Chapter 9- Foundations of Economic Globalization
(Left wing) Middle (Right Wing)
___________________________NDP Canada__Liberal___USA___________________ Collectivism (gov’t intervene) -Mixed Economy (Canada) Conservative
Communism -Social programs Laissez faire (no gov’t)
Equality -Free Health care free market
High taxes Capitalism
Social Programs Smith Addam-wealth of Nations
Karl Marx-Communism Less taxes
-> Prosperity high
^ Depression (lower taxes) gov’t involved, People = unstable
Quality of Life: nations level of health, Happiness etc.
Standard of living: material goods comfort and well being in a society.
Economic Globalizations refers to the oil and gas pipelines and large tankers that carry oil product from Canada to markets around the world.
Some people see economic Globalization, as a force that creates healthy interdependence that will lead to prosperity for all.
-Others say it creates inequality with the rich getting richer and the poor getting poorer.
-Factors that effect Global economy: war, famine, economic uncertainty, natural disasters, change in investor’s confidence, and price change for non-renewable resources.
-Events that changed our Economy:
Imperial powers such as Britain, France, Russia and Germany wanted to protect their colonies – or expand- their colonies and keep other colonies as a source of raw materials. This led to competition which then brought World War I.
In the end results, Europeans cities, towns, etc. were destroyed they were corrupt. They borrowed from the United States but later on had to pay a debt of more than 7 billion dollars.
1914- World War 1 begins in Europe
1917-Revolution and civil war began in Russia
1918- World War 1 ended
1922-Civil war ends in Russia with the communists’ party in control
1929-Great depression begins when stock markets crash in major cities
1939-World war II begins in Europe
1939-1941 Great depression ends in various countries
1941- World War II expands to Asia When Japanese forces bomb Pearl Harbor and capture Hong Kong
1945- World War II ends with the surrender of Germany and japan
The treaty of Versailles was signed after World War I ended. It was suppose to ensure peace and prevent another global war. But negotiators t the peace conference imposed harsh conditions on Germany in form of reparations- payments for war damages in Britain, France, Russia, and other countries.
John Maynard Keynes, a member of the British delegation says that Germany and Austria with ward debts they are starving the people and guaranteed another war.
World war I was costing Canadians more than 2.5 million a day and income taxes had been temporarily introduced to help pay the costs.
Czar Nicholas II ruled Russian revolution – Russia. He was an absolute monarch who controlled the land. The economic systems were difficult because the peasants stayed as peasants and had no rights for property.
When World War 1 started, many peasants were killed because they did not have advanced weapons such as guns. So many peasant Russians were killed. Food became shortage while Rebellions started where workers and peasants were demanding for more wages. This made their economy shut down. Nicholas was