Social Studies 10-1: Unit 3 Latest Update Graded A+

Social Studies 10-1: Unit 3 Latest Update Graded A+ Big economic boom example In the 1920s - The rebuild after WWI caused an economic 'boom' around the world. What happened to the economy during the Great Depression? 1929 - USA's stock market crashPre-crash = closest to "true" capitalism Economic interconnectedness = Global recession - Global depression 1930's - banks failed- people lost savings- mass unemployment/poverty- nations turned inwards- high tariffs- world trade nosedived; economic growth stalled Nations turned to economic protectionism (deglobalization) people turned away from globalization essentially John Maynard Keynes' Solution The government should intervene actively in the economy -A reaction to Capitalism An economic downturn: government spending increases (think of the prosperity and recession chart) Hayek's Opposition to Keynes (including Milton Friedman's role) F.A. Hayek distrusted government planning and opposed government control of the economy Milton Friedman was an advisor to Ronald Reagan in the 1970s Both pushed for less government interference in the economy Reactionary: back to capitalism What essentially ended the Great Depression? WW2: Government involvement + war production = global economic recovery. BRETTON WOODS CONFERENCE 1944 (what did it create? what was it designed to save?) In 1944 the Bretton-Woods conference created the World Bank, IMF and a system of international trade. This made it one of the foundations of the establishment of Economic Globalization.