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20 Cards in this Set
- Front
- Back
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grain invasion:
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influx of farm/grain products from US/Canada/AUs into Europe, 1870. caused by transport rev.
railroads, steamship, refrigeration makes transport easier. negative impact on E farmers who couldn't compete, lost CA. same with UK but hey switched CA to dairy farming and free trade. GR opted for protectionism. |
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Chinese Exclusion Acts
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suspended immigration of chinese for 10 years in 1882, restriction of free immigration. US threatened by cheap chinese labor and organized to defend their interests. rising inequality!
SS predicts that immigration in labor scarce would hurt the labor of that country. politically defend interests. 1921 quota system. |
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Kathe Kollwitz
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german expressionist artist during WWi. took influence from wars.
GR expressionist, captured horror of WWI. Widows and orphans, the survivors, call of death. |
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coalition of iron and rye
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After cobden chevalier there was a movement for free trade but Germany didn't follow.
GR tariff est in 1879 by chancellor Bismarck, compromise between labor and capitalist interests. during grain invasion, fall in transport costs allowed entrance of cheaper grain from land abundant countries into GR. lost CA in grain. Junkers are large agricultural estate owners, couldn't compete at the lower prices. Junkers wanted protection from foreign grain. GR capitalists want protection from UK manufactured goods, this interest group combines both. demonstrates CA theory. also Junkers held majority of parliament/gov seats, a malappropriated amount and had an unfair advantage with vetoing items. losers of G want protectionism. Prussian belt was the loser. |
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Great Depression 1873-96
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worldwide econ recession. caused b fixed ER on gold standard of 19thC. appreciation of the value of gold caused world wide deflationary pressure. hurt agriculture interests. series of major gold discoveries in 1880s and 90s relieved shortage of gold. shows drawbacks of gold standard and fixed regimes.
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War debts and reparations
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european nations borrowed much during WWI and US demanded it all returned. allies owe 10.3 billion, liberty loans given out. reparations are money required from the loser by the winner to repay cost of life and damages. GR required to pay 33 billion after treaty of versailles (Keynes was against).
WWI stimulated demand for US goods and they became number one creditor. refusal to forgive debts led to GR reparation? triangle. Great depression/WWII caused by this? Dawes Plan tries to help solve reparation problems. |
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league of nations
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1919-46: intergov org that ended WWI. first permanent intl org whose job was to maintain world peace. proved incapable, as axis powers later withdrew. failed when start of WWII. replaced by UN.
set stage for global coop. US senate denied entrance to it. Wilson wanted it. |
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dawes plan of 1924
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Set up by Dawes, solution to war debt/reparation triangle! wanted to settle reparation issues and stabilize GR finances. US bankers took charge of German central bank and fiscal policy to stabilize currency/ control hyperinflation. brought foreign capital into GR market.
allies owe war debt to US, GR has reparation to FR, US refuses to forgive. GR defaulted on delivering to FR so FR took Ruhr Valley. created cycle of money. |
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treaty of versailles
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peace treaty after WWI, forced reparations on GR. provided creation of league of nations, US didn't join BC senate.
GR seen as responsible for war. led to hyperinflation, dawes plan. got angry, possibly led to great depression and WWII. Keynes was against |
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cyrus mccormick's mechanical reaper
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agricultural tech in 1831, increased productivity from .5 to 12 acres a day. scythe v. reaper. harvested faster.
G increased demand for reapers, sales stimulated. intl grain market expanded with transport rev. Grain invasion on Prussia. tech gave US advantage and disadvantage to EU. US had greater incentive to mechanize BC they had fewer farms and more land (endowments) |
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hyperinflation
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GR printed money in order to pay debts. Austria and Hungary also did the same, weak governments, to pay civil servants and provide social services. Hyper is inflation more than 50%. End of 1923 GR prices were 1.3 trillion times higher than in 1914.
occurs when country experiences high and unusual accelerating inflation. general price level increases quickly, as currency loses value. Zimbobwe hyperinflation was worse than GR!! inflation can destroy values of currencies and in extreme cases lead to communism. |
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junkers
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prussian agriculturists. suffered from grain invasion. enacted protectioism. had unfair majority in parliament, no longer have CA in grain. SS says they were hurt by this.
maintained central role in gov, influenced decisions, overrepresented. Bismarck helped iron and rye coalition, protectionism. |
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consumer durables revolution
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expensive products that people use for years, brand names/service/reliability/became important. durable goods need more machinery and less raw materials. gave rise to bigger factories and corps.
US was short on labor, domestic servants were expensive. created need for household machines to lighten workload. mass production and consumption rose. as income doubled from 1870 to 1913 demand for consumer goods other than clothes food shelter doubled. new inventions made new home machines possible. like the phone, car, radion, etc. they were expensive and thus needed to last for years, and make a good name for themselves, that's why branding was so important. rapid industrializing countries had advantage. GR and US adopt new pattern of production/consumption from start and didn't have to play catch up like UK. Since US started later they by passed much of the older clunkier models and moved on to the more mass production type of factories, bigger too. |
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keynes' economic consequences of the peace
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best selling book. expressed criticism of versailles treaty. said demands on GR immoral and impossible. helped est Bretton Woods. drew from learned lessons of Versailles and Great D.
helped consolidate US public opinion against treaty and involvement in league of nations. many UK thought GR treated poorly and that was crucial in support to avoid war by making concessions to aggressor. Marshall plan based on his ideas. 12 languages. |
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integrated multi plant corps
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new corps after interwar that grouped previously independent operations into one corp. like research design and production. saw a product from beginning to end. from raw materials all teh way to product.
vast and interconnected scale of production. highly specialized goods and one one supplier and one buyer, car part for specific type of car. issue of pricing and made buyers and suppliers unusually reliant. corp design/ads/marketing seemed to mold customer demand to meet supply. increased consumption. now vertically integrated means more efficient bc control all stages. decreased price per unit. ford didn't want to be at mercy of supplier hence the mass production line. |
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liberty loans
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war bond sold from US to allies in WWI, 10.3 billion. allies needed money for war munitions.
subscribing to the bond was symbol of patriotic duty. introduced idea of financial securities to maintain citiziens. after US refused to forget. led to Great D and WWII. people loaned money to the government to provide funds for War. |
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rise of organized labor
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• Unionization wasn’t discouraged in the newer MNCs.
o Wages were a small portion of costs for newer industries than for older ones. o Dependent on complex labor and paid usually high wages. o Interwar return to protectionism meant wage increases would no lead to competitive threats from imports. o Firms tended to dominate their markets with products consumers were loyal to they could often pass increased labor costs on to customers with little loss of sales. • Growth of unions complement growing dominance of large corps. • Technological advance leads to economic advance but not so in this case. • While the boom in corps and MNCs lead to labor increase as well, and higher political power for labor unions in other EU countries. However it crushed some farmers. |
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smoot hawley tariff of 1930
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tariff passed by congress to raise tariffs on 20K+ imported goods. reduced US exports and imports by half.
isolationism resulted from WWII, more protectionism. as entered first stages of Great D. US main goal to protect US jobs and farmers from foreign. tariffs intensified adjustment problems for deficit nations and triggered trade war that all lost. the dominant econ the US needed to open its markets so deficit countries could return to trade. retaliation! logrolling happened, tariff was amended so many times because representatives promised to vote for your district to have better tariff for a vote for mine. |
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competitive devaluations
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compete for low interest rates. as price to buy currency falls so does the price of exports from that country. imports become more expensive. ...
happens when country needs to improve employment and domestic industry. collapse of bretton this happened. price increase on imports harm citizen's purchasng power and lead to inflation. triggers retaliatory action by other countries who in turn leads everyone into decline.... NO IDEA |
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liquidationism
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during Great D suggested by Mellon, aimed to force down prices and wages so excess stocks of labor/food/goods will be liquidated before recovery can begin. this is pre1929 orthodoxy. believe in laissez faire and business cycle.
stock market crash, industrial country govs decided to do nothing. let recession fix itself. idea was that once wages/prices fell capitalists would begin to hire and consumers would be able to buy again. gov wanted to remain on gold and betted on liquidationism, to purge all rottenness out of the system. didn't work, negative expectations. did measures of austerity, fed kept interest rates high at time when prices were falling 15% a year. |
