Prosperity would soon return. The nation could get through difficult times through voluntary actions and trestrant. Hesitated for Congressional action.
- Gross National Product (GNP)
- The value of all the goods and services produced by the nation in one year. Dropped from $104 billion to $56 billion during the Great Depression
- Debt moratorium
- War debts could no longer continue, it was so bad. Hooever proposed a suspension on the payment of international debts, Britain and Germany agree, but France declined. The international economy suffered from massive loan defaults.
- Effects of GDepression in Canada
- The economies in the prairie provinces were destroyed, the price of newsprint began to fall causing many plants to shut down.
- Bonus March
- 1932, 1000 unemployed WWI veterans marched on Washington demanding immediate payment of their bonuses which were to be given to them in 1945
- Political Effects of GDepression
- Republican domination of government ended, the power of the federal government increased significantly
- Hawley Smoot Tariff of 1930
- Increased taxes between 41% to 49% on foreign imports. Purpose was to satisfy US buisinesses who though that higher tariffs would protect their markets from imports. However most European nations instituted their own high tariffs, reducing trade for all nations, sinking everyone further into depression.
- Black Thursday
- October 24, 1929. Stock prices fluctuated greatly for several weeks, but panic did not start until this day.There was an extremely lartge volume of selling on Wall Street and the stock prices plunged. A group of bankers bought millions of stocks to try to stabalize the prices, but it only worked for a day.