The Industrialized Democracies
The Industrialized Democracies
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
• Increased US military bases around the world brought billions
– 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…..
• 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
• 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
• President Eisenhower’s Interstate Highway Act,
– commuter rail lines
1925 much suburbanization after World War I.
• Railroad developed,
• the river is being controlled
• Still no freeway;
–the main route is San
Looking toward downtown from Elysian Park
(I-5 freeway below).
• This area becomes “old” part of Los
Angeles as people move farther into the
Contemporary view over Studio City.
• Verdugo Hills and Burbank are
far off in the foothills to the
• 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
– west to Simi and Santa Clarita Valleys,
– North to Palmdale,
– South to Orange County,
– far east to San Bernardino.
Americans Face Hard Fights for
• Bring better life for later generations
in democracies. What groups? (4)
– Ethnic minorities
– Lower income
• Legal separation of minorities from
majority population in
– public locations
• Unequal treatment or barriers against
minorities and women in jobs and
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)
–End of gender-discrimination in jobs
–Protection against sexual
harassment in the workplace.
–Gender-equity in the workplace.
Western Europe Recovers,
Thrives, and Cooperates
– 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
– Two wars had weakened the
• Marshall Plan money was not as effective.
– King George VI passed away
• EC: _____ was crowned in 1953
• Queen Elizabeth II
• 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
Affordable prices on basic goods and services
Supervision of risky business practices.
– 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)
– EC: Resisted losing its colonies in ____ and ____ (2)
• 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
– 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.
• Other Western European nations,
gave up their colonies as well: Who?
European Community (EC)
• 1957. Began as the European Economic
Community (EEC) by West Germany,
France, Italy, Luxembourg, Belgium, and
– 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
• China actually earns more, but must divide it by
over a billion people.
• Economic recoveries and growth in
Germany and Japan were rapid after WW
• 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
• 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
– 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.
• large numbers of poor still lived in
– 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.
• 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)
Television (a new, quickly spreading medium)
• American oil companies saved money by getting petroleum from
– 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.
• 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
Standards Check, p. 514
• How was the U.S. Economy linked to the
broader global economy during the cold
• The US economy relied on overseas
• It depended on overseas petroleum
significant early changes,
• EC; President ____ desegregated the US
– 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
– 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
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)
• Cooperation brought cheaper cost and higher profits
for all members.
• EC: This led to the present ____, in the
late 1990s; still operating today…..
• European Union
– Borders no longer exist between member
• 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
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:
• Expanded social benefits
• Unemployment insurance
• Higher taxes
• Government deregulation
or control of industry
• Japan was occupied and supervised by the United
States from 1945 to 1952:
– Gen. _________ personally oversaw the transition to democratic
– Douglas MacArthur
• Emperor declared powerless,
– only a symbol of the Japanese people.
• MacArthur imposed a democratic constitution:
– Parliamentary government, ______, established
» 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
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
– Not without its social issues
– Modern Japan (mostly cities and tourist spots: most rebuilt since
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
– Government regulation of industry and exports
• How did West Germany and Japan
recover so quickly after the end of WWII?
• 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.