The+Great+Boom,+1880-1920

I.The Great Boom .....A. Latin America experienced a large economic growth ..........1. stimulated by increase demand in industrializing Europe ..........2. US saw increase in raw materials .....B. Well prepared for export-led economic expansion ..........1. liberal ideology ...............a. individual freedom, open market, limited government intervention in the operation of economy ..........2. adopted by middle class and large landowners, miners, and export merchants ..........3. political alliances formed between wealth and new urban elements .....C. expansion in Latin America led by exports ..........1. each nation had a specialty ..........2. high profits led to import of large quantities of foreign goods ...............a. vulnerable and dependent ..........3. could result in rivalry, hostility and even war between neighboring countries ...............a. War of the Pacific (1879-1883)- Chile against Bolivia and Peru .....D.Expansion of trade was incredible ..........1. increased about 50% between 1870 and 1890 ..........2. attracted the interest of foreign investors who wanted high returns on their capital ...............a. railroads, public utilities, and banking ..........3. foreign investors constrained the government in its social, commercial, and diplomatic policies II. Mexico and Argentina: Examples of Economic Transformation .....A. liberal triumphs of Juarez had set stage for economic growth and constitutional government ..........1.Porfirio Diaz elected president and dominated politics ...............a. suppressed regional rebellions and imposed a strong centralized government ...............b. cientificos: advisors who were influenced by positivist ideas and wanted to impose a scientific approach to national economy ..........2. Growth was bought at the expense of large rural peasantry and working classes ...............a. essentially native ...............b. economic expansion at the expense of them created a volatile situation ...............c. strikes and labor unrest increased .....B. Argentina followed a different path of expansion than Mexico ..........1. Buenos Aires had the wealthy Argentines who established themselves as a modern nation ...............a. more than 2 million inhabitants ..........2. Technological changes contributed to prosperity ...............a. refrigerated ships ...............b. by 1914, 1/3 who lived there were foreign born .....C. immigrant flood increased which caused workers to seek political expression ..........1.socialist party formed ..........2. expanding labor force remained unresolved and economy remained closely tied to international market for exports III. Uncle Sam Goes South .....A. Spanish-American War ..........1. opened doors to direct U.S involment in Caribbean .....B. Panama Canal ..........1. U.S intervened in Panamanian movement for independence and it granted U.S extensive rights over Panama Canal

The Great Boom – 1880 – 1920 - Symbolized by economic growth o Due to industrialized Europe and US - Capitalism Accepted for the most part

Countries and Their Original Products - Cuba o Tobacco and sugar - Brazil o Rubber and coffee - Mexico o Henne, Copper, Silver - Argentina o Wool, weat, and beef - Chile o Copper
 * Export prices were determined outside the country (the consumers) and not the countries themselves

War of the Pacific - 1879 – 1883 - Chile vs. Bolivia and Peru - Bolivia lost Antofagasta and became a landlocked nation - Both Bolivian and Peruvian governments fell

“The expansion of Latin American trade increased by about 50% between 1870 and 1890” “Mexican exports doubled between 1877 and 1900”

Mexico - 1876 Porfirio Diaz is elected president o Ruled for 35 years o Strong centralized government o Foreign Capital § Railraod system o US investments in mexico went from 30 million pesos to 1 billion dollars within 30 years. o Scammed, intimidated, and corrupted through political regional bosses o Resulted in Mexican Revolution

US and Latin America - The united states became interested in Latin America after its own civil war. - Dumped more funding and capital into latin American countries. - War with spain (1898) o U.S. vs. Spain (The SPANISH-AMERICAN WAR) § Focused on Cuba and Puerto Rico (last 2 Spanish colonies) § U.S occupied Cuba, Puerto Rico, and the Philippines § U.S. was major market for Cuban sugar § Cuba and Puerto Rico became economically attached to the U.S - Panama Canal (Opened 1914) o Product of supporting a movement for independence in Panama o Pushed foreward by Theodore Roosevelt o Large economic passage and generates millions of dollars - Economically and Politically tied to the United States and some European Powers

MULTIPLE CHOICE

1. The United States intervened and disrupted Latin American politics and economics because ...a. It wanted to spread freedom and peace to its neighbors ...b. It believed in making other countries safe so that it could be safe. ...c. It attempted to become the first capitalist empire, linking itself to LCD's through trade and political agreements, for its own benefit. ...d. It wanted to make a large profit.

2. The economies in Latin American grew in the late 1800's because ...a. They began to build factories and export things themselves ...b. Their governments subsidised industry ...c. The United States and Europe saw Latin American economies and governments as ripe for extortion ...d. The United States gave millions of dollars to Latin American governments to help build up their economy.