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The Industrialized Democracies p. 512 Post-WW II Economics • Post-World War II saw the economic explosion of capitalist democracies (3) • Large American businesses spread worldwide after World War II. – US construction and transportation businesses • carry out the massive reconstruction projects in Europe and Asia. • Increased US military bases around the world brought billions as well. – American businesses were so profitable that international investors put billions into them That Business Cycle • The growth of the economy shown on a graph – Trough, recovery (boom), peak, recession….. • Recession: • economic slowdown. – Businesses lose sales, • they cut costs (jobs, production). • For 20 years after WW II, recessions in America were mild and short. • Two hard recessions would happen in the mid 1970s – and from 2008….. • On the average, more Americans had access to – better jobs – personal credit Suburbanization: • Many urban Americans saw new, cheaper communities being built by developers away from the cities. • Now easy to live far away and still work in the city. – Highways, – freeways • President Eisenhower’s Interstate Highway Act, – commuter rail lines 1925 much suburbanization after World War I. • Railroad developed, • the river is being controlled partially. • Still no freeway; –the main route is San Fernando Road. Looking toward downtown from Elysian Park (I-5 freeway below). • This area becomes “old” part of Los Angeles as people move farther into the Valley. Contemporary view over Studio City. • Verdugo Hills and Burbank are far off in the foothills to the right….. • many of the houses here and apartment and business buildings in the Valley below were erected between the 1940s and 1970s. Suburbs of suburbs….. • Later, by the 1980s, suburbs began to spread – west to Simi and Santa Clarita Valleys, – North to Palmdale, – South to Orange County, – far east to San Bernardino. Americans Face Hard Fights for Opportunities • Bring better life for later generations in democracies. What groups? (4) – Ethnic minorities – Women – Handicapped – Lower income Segregation: • Legal separation of minorities from majority population in – education, – housing, – public locations – marriage Discrimination: • Unequal treatment or barriers against minorities and women in jobs and voting. Rev. Dr. Martin Luther King, Jr.: • One of the significant leaders of the American civil rights movement in the 1950s and 60s. – EC: Used ____ rather than militant violence. – civil disobedience. – EC: His role model was ____, who used the technique in India. – Mohandas Gandhi • Struggled for equal rights for AfricanAmericans and, – later, spoke for other Americans suffering from discrimination and injustice. EC: Women became especially active in US politics in the 1970s: (4) –Equal pay –End of gender-discrimination in jobs (traditional jobs) –Protection against sexual harassment in the workplace. –Gender-equity in the workplace. Western Europe Recovers, Thrives, and Cooperates • Germany: – Late 1940s to 60s—support Germans in quickly and profitably rebuilding a state-ofthe-art economy. • Marshall Plan money and • cheap, Turkish immigrant labor • Konrad Adenauer: – German Chancellor whose leadership made Germany successful, democratically and economically. Britain: – Two wars had weakened the economy….. • Marshall Plan money was not as effective. – King George VI passed away • EC: _____ was crowned in 1953 • Queen Elizabeth II Welfare State: • A mixed-economy nation with high use of social programs to help, and perhaps solve, all social problems in a country. – Positive: (7) – Made living standard better for more people » » » » » » Unemployment insurance Old-age pensions Product safety Affordable prices on basic goods and services Supervision of risky business practices. National healthcare – Negative: (4) – Increased taxes on working, middle, and wealthy classes. » Regulated businesses, reducing their profits » Nationalization of key businesses to prevent risky business practices and keep prices down. » (banks, transportation, utilities) France: – EC: Resisted losing its colonies in ____ and ____ (2) – Indochina – Algeria • resulting in vicious revolts and wars. • French President _______ ended both conflicts by pulling French troops out. • Charles de Gaulle – Vietnam, Laos, Kampuchea, and Algeria won independence by the late 1950s. – Economy socialized in the 1970s – Returned to conservatism in the 2000s as welfare burden became too expensive. more conservative governments took control in Western Europe in the 1990s. • EC: This reaction to liberalism resulted in (3) – Cutting of social programs – Deregulation of businesses and banks – Privatization to cut government costs of running such services. • None have cut the social programs to a level of the United States, however. decolonization • Other Western European nations, gave up their colonies as well: Who? (3) –The Netherlands, –Belgium, –Portugal European Community (EC) • 1957. Began as the European Economic Community (EEC) by West Germany, France, Italy, Luxembourg, Belgium, and the Netherlands. – EC: Goal was for member countries to improve business profits by: (2) • Ending tariffs • Allowing workers and capital to move freely across international borders – Britain and other nations joined later. Gross Domestic Product (GDP): • Total number of goods and services produced in a nation in a one-year period – Japan’s GDP grew rapidly from 1950-1970, – Japan enjoyed economic strength until a recession in the 1990s that continues today. – Japan is still the second wealthiest nation in the World per capita (comparing GDP to population) • China actually earns more, but must divide it by over a billion people. “economic miracles” • Economic recoveries and growth in Germany and Japan were rapid after WW II. • EC: Reasons for Japan’s economic success and power: (3) – Old economic assets totally destroyed by war – Excellent workforce: – Government protection from foreign competition and support of home industries EC Review • Why were so many American men wealthier after WW II? (2) – Savings from wartime jobs – GI Bill • Who were the superpowers? – United States and the Soviet Union • Why was Nikita Khruschev both popular and disliked? (3) – Allowed criticism – Peaceful coexistence – Backed down during the Cuban Missile Crisis Image, p. 513 • Why might suburbs such as this attract families from cities? • Because of the additional living space and the opportunity to own land. US Poverty • large numbers of poor still lived in inner-cities, – By the late 1950s they were becoming depressed, crime-ridden slums. • the millions in rural areas, where poverty grew among – sharecropping families – segregated African-Americans. • Many social problems would erupt in the 1960s and 70s. Materialism • More consumer products and services came into being – Americans made them part of daily life. • EC: American materialist lifestyle was romanticized before international audiences in (7) – – – – – – Popular magazines Newspapers Music, Records Radio Movies Television (a new, quickly spreading medium) Petroleum • American oil companies saved money by getting petroleum from foreign sources, – rather than US sources. • By the 1970s, almost all petroleum was foreign, – Mostly from _____nations in the Persian Gulf. – Arab (Muslim) • EC: Because the US and allies supported _____ against Muslim nations in the October War of the early 1970s, the Muslim oil nations embargoed sales of petroleum to them. • Israel • Oil Supplies fell quickly • Prices rose rapidly – Business and consumer uses fell, causing a severe inflation and recession • It also brought America closer to Muslim nations. • The global economy got more complicated and expensive after that – recessions are more disruptive for the wealthy nations partly because of oil costs. Standards Check, p. 514 • How was the U.S. Economy linked to the broader global economy during the cold war? • The US economy relied on overseas markets • It depended on overseas petroleum significant early changes, • EC; President ____ desegregated the US military. • Truman – caused racist Democrats to stop supporting him, – has not hurt the military. • EC: 1954, US Supreme Court declares segregation laws (sometimes affecting Latinos as well) harmful to citizen’s civil rights – Brown v. Board of Education of Topeka, • and unconstitutional (illegal)….. – forced segregated states to open up. – Racist resistance causes the Federal government to use martial enforcement. Biography, p. 515 • How did King’s actions show courage? • He continually put his life and freedom at risk for his beliefs. Standards Check, p. 516 • Over time, how did the U.S. government expand opportunities for Americans? • US government stepped in to end legal segregation and discrimination • To improve life for veterans, the elderly, and the poor • To expand transportation and housing opportunities. Germany: • recovery – With high taxes, • Germans have a very socially secure population. – As the Cold War died out in the late 1980s, East and West Germany made moves to reunify. – 1989, the ______ fell…..no Communist troops or police stopped it. – Berlin Wall • 1990, all Germans voted for reunification. Primary Source, p. 516: • What challenges would residents of a city face after such heavy destruction? • Loss of electricity • Possible homelessness • Uncertainty about cleaning up and rebuilding EC: Toward European Unity • Another example of European economic cooperation was the ECSC: • European Coal and Steel Community. • Cooperation began in 1952, in the resource-producing nations of (6) – – – – – – West Germany, France, Italy, Luxembourg, Belgium, the Netherlands. • Cooperation brought cheaper cost and higher profits for all members. The EU • EC: This led to the present ____, in the late 1990s; still operating today….. • European Union – Borders no longer exist between member states • Though cultures are preserved – Common currency: Euro-dollar (“Euro”) • Now more powerful than the U.S. dollar. • Talks to unite governments into one “European nation” have not been as successful. Image, p. 517 • Why might East Germany have built a fortified border such as this? • To keep people living in East Germany from escaping and to intimidate their people and the West. Standards Check, p. 519: Advantages • Expanded social benefits • Unemployment insurance Disadvantages • Higher taxes • Government deregulation or control of industry Japan: • Japan was occupied and supervised by the United States from 1945 to 1952: – Gen. _________ personally oversaw the transition to democratic government: – Douglas MacArthur • Emperor declared powerless, – only a symbol of the Japanese people. • MacArthur imposed a democratic constitution: – Parliamentary government, ______, established – Diet » Liberal Democratic Party (LDP) has dominated government, but other parties exist, some threaten its power. » LDP members are in factions, competing for control of the party. – – – – Other reforms (3) public education system for all legal equality for women land reform: much land taken from large landowners and given to landless farmers Image, p. 519: • How would ownership of land benefit farmers? • By giving them a source of capital (wealth) • Japan has been in a recession for almost 20 years • The recent tsunami, and the nuclear reactor disaster was another set back • Japan is still an economic power globally and domestically. – Not without its social issues – Modern Japan (mostly cities and tourist spots: most rebuilt since WW II) Standards Check, p. 520: • Japan's economic success— – – – – US military protection/spending Rebuilt modern industries after war Educated and skilled labor force Strong export market (many countries buy Japanese products) – Government regulation of industry and exports Quick Write • How did West Germany and Japan recover so quickly after the end of WWII? Explain. Journal • Select the U.S., Japan, Britain, or West Germany and write a journal entry from a citizen after the war. Reflect on the changes made during this period and their effect on the nation.