LA 1820s - Great Depression Flashcards
Why did LA govts struggles w issues related to democracy?
Magnitude of change due to 300 years of colonial rule, and no longer constrained by imperial considerations.
Heavy human capital losses
Heavy human capital losses
Educated skill laborers leaving LA
Participation in LA democracy
Low rates and few could serve as representatives
What encouraged LA constitutions to incorporates some kinds of separation of powers
Watch ing stability of the US
Inspired by the US Bill of Rights; French Declaration of the Rights of Man
Searching for a stable political system
Voters in LA restricted
Free men, min income or occupational status
Excluded all but 5% to 10% of male adults (oligarchy)
Illiterates - up to 90% of Latin American population - denied the vote
Of the countries who held elections (Chile & Uruguay, etc), only __ could vote.
5% of the population could vote; held property; male elites, and they affected elections
Limits on who might be elected
“white” males with property or occupational status
Great wave of immigrants in 19th century were not allowed to participate. Why?
Farmers coming to LA to be able to farm outside their usual conditions in more northern countries. They want to buy their own land back in Europe. Many don’t want to stay in LA.
Could not participate in voting so others could maintain control.
Caudillos
Dictators
(includes military officials)
Symbiotic relationship between Caudillos and
Elites
Caudillos ruled LA contreis for more than 100 years except for
Argentina
Chile
Colombia
Uruguay
Elites give money to Caudillos to protect land and resources and in return
Caudillos provide security
Economic problems related to independence beset LA for years - why?
Organizing after loss of human capital
Lost money after war, exporting and importing was restricted
War led to stealing and destroying crops/food resources
War bonds from British
Short maturities and high interest rates
Result of war bonds from British
LA eventually defaulted
LA after defaulting struggle with
accessing markets and getting more capital
Factor Slowing Economic Recovery: Reason for Mexicans to flood their mines?
So enemies cannot take the minerals, and citizens also cannot access it.
Why did British want to push for freer trade
Because they are the most competitive/advanced and can produce more efficiently as long as they have the raw materials. Want other countries to open their markets.
LA Comparative Advantage to British is
their raw materials that the British need
Labor scarcity in Europe
Malthusian Trap
When the British pound was backed by
gold.
The Gold standard beginning in the 1870s.
Malthusian Trap
Population grows geometrically and food supply grows arithmetically. Food cannot keep up with population. Famine and huger scarcity.
Currency Increase
Gold Inflow (more exports over imports)
Currency Decrease
Gold Outflow (more imports over exports)
Collapse of the Gold Standard
Countries at war in WW1 refuse to give up gold and comply with the standard
Countries seeking to pay soldiers
Squeezing debts of LA countries
Currency convertibility suspended by countries at war - why?
Due to unstability. Limited imports and exports due to war. Lack of money outside war efforts.
Leading to bartering.
Dollar Diplomacy / Gunboat Diplomacy
US used economic power to expand military influence in other countries. Wants control over LA (whether it is land or resources)
Unconscious Import Substitution Industrialization (ISI)
LA focuses on import substitutions during WW1.
Producing goods for your domestic market that you previously imported.
