International Economic Problems Flashcards
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- The Republican policy of protectionism…
- It did help the US domestic market as…
The Republican policy of protectionism ultimately failed to help the USA’s economy. It did help the US domestic market as it closed off foreign markets when domestic markets had reached saturation point.
Knowledge (1)
-By the early 1930s, despite rising…
By the early 1930s, despite rising unemployment, banks closing and factories stopping production they did not cut tariffs.
Knowledge (2)
-On the other hand however, foreign countries started…
On the other hand however, foreign countries started to put high tariffs on American goods entering their countries which made it harder for American businesses to sell their goods around the world.
Knowledge (3)
-In the immediate aftermath of World War 1…
In the immediate aftermath of World War I, the USA’s economy went from strength-to-strength leaving many with the impression that it would always be like this.
Knowledge (4) & Historiography
- But unfortunately, international debt remained high throughout…
- Eric Rauchway put it “war also changed America, rendering the once peripheral New World”
But unfortunately, international debt remained high throughout the 1920s and historians argue that it was this international debt that lay at the heart of America’s economic problems after 1929. As Eric Rauchway put it, “war also changed American, rendering the once peripheral New World”.
Analysis (1)
-This was important because America became…
This was important because America became the most important power in the world and its actions could dictate the outcomes for other countries like European nations.
Analysis + (2)
-However, as America was a creditor nation…
However, as America was a creditor nation, it continued to lend money to Germany after the war, and through the Dawes and Young plan, the USA was effectively paying Germany to pay them back.
Analysis + (2)
-So American was actually becoming…
So America was actually becoming more and more in debt.
Evaluation (1)
- in evaluation, this was…
- If other countries were struggling economically, it would only be a matter of time before…
In evaluation, this was an important factor for the cause of the great depression as if other countries were struggling economically, it would only be a matter of time before the USA was struggling too.
Evaluation (2)
- However, this was not as important….
- The importance of international problems only…
However, this was not as important as the weakness of the US banking system. The importance of international problems only kicked in after the depression had begun.
Evaluation (3)
-Cutting tariffs on foreign imports could have…
Cutting tariffs on foreign imports could have stimulated world trade and American producers would have had some markets to sell their surplus goods.
Evaluation (4)
-By the end of 1932, 30% of the banks that were…
By the end of 1932, 30% of the banks that were operating in 1929 had declared bankruptcy. The normal banking system almost ceased to exist.
