Preview: Chapter 17 The West Between the Wars 1919-1939
Section 1 Uneasy Peace, Uncertain Security
A Weak League of Nations
The Treaty of Locarno
Reading Check
Explaining
Why was the League of Nations unable to maintain peace?
The Great Depression
The post-war prosperity did not last. At the end of the 1920s, an economic crisis began in the United States and spread to the rest of the world, leaving almost no corner untouched.
Causes of the Depression
The wealth created during the 1920s in the United States was not shared evenly. Farmers and unskilled workers were on the losing end. Though demand for raw materials and agricultural products had skyrocketed during the war, demand dwindled and prices fell after the war. Farmers, miners and other suppliers of raw materials suffered. Because they earned less, they bought less. At the same time, better technology allowed factories to make more products faster. This led to overproduction, a condition in which the production of goods exceeds the demand for them. As demand slowed, factories cut back on production and workers lost their jobs.
Meanwhile, a crisis in finance—the management of money matters, including the circulation of money, loans, investments, and banking—was brewing. Few saw the danger. Prices on the New York Stock Exchange were at an all-time high. Eager investors acquired stocks through risky methods. To slow the run on the stock market, the Federal Reserve, the central banking system of the United States, which regulates banks, raised interest rates in 1928 and again 1929. It didn’t work. Instead, the higher interest rates made people nervous about borrowing money and investing, thereby hurting demand.
In the autumn of 1929, jitters about the economy caused many people to sell their stocks at once. Financial panic set in. Stock prices crashed, wiping out the fortunes of many investors. The Great Depression, a painful time of global economic collapse, had begun quietly in the summer of 1929 with decreasing production. The October stock market crash aggravated the economic decline.
Responses to the Depression
In 1931, the Federal Reserve again increased the interest rate, with an even more disastrous effect. As people bought and invested less, businesses closed and banks failed, throwing millions out of work. The cycle spiraled steadily downward. The jobless could not afford to buy goods, so more factories had to close, which in turn increased unemployment. People slept on park benches and lined up to eat in soup kitchens.
The economic problems quickly spread around the world. American banks stopped making loans abroad and demanded repayment of foreign loans. Without support from the United States, Germany suffered. It could not make its reparations payments. France and Britain were not able to make their loan payments.
Desperate governments tried to protect their economies from foreign competition. The United States imposed the highest tariffs in its history. The policy backfired when other nations retaliated by raising their tariffs. In 1932 and 1933, global world trade sank to its 1900 level. As you have read, the Great Depression spread misery from the industrial world to Latin America, Africa, and Asia.
Reading Check
Summarizing
What were the results of the Great Depression?
Democratic States After the War
Note Taking
Reading Skill: Identify Main Ideas
Record main ideas from this section in a table like the one below.
In 1919, the three Western democracies—Britain, France, and the United States—appeared powerful. They had ruled the Paris Peace Conference and boosted hopes for democracy among the new nations of Eastern Europe. Beneath the surface, however, postwar Europe faced grave problems. To make matters worse, many members of the younger generation who might have become the next great leaders had been killed in the war.
At first, the most pressing issues were finding jobs for returning veterans and rebuilding war-ravaged lands. Economic problems fed social unrest and made radical ideas more popular.
In addition to problems at home, the three democracies faced a difficult international situation. The peace settlements caused friction, especially in Germany and among some ethnic groups in Eastern Europe.
Germany
From its headquarters in Geneva, Switzerland, the League of Nations encouraged cooperation and tried to get members to make a commitment to stop aggression. In 1926, after signing the Locarno agreements, Germany joined the League. Later, the Soviet Union was also admitted.
France
Like Britain, France emerged from World War I both a victor and a loser. Political divisions and financial scandals plagued the government of the Third Republic. Several parties—from conservatives to communists—competed for power. The parties differed on many issues, including how to get reparations payments from Germany. A series of quickly changing coalition governments ruled France.
France’s chief concern after the war was securing its borders against Germany. The French remembered the German invasions of 1870 and 1914. To prevent a third invasion, France built massive fortifications called the Maginot Line along its border with Germany. However, the line would not be enough to stop another German invasion in 1940.
In its quest for security, France also strengthened its military and sought alliances with other countries, including the Soviet Union. It insisted on strict enforcement of the Versailles treaty and complete payment of reparations. France’s goal was to keep the German economy weak.
Great Britain
Britain disagreed with this aim. Almost from the signing of the Treaty of Versailles, British leaders wanted to relax the treaty’s harsh treatment of Germany. They feared that if Germany became too weak, the Soviet Union and France would become too powerful.
In Britain during the 1920s, the Labour party surpassed the Liberal party in strength. The Labour party gained support among workers by promoting a gradual move toward socialism. The Liberal party passed some social legislation, but it traditionally represented middle-class business interests. As the Liberal party faltered, the middle class began to back the Conservative party, joining the upper class, professionals, and farmers. With this support, the Conservative party held power during much of 1920s. After a massive strike of over three million workers in 1926, Conservatives passed legislation limiting the power of workers to strike.
Britain still faced the “Irish question.” In 1914, Parliament passed a home-rule bill that was shelved when the war began. On Easter 1916, a small group of militant Irish nationalists launched a revolt against British rule. Although the Easter Rising was quickly suppressed, it stirred wider support for the Irish cause. When Parliament again failed to grant home rule in 1919, members of the Irish Republican Army (IRA) began a guerrilla war against British forces and their supporters. In 1922, moderates in Ireland and Britain reached an agreement. Most of Ireland became the self-governing Irish Free State. The largely Protestant northern counties remained under British rule. However, the IRA and others fought for decades against the division.
Ireland 1916 - The Easter Rising, 4:45
The Irish Resist
Members of the Irish Republican Army prepare to resist the British occupation of Dublin in 1921 by erecting a barbed wire barricade. The Irish Free State, established in 1922, was a compromise between the opposing sides, but peace was short-lived. The conflict has continued since that time.
The United States
In contrast, the United States emerged from World War I in good shape. A late entrant into the war, it had suffered relatively few casualties and little loss of property. However, the United States did experience some domestic unrest. Fear of radicals and the Bolshevik Revolution in Russia set off a “Red Scare” in 1919 and 1920. Police rounded up suspected foreign-born radicals, and a number were expelled from the United States.
The “Red Scare” fed growing demands to limit immigration. Millions of immigrants from southern and eastern Europe had poured into the United States between 1890 and 1914. Some native-born Americans sought to exclude these newcomers, whose cultures differed from those of earlier settlers from northern Europe. In response, Congress passed laws limiting immigration from Europe. Earlier laws had already excluded or limited Chinese and Japanese immigration.
Reading Check
Explaining
What did John Maynard Keynes think would resolve the Great Depression?
John Maynard Keynes and the Great Depression, 2:10
After tonight, do not do any HW or school work so that you can attend church services during the Easter holiday.
Wednesday: p. 528, #13-16
Also, email me with your opinion when we should take the Ch. 16 Test; the day we return, two days after we return following the break, or whatever. I will then tabulate the results and announce the Test date.
Thursday: (Actually, not due until the first day back after the break), p. 528, #17-19
Friday: (Actually, not due until the second day back after the break), p. 532, History and You (either diagram or more simply just make a list as a reference)
“Democratic Senator: Health Care Law to Address ‘Mal-Distribution of Income’”
“After the Senate passed a “fix-it” bill Thursday to make changes to the new health care law, Sen. Max Baucus, D-Mont., chairman of the influential Finance Committee, said the overhaul was an “income shift” to help the poor.
The Senator stated that the legislation would address the “mal-distribution of income in America.”
“Too often, much of late, the last couple three years, the mal-distribution of income in American is gone up way too much,” he said. “Wages have not kept up with increased income of the highest income in America. This legislation will have the effect of addressing that mal-distribution of income in America.”
Democratic Governor Howard Dean states that Health Care/Tax is to Redistribute Wealth.
We will pick up where we left off in Chapter 23.
Chapter Overview
This chapter discusses how the federal government is financed and includes material on public choice. Different approaches to a balanced budget are described as is the role of the Federal Reserve. The federal government budget deficit’s relationship to the trade deficit is explained, as are the implications of deficit financing in an open economy. The chapter concludes with a section on the burden of the public debt, considering to whom it is owed, the interest paid on it, and the crowding out effect.
Chapter Outline
Public Choice Analysis
Approaches to Federal Finance
Annually Balanced Budget
Cyclically Balanced Budget
Reagan on Balanced Budget, :31
Functional Finance
Checkpoint: Financing the Federal Government
Financing Debt and Deficits
The Government Budget Constraint
The Role of the Federal Reserve
Thomas E. Woods, The Economic crisis & The Federal Reserve, 5:24
Budget and Trade Deficits
Implications of Deficit Financing in an Open Economy
Checkpoint: Financing Debt and Deficits
The Burden of the Public Debt
Internally versus Externally Held Debt
Interest Payments
Crowding-Out Effect
Crowding Out & Lags, 5:52
Public Investment and Crowding Out, 7:07
Does the economy self-adjust? If so, what is the role for the government if the economy is not where we'd like it to be? This video takes a brief look at two different schools of economic thought.
Intergenerational Burdens of Fiscal Policy
Fiscal Sustainability of the Federal Budget
Checkpoint: The Burden of the Public Debt
How Much Debt Can We Carry?
Ideas for Capturing Your Classroom Audience
Exactly how large is the national debt? Find out at the Web site called The Debt
to the Penny, which is part of the site of the U.S. Department of the Treasury. The site is located at: http://www.treasurydirect.gov/NP/BPDLogin?application=np.
Your students may be creditors of the U.S. government! Show them how to
assess the value of any U.S. savings bonds they may have been given over time
on the Web site at: http://www.treasurydirect.gov/indiv/tools/ tools_
savingsbondcalc.htm.
For data and other information on the government's budget, visit the sites of the
Office of Management and Budget at: http://www.whitehouse.gov/omb/ and the
Congressional Budget Office at: http://www.cbo.gov/.
Chapter Checkpoints
Financing the Federal Government
Question: Is the absolute size of the national debt or the national debt as a percent of gross domestic product the best measure of its importance to our economy? Why?
The point is to check that students can: comprehend that the amount a country
owes should be viewed in terms of its national output or income, GDP.
Financing Debt and Deficits
Question: Assume the federal government decided to increase spending and lower
tax rates.running ever larger deficits.and got the Federal Reserve to agree to buy
all of the new bonds that the Treasury issued. What would be the impact on our
economy?
The point is to check that students can: integrate the material in the chapter with the effect on the economy when the Fed buys bonds (from previous chapters).
The Burden of the Public Debt
Question: Is crowding-out an inevitable result of deficit spending if the Federal
Reserve does not buy back an equivalent amount from the market?
The point is to check that students can: understand the different impacts of deficit spending when the economy is slack as opposed to when it is at or close to full employment.
Extended Example in the Chapter
How Much Debt Can We Carry?
Alan Greenspan, former Chairman of the Federal Reserve Board, cautioned about
the future threat from growing budget deficits, and at other times backed away from that position. The reason seems to be that his views changed as to how much debt the government can comfortably take on. The higher level of that “danger point” may in part be due to lower interest rates and improved financial markets.
This section references an article by Edmund Andrews titled “Greenspan Shifts
View on Deficits,” from The New York Times (March 16, 2004, pages A1 and C2).
Examples Used in the End-of-Chapter Questions
Question 3 refers to the Laffer curve. You may wish to review the material from the chapter on fiscal policy.
Question 5 references the history of the U.S. government’s budget position, noting
that it has been in surplus on average about one year in every decade. You can illustrate the history of the deficit with the graph from the Web at:
http://www.uuforum.org/deficit.htm.
Question 11 references an open letter from Ben Stein to Henry Paulson after
Paulson was appointed as U.S. Treasury Secretary. The piece is titled “Everybody’s
Business: Note to the New Treasury Secretary: It’s Time to Raise Taxes,” and it
appeared in The New York Times on June 15, 2006. For more on Secretary Paulson,
see the Web site of the U.S. Department of Treasury at: http://www.ustreas.gov/.
Question 14 refers to the roles of Congress and the Executive Branch in managing
the budget. For more about the agencies involved, visit the sites of the Office of
Management and Budget at: http://www.whitehouse.gov/omb/ and the Congressional
Budget Office at: http://www.cbo.gov/.
For Further Analysis
Understanding Crowding-Out
This example can be used as an in-class small group exercise or as an individual inclass exercise. It is designed to complement the text’s material on crowding-out by examining the effect of the deficit on interest rates through the workings of the money market and the bond market. This treatment ties the topic back to the analysis used in Chapter 21, and you may wish to expand the assignment by delving more deeply into the effects in the money market.
Web-Based Exercise
This example can be used as a small group exercise or as an individual exercise.
The exercise provides an opportunity for students to apply the material in the chapter about the Federal Reserve and the government’s budget deficit to an analysis of comments by the current Fed Chairman, Ben Bernanke. The third question provides an opportunity to reinforce students’ understanding of the role of the Fed with regard to Congress and the Executive Branch.
Boomers and the Budget Deficit
In an AP story from January 18, 2007, titled “Bernanke Warns of ‘Vicious Cycle’ in
Deficits: Wave of Retiring Boomers Will Put Growing Strain on Budget, Fed Chief
Says” (available on the MSNBC site at http://www.msnbc.msn.com/id/16688089/)
the Fed Chairman outlines his concerns about future deficits. (Note that he was testifying to the Senate Budget Committee.)
After reading the article, answer the following:
1) Why is the retirement of the baby boomers a problem for the budget deficit?
2) What is the “vicious cycle” about which Bernanke is concerned?
3) What suggestions, if any, does Bernanke make about what Congress and the
administration should do?
Tips from a Colleague
Students are often unclear about the relationship between an annual budget deficit
and the accumulated debt. Using data to illustrate the changes that have occurred
over time helps clarify this. Also, students are not likely to grasp how much they
hear about the deficit at any point in time is based on projections. Comparing the
information on the Web sites of the Office of Management and Budget and the
Congressional Budget Office can point out the differing assumptions being made.
Finally, be sure that students understand the process. The media give presidents too much credit and too much blame.
Email HW to gmsmith@shanahan.org
After tonight, do not do any HW or school work so that you can attend church services during the Easter holiday.
1. Be sure to review Chapters 20-22 (we will have Tests on this material as well, TBA). Some students have asked to be tested as close as possible after covering the material.
2. Answer Questions and Problems, #11-15, p. 618.
3. As review for HW, typical questions that you may encounter on the actual AP Economics Macro Test are included daily:
Economic Growth and productivity, Review Questions
Free-Response Question
Economists believe that high budget deficits today will reduce the rate of growth of the economy in the future. Why? Does it matter what causes the high budget deficits?
Chechnya is predominantly Muslim. Most of the Chechens belong to the Shafi`i school of thought of Sunni Islam.
In addition, the government of Indonesia uses this school of thought for the Indonesian compilation of sharia law. It is the dominant school of not only Chechnya but also in Syria, Palestinian Territories, Lebanon, United Arab Emirates, Kurdistan, Egypt, Djibouti, Eritrea, Somalia, Yemen, Sudan, Maldives, Singapore, Malaysia, Brunei Darussalam, and Indonesia.
CNN's Atika Shubert looks at a possible Chechen connection to attacks in Russia, including twin subway blasts.
This cartoon portrays one view of the peace treaties that ended World War I.
* The turkey symbolizes Germany.
* Britain holds a carving knife and fork, ready to carve the turkey.
* Other Allies await the feast.
1. What does carving up the turkey symbolize?
2. What attitude do you think that the cartoonist has towards the treaties?
Preview: Chapter 17 The West Between the Wars 1919-1939
This haunting photograph shows a farmer ruined by the dustbowl of 1936. A woman and nursing child, possibly part of his family, sit behind him under a makeshift shelter.
In Dorothea Lange’s famous 1936 photo Migrant Mother, Nipomo, California, a mother looks into the future with despair. She migrated to escape scenes like the one below, where huge dust storms buried farm equipment in Dallas, Texas. How did geography help aggravate the depression in the United States?
The Great Flu Epidemic
Hospitals "Full-Up": The 1918 Influenza Pandemic, 8:24
A documentary comparing the 1918 Spanish Influenza pandemic with modern-day health capabilities, in the event of an act of bioterrorism or any large-scale infectious disease outbreak.
Section 1
The peace settlement at the end of World War I left many nations unhappy and border disputes simmering throughout Europe. The League of Nations proved a weak institution. Democracy was widespread, and women in many European countries gained the right to vote. However, economic problems plagued France, Great Britain, and the German Weimar Republic. When Germany declared that it could not continue to pay reparations, France occupied one German region as a source of reparations. An American plan reduced the burden of reparations and led to a period of prosperity and American investment in Europe. The prosperity ended with the economic collapse of 1929 and the Great Depression. European governments tried different approaches to ending the depression. Many middle-class Germans began to identify with anti-democratic political parties. The new American president, Franklin Delano Roosevelt, pursued a policy of active government intervention in the economy that came to be known as the New Deal.
League of Nations, 2:52
Uneasy Peace, Uncertain Security
A Weak League of Nations
The peace was fragile. Although the Kellogg-Briand Pact outlawed war, it provided no way of enforcing the ban. The League of Nations, too, was powerless to stop aggression. In 1931, the League vigorously condemned Japan’s invasion of Manchuria, but did not take military action to stop it. Ambitious dictators in Europe noted the League’s weakness and began to pursue aggressive foreign policies.
Analyzing Political Cartoons
An End to War?
The Kellogg-Briand Pact raised hopes for an end to war. But not everyone was so optimistic, as this 1929 American cartoon shows.
*Kellogg-Briand Pact framed as a fire insurance policy
*Adequate navy as a fire extinguisher
*Uncle Sam looking at both
1. Do you think that the cartoonist feels that a fire insurance policy is enough to prevent a fire?
2. What point do you think the cartoonist is making about the Kellogg-Briand Pact?
French Demands
Inflation in Germany
The Treaty of Locarno
The Locarno Treaties and Germany's Entry into the League, :59
Despite disagreements, many people worked for peace in the 1920s. Hopes soared in 1925 when representatives from seven European nations signed a series of treaties at Locarno, Switzerland. These treaties settled Germany’s disputed borders with France, Belgium, Czechoslovakia, and Poland. The Locarno treaties became the symbol of a new era of peace.
The Kellogg-Briand Pact, which was sponsored by the United States in 1928, echoed the hopeful “spirit of Locarno.” Almost every independent nation signed this agreement, promising to “renounce war as an instrument of national policy.” In this optimistic spirit, the great powers pursued disarmament, the reduction of armed forces and weapons. The United States, Britain, France, Japan, and other nations signed treaties to reduce the size of their navies. However, they failed to agree on limiting the size of their armies.
Reading Check
Explaining
Why was the League of Nations unable to maintain peace?
The Great Depression
The post-war prosperity did not last. At the end of the 1920s, an economic crisis began in the United States and spread to the rest of the world, leaving almost no corner untouched.
Causes of the Depression
The wealth created during the 1920s in the United States was not shared evenly. Farmers and unskilled workers were on the losing end. Though demand for raw materials and agricultural products had skyrocketed during the war, demand dwindled and prices fell after the war. Farmers, miners and other suppliers of raw materials suffered. Because they earned less, they bought less. At the same time, better technology allowed factories to make more products faster. This led to overproduction, a condition in which the production of goods exceeds the demand for them. As demand slowed, factories cut back on production and workers lost their jobs.
Meanwhile, a crisis in finance—the management of money matters, including the circulation of money, loans, investments, and banking—was brewing. Few saw the danger. Prices on the New York Stock Exchange were at an all-time high. Eager investors acquired stocks through risky methods. To slow the run on the stock market, the Federal Reserve, the central banking system of the United States, which regulates banks, raised interest rates in 1928 and again 1929. It didn’t work. Instead, the higher interest rates made people nervous about borrowing money and investing, thereby hurting demand.
In the autumn of 1929, jitters about the economy caused many people to sell their stocks at once. Financial panic set in. Stock prices crashed, wiping out the fortunes of many investors. The Great Depression, a painful time of global economic collapse, had begun quietly in the summer of 1929 with decreasing production. The October stock market crash aggravated the economic decline.
Responses to the Depression
In 1931, the Federal Reserve again increased the interest rate, with an even more disastrous effect. As people bought and invested less, businesses closed and banks failed, throwing millions out of work. The cycle spiraled steadily downward. The jobless could not afford to buy goods, so more factories had to close, which in turn increased unemployment. People slept on park benches and lined up to eat in soup kitchens.
The economic problems quickly spread around the world. American banks stopped making loans abroad and demanded repayment of foreign loans. Without support from the United States, Germany suffered. It could not make its reparations payments. France and Britain were not able to make their loan payments.
Desperate governments tried to protect their economies from foreign competition. The United States imposed the highest tariffs in its history. The policy backfired when other nations retaliated by raising their tariffs. In 1932 and 1933, global world trade sank to its 1900 level. As you have read, the Great Depression spread misery from the industrial world to Latin America, Africa, and Asia.
Reading Check
Summarizing
What were the results of the Great Depression?
Democratic States After the War
Note Taking
Reading Skill: Identify Main Ideas
Record main ideas from this section in a table like the one below.
In 1919, the three Western democracies—Britain, France, and the United States—appeared powerful. They had ruled the Paris Peace Conference and boosted hopes for democracy among the new nations of Eastern Europe. Beneath the surface, however, postwar Europe faced grave problems. To make matters worse, many members of the younger generation who might have become the next great leaders had been killed in the war.
At first, the most pressing issues were finding jobs for returning veterans and rebuilding war-ravaged lands. Economic problems fed social unrest and made radical ideas more popular.
In addition to problems at home, the three democracies faced a difficult international situation. The peace settlements caused friction, especially in Germany and among some ethnic groups in Eastern Europe.
Germany
From its headquarters in Geneva, Switzerland, the League of Nations encouraged cooperation and tried to get members to make a commitment to stop aggression. In 1926, after signing the Locarno agreements, Germany joined the League. Later, the Soviet Union was also admitted.
France
Like Britain, France emerged from World War I both a victor and a loser. Political divisions and financial scandals plagued the government of the Third Republic. Several parties—from conservatives to communists—competed for power. The parties differed on many issues, including how to get reparations payments from Germany. A series of quickly changing coalition governments ruled France.
France’s chief concern after the war was securing its borders against Germany. The French remembered the German invasions of 1870 and 1914. To prevent a third invasion, France built massive fortifications called the Maginot Line along its border with Germany. However, the line would not be enough to stop another German invasion in 1940.
In its quest for security, France also strengthened its military and sought alliances with other countries, including the Soviet Union. It insisted on strict enforcement of the Versailles treaty and complete payment of reparations. France’s goal was to keep the German economy weak.
Great Britain
Britain disagreed with this aim. Almost from the signing of the Treaty of Versailles, British leaders wanted to relax the treaty’s harsh treatment of Germany. They feared that if Germany became too weak, the Soviet Union and France would become too powerful.
In Britain during the 1920s, the Labour party surpassed the Liberal party in strength. The Labour party gained support among workers by promoting a gradual move toward socialism. The Liberal party passed some social legislation, but it traditionally represented middle-class business interests. As the Liberal party faltered, the middle class began to back the Conservative party, joining the upper class, professionals, and farmers. With this support, the Conservative party held power during much of 1920s. After a massive strike of over three million workers in 1926, Conservatives passed legislation limiting the power of workers to strike.
Britain still faced the “Irish question.” In 1914, Parliament passed a home-rule bill that was shelved when the war began. On Easter 1916, a small group of militant Irish nationalists launched a revolt against British rule. Although the Easter Rising was quickly suppressed, it stirred wider support for the Irish cause. When Parliament again failed to grant home rule in 1919, members of the Irish Republican Army (IRA) began a guerrilla war against British forces and their supporters. In 1922, moderates in Ireland and Britain reached an agreement. Most of Ireland became the self-governing Irish Free State. The largely Protestant northern counties remained under British rule. However, the IRA and others fought for decades against the division.
Ireland 1916 - The Easter Rising, 4:45
The Irish Resist
Members of the Irish Republican Army prepare to resist the British occupation of Dublin in 1921 by erecting a barbed wire barricade. The Irish Free State, established in 1922, was a compromise between the opposing sides, but peace was short-lived. The conflict has continued since that time.
The United States
In contrast, the United States emerged from World War I in good shape. A late entrant into the war, it had suffered relatively few casualties and little loss of property. However, the United States did experience some domestic unrest. Fear of radicals and the Bolshevik Revolution in Russia set off a “Red Scare” in 1919 and 1920. Police rounded up suspected foreign-born radicals, and a number were expelled from the United States.
The “Red Scare” fed growing demands to limit immigration. Millions of immigrants from southern and eastern Europe had poured into the United States between 1890 and 1914. Some native-born Americans sought to exclude these newcomers, whose cultures differed from those of earlier settlers from northern Europe. In response, Congress passed laws limiting immigration from Europe. Earlier laws had already excluded or limited Chinese and Japanese immigration.
Reading Check
Explaining
What did John Maynard Keynes think would resolve the Great Depression?
John Maynard Keynes and the Great Depression, 2:10
Chapter Overview
This chapter discusses how the federal government is financed and includes material on public choice. Different approaches to a balanced budget are described as is the role of the Federal Reserve. The federal government budget deficit’s relationship to the trade deficit is explained, as are the implications of deficit financing in an open economy. The chapter concludes with a section on the burden of the public debt, considering to whom it is owed, the interest paid on it, and the crowding out effect.
Chapter Outline
Public Choice Analysis
Approaches to Federal Finance
Annually Balanced Budget
Cyclically Balanced Budget
Reagan on Balanced Budget, :31
Functional Finance
Checkpoint: Financing the Federal Government
Financing Debt and Deficits
The Government Budget Constraint
The Role of the Federal Reserve
Thomas E. Woods, The Economic crisis & The Federal Reserve, 5:24
Budget and Trade Deficits
Implications of Deficit Financing in an Open Economy
Checkpoint: Financing Debt and Deficits
The Burden of the Public Debt
Internally versus Externally Held Debt
Interest Payments
Crowding-Out Effect
Crowding Out & Lags, 5:52
Public Investment and Crowding Out, 7:07
Does the economy self-adjust? If so, what is the role for the government if the economy is not where we'd like it to be? This video takes a brief look at two different schools of economic thought.
Intergenerational Burdens of Fiscal Policy
Fiscal Sustainability of the Federal Budget
Checkpoint: The Burden of the Public Debt
How Much Debt Can We Carry?
Ideas for Capturing Your Classroom Audience
Exactly how large is the national debt? Find out at the Web site called The Debt
to the Penny, which is part of the site of the U.S. Department of the Treasury. The site is located at: http://www.treasurydirect.gov/NP/BPDLogin?application=np.
Your students may be creditors of the U.S. government! Show them how to
assess the value of any U.S. savings bonds they may have been given over time
on the Web site at: http://www.treasurydirect.gov/indiv/tools/ tools_
savingsbondcalc.htm.
For data and other information on the government's budget, visit the sites of the
Office of Management and Budget at: http://www.whitehouse.gov/omb/ and the
Congressional Budget Office at: http://www.cbo.gov/.
Chapter Checkpoints
Financing the Federal Government
Question: Is the absolute size of the national debt or the national debt as a percent of gross domestic product the best measure of its importance to our economy? Why?
The point is to check that students can: comprehend that the amount a country
owes should be viewed in terms of its national output or income, GDP.
Financing Debt and Deficits
Question: Assume the federal government decided to increase spending and lower
tax rates.running ever larger deficits.and got the Federal Reserve to agree to buy
all of the new bonds that the Treasury issued. What would be the impact on our
economy?
The point is to check that students can: integrate the material in the chapter with the effect on the economy when the Fed buys bonds (from previous chapters).
The Burden of the Public Debt
Question: Is crowding-out an inevitable result of deficit spending if the Federal
Reserve does not buy back an equivalent amount from the market?
The point is to check that students can: understand the different impacts of deficit spending when the economy is slack as opposed to when it is at or close to full employment.
Extended Example in the Chapter
How Much Debt Can We Carry?
Alan Greenspan, former Chairman of the Federal Reserve Board, cautioned about
the future threat from growing budget deficits, and at other times backed away from that position. The reason seems to be that his views changed as to how much debt the government can comfortably take on. The higher level of that “danger point” may in part be due to lower interest rates and improved financial markets.
This section references an article by Edmund Andrews titled “Greenspan Shifts
View on Deficits,” from The New York Times (March 16, 2004, pages A1 and C2).
Examples Used in the End-of-Chapter Questions
Question 3 refers to the Laffer curve. You may wish to review the material from the chapter on fiscal policy.
Question 5 references the history of the U.S. government’s budget position, noting
that it has been in surplus on average about one year in every decade. You can illustrate the history of the deficit with the graph from the Web at:
http://www.uuforum.org/deficit.htm.
Question 11 references an open letter from Ben Stein to Henry Paulson after
Paulson was appointed as U.S. Treasury Secretary. The piece is titled “Everybody’s
Business: Note to the New Treasury Secretary: It’s Time to Raise Taxes,” and it
appeared in The New York Times on June 15, 2006. For more on Secretary Paulson,
see the Web site of the U.S. Department of Treasury at: http://www.ustreas.gov/.
Question 14 refers to the roles of Congress and the Executive Branch in managing
the budget. For more about the agencies involved, visit the sites of the Office of
Management and Budget at: http://www.whitehouse.gov/omb/ and the Congressional
Budget Office at: http://www.cbo.gov/.
For Further Analysis
Understanding Crowding-Out
This example can be used as an in-class small group exercise or as an individual inclass exercise. It is designed to complement the text’s material on crowding-out by examining the effect of the deficit on interest rates through the workings of the money market and the bond market. This treatment ties the topic back to the analysis used in Chapter 21, and you may wish to expand the assignment by delving more deeply into the effects in the money market.
Web-Based Exercise
This example can be used as a small group exercise or as an individual exercise.
The exercise provides an opportunity for students to apply the material in the chapter about the Federal Reserve and the government’s budget deficit to an analysis of comments by the current Fed Chairman, Ben Bernanke. The third question provides an opportunity to reinforce students’ understanding of the role of the Fed with regard to Congress and the Executive Branch.
Boomers and the Budget Deficit
In an AP story from January 18, 2007, titled “Bernanke Warns of ‘Vicious Cycle’ in
Deficits: Wave of Retiring Boomers Will Put Growing Strain on Budget, Fed Chief
Says” (available on the MSNBC site at http://www.msnbc.msn.com/id/16688089/)
the Fed Chairman outlines his concerns about future deficits. (Note that he was testifying to the Senate Budget Committee.)
After reading the article, answer the following:
1) Why is the retirement of the baby boomers a problem for the budget deficit?
2) What is the “vicious cycle” about which Bernanke is concerned?
3) What suggestions, if any, does Bernanke make about what Congress and the
administration should do?
Tips from a Colleague
Students are often unclear about the relationship between an annual budget deficit
and the accumulated debt. Using data to illustrate the changes that have occurred
over time helps clarify this. Also, students are not likely to grasp how much they
hear about the deficit at any point in time is based on projections. Comparing the
information on the Web sites of the Office of Management and Budget and the
Congressional Budget Office can point out the differing assumptions being made.
Finally, be sure that students understand the process. The media give presidents too much credit and too much blame.
Email HW to gmsmith@shanahan.org
1. Be sure to review Chapters 20-22 (we will have Tests on this material as well, TBA). Some students have asked to be tested as close as possible after covering the material.
2. Answer Questions and Problems, #6-10, p. 617.
3. As review for HW, typical questions that you may encounter on the actual AP Economics Macro Test are included daily:
Economic Growth and productivity, Review Questions
5. To determine the change in the capital stock, the level of gross investment must be adjusted for depreciation because some new investment
a) is not used immediately
b) replaces existing, but worn out, capital
c) replaces existing workers
d) is more efficient than existing capital
e) is usually unproductive
6. Human capital consists of
a) machines that require workers in order to produce most efficiently
b) any production technique developed by humans
c) workers' education and skills
d) workers in factories
e) workers who can be used instead of machines
7. A rapid increase in population will result in
a) an increase in real GDP and per capita GDP
b) an increase in real GDP, but a decrease in per capita GDP
c) a decrease in real GDP, but an increase in per capita GDP
d) a decrease in both real GDP and per capita GDP
e) no change in per capita GDP, but a decrease in real GDP
8. One way that a government can encourage economic growth is by encouraging
a) population growth
b) consumption
c) saving and investment
d) imports
e) accumulation of wealth
Social trends in the mid-1800s in France are readily apparent in the works of many of the impressionist artists. The work of Edgar Degas is a good example. In this activity you will learn about impressionism and about the contribution of Degas to a new style in painting and sculpture.
Edgar Degas
Directions
* Read the information on the Web site about Degas. Take notes as you read.
* Click on “Life” and read the information.
* Go back and click on “Artistic Styles.” Read the information.
* Click on two of Degas’ paintings and review his works.
Use the information you found to answer the following questions. Cf. http://glencoe.mcgraw-hill.com/sites/0078799813/student_view0/unit4/chapter20/student_web_activities.html#
Be sure to fill in the information after the exercise: your name, your email, and email to the correct address: gmsmith@shanahan.org.
Fill out the "Theodore Roosevelt Hand-out" as HW. Cf. http://gmicksmithsocialstudies.blogspot.com/2010/02/wh-ii-honors-theodore-roosevelt-hand.html.
The Sepoy Mutiny
Infographic
The Sepoy Rebellion
Go Online
For: Audio guided tour
Visit: PHSchool.com
Web Code: nap-2441
1. How was the Sepoy Rebellion a clash of cultures?
2. Which regions were most greatly affected by the Sepoy Rebellion?
Growing Discontent
In the 1850s, the East India Company made several unpopular moves. First, it required sepoys (see poyz), or Indian soldiers in its service, to serve anywhere, either in India or overseas. For high-caste Hindus, however, overseas travel was an offense against their religion. Second, the East India Company passed a law that allowed Hindu widows to remarry. Hindus viewed both moves as a Christian conspiracy to undermine their beliefs.
Then, in 1857, the British issued new rifles to the sepoys. Troops were told to bite off the tips of cartridges before loading them into the rifles. The cartridges, however, were greased with animal fat—either from cows, which Hindus considered sacred, or from pigs, which were forbidden to Muslims. When the troops refused the order to “load rifles,” they were imprisoned.
p. 434, Questions, #4-6, 8.
p. 442, Questions, #4-6, 8.
Monday: p. 452, Questions, #4-6, 8-9.
Tuesday: p. 460, Using Key Terms, #1-10. You just need to find the correct word; there is no need to write the entire sentence.
Wednesday: p. 471, #4-6, 8-9.
Thursday: p. 478, p. #4-6, 8-9; Preview Questions, p. 479, #1-2.
Dissident Republicans are being blamed for a mortar device that missed Craigavon RUC barracks & Rioting that followed in the Craigavon area, the RUC fired 3 baton rounds at the rioters.
On Easter 1916, a small group of militant Irish nationalists launched a revolt against British rule; their remnants can be seen in the IRA, the Irish Republican Army.
Section 4 End of the War
The Treaty of Versailles
A New Map of Europe
This cartoon portrays one view of the peace treaties that ended World War I.
* The turkey symbolizes Germany.
* Britain holds a carving knife and fork, ready to carve the turkey.
* Other Allies await the feast.
1. What does carving up the turkey symbolize?
2. What attitude do you think that the cartoonist has towards the treaties?
Why might the distribution of territory after World War I leave behind widespread dissatisfaction?
Other parts of the treaty were aimed at weakening Germany. The treaty severely limited the size of the once-feared German military. It returned Alsace and Lorraine to France, removed hundreds of square miles of territory from western and eastern Germany, and stripped Germany of its overseas colonies. The treaty compelled many Germans to leave the homes they had made in Russia, Poland, Alsace-Lorraine, and the German colonies to return to Germany or Austria.
The Germans signed because they had no choice. However, German resentment of the Treaty of Versailles would poison the international climate for 20 years. It would help spark an even deadlier world war in the years to come.
The Allies drew up separate treaties with the other Central Powers. Like the Treaty of Versailles, these treaties left widespread dissatisfaction. Discontented nations waited for a chance to revise the peace settlements in their favor.
Where the German, Austrian, and Russian empires had once ruled, a band of new nations emerged. Poland became an independent nation after more than 100 years of foreign rule. The Baltic states of Latvia, Lithuania, and Estonia fought for and achieved independence.
Three new republics—Czechoslovakia, Austria, and Hungary—rose in the old Hapsburg heartland. In the Balkans, the peacemakers created a new South Slav state, Yugoslavia, dominated by Serbia.
European colonies in Africa, Asia, and the Pacific had looked to the Paris Peace Conference with high hopes. Colonial leaders expected that the peace would bring new respect and an end to imperial rule. However, the leaders at Paris applied self-determination only to parts of Europe. Outside Europe, the victorious Allies added to their overseas empires. The treaties created a system of mandates, territories administered by Western powers. Britain and France gained mandates over German colonies in Africa. Japan and Australia were given mandates over some Pacific islands. The treaties handled lands that used to be part of the Ottoman empire as if they were colonies, too.
In theory, mandates were to be held until they were able to stand alone. In practice, they became European colonies. From Africa to the Middle East and across Asia, people felt betrayed by the peacemakers.
The War's Legacy
Reading Check
Identifying
What clause in the Treaty of Versailles particularly angered the Germans?
Preview: Chapter 17 The West Between the Wars 1919-1939
Chapter Overview
The peace settlements at the end of World War I combined with severe economic problems to produce widespread discontent across Europe. Democratic rule in many states gave way to fascism, authoritarianism, and the totalitarianism of Stalin and Hitler.
Section 1 The Futile Search for Stability
The peace settlement at the end of World War I left many nations unhappy and border disputes simmering throughout Europe. The League of Nations proved a weak institution. Democracy was widespread, and women in many European countries gained the right to vote. However, economic problems plagued France, Great Britain, and the German Weimar Republic. When Germany declared that it could not continue to pay reparations, France occupied one German region as a source of reparations. An American plan reduced the burden of reparations and led to a period of prosperity and American investment in Europe. The prosperity ended with the economic collapse of 1929 and the Great Depression. European governments tried different approaches to ending the depression. Many middle-class Germans began to identify with anti-democratic political parties. The new American president, Franklin Delano Roosevelt, pursued a policy of active government intervention in the economy that came to be known as the New Deal.
Section 2 The Rise of Dictatorial Regimes
By 1939 most European democracies had collapsed. Only France and Great Britain remained democratic. Benito Mussolini began his political career as a Socialist, but he abandoned socialism for fascism, which glorified the state and justified the suppression of all political dissent. In Italy, Mussolini outlawed most political opposition, but also compromised with powerful groups and never achieved totalitarian control. After the Russian civil war, Lenin restored capitalist practices to prevent economic and political collapse. After Lenin's death, Joseph Stalin emerged as the most powerful Communist figure. Stalin sidelined the Bolsheviks of the revolutionary era and established totalitarian rule. His program of rapid industrialization and collectivization forced horrendous sacrifices on the population. His political purges caused millions to be arrested, imprisoned, and executed. Elsewhere in Eastern Europe and in Francisco Franco's Spain, authoritarian regimes were mainly concerned with preserving the existing social order.
Section 3 Hitler and Nazi Germany
Adolf Hitler, a failed student and artist, built up a small racist, anti-Semitic political party in Germany after World War I. Hitler's Beer Hall Putsch failed. In prison, he wrote Mein Kampf—an account of his movement and his views. As democracy broke down, right-wing elites looked to Hitler for leadership. In 1933 Hitler became chancellor. Amid constant chaos and conflict, Hitler used terror and repression to gain totalitarian control. Meanwhile, a massive rearmament program put Germans back to work. Mass demonstrations and spectacles rallied Germans around Hitler's policies. All major institutions were brought under Nazi control. Women's primary role was to bear Aryan children. Hitler's Nuremberg Laws established official persecution of Jews. A more violent anti-Semitic phase began in 1938 with a destructive rampage against Jews and the deportation of thousands to concentration camps. Increasingly drastic steps barred Jews from attending school, earning a living, or engaging in Nazi society.
Section 4 Cultural and Intellectual Trends
After World War I, radio and film became sources of entertainment as well as propaganda tools. Hitler and the Nazis made wide use of both. Work patterns after the war allowed many people to enjoy mass leisure activities such as professional sporting events, as well as train, bus, and car travel. The Nazis organized events such as concerts for workers. The revolution in physics continued with Werner Heisenberg's uncertainty principle. The uncertainty of the post-war world became a prominent theme in art. Dadaism and the surrealism of Salvador Dalí reflected absurdity in the world. Nazi art was intended to be authentically German. In fact, it was largely derived from nineteenth-century folk art. Literary interest in the unconscious produced the "stream of consciousness" technique of James Joyce's Ulysees. The German novelist Hermann Hesse was influenced by psychology and Asian religions.
This is Depression era photography of Dorothea Lange to the sound of Bing Crosby singing 'Buddy, Can You Spare A Dime,' (Yip Harburg wrote this iconic song), 2:25
In the early 1930s, a worldwide economic depression threw thousands out of work and into lives of poverty. The song below summed up the mood of the time:
“They used to tell me I was building a dream
With peace and glory ahead—
Why should I be standing in line,
Just waiting for bread?
Once I built a railroad, I made it run,
Made it race against time.
Once I built a railroad, now it’s done—
Brother, can you spare a dime?”
— from the song “Brother, Can You Spare a Dime?,” lyrics by E.Y. Harburg
Lyrics are reproduced for educational purposes only: copyright remains in the hands of the legitimate owners.
This haunting photograph shows a farmer ruined by the dustbowl of 1936. A woman and nursing child, possibly part of his family, sit behind him under a makeshift shelter.
In Dorothea Lange’s famous 1936 photo Migrant Mother, Nipomo, California, a mother looks into the future with despair. She migrated to escape scenes like the one below, where huge dust storms buried farm equipment in Dallas, Texas. How did geography help aggravate the depression in the United States?
The Great Flu Epidemic
Hospitals "Full-Up": The 1918 Influenza Pandemic, 8:24
A documentary comparing the 1918 Spanish Influenza pandemic with modern-day health capabilities, in the event of an act of bioterrorism or any large-scale infectious disease outbreak.
Section 1
The peace settlement at the end of World War I left many nations unhappy and border disputes simmering throughout Europe. The League of Nations proved a weak institution. Democracy was widespread, and women in many European countries gained the right to vote. However, economic problems plagued France, Great Britain, and the German Weimar Republic. When Germany declared that it could not continue to pay reparations, France occupied one German region as a source of reparations. An American plan reduced the burden of reparations and led to a period of prosperity and American investment in Europe. The prosperity ended with the economic collapse of 1929 and the Great Depression. European governments tried different approaches to ending the depression. Many middle-class Germans began to identify with anti-democratic political parties. The new American president, Franklin Delano Roosevelt, pursued a policy of active government intervention in the economy that came to be known as the New Deal.
League of Nations, 2:52
Uneasy Peace, Uncertain Security
A Weak League of Nations
The peace was fragile. Although the Kellogg-Briand Pact outlawed war, it provided no way of enforcing the ban. The League of Nations, too, was powerless to stop aggression. In 1931, the League vigorously condemned Japan’s invasion of Manchuria, but did not take military action to stop it. Ambitious dictators in Europe noted the League’s weakness and began to pursue aggressive foreign policies.
Analyzing Political Cartoons
An End to War?
The Kellogg-Briand Pact raised hopes for an end to war. But not everyone was so optimistic, as this 1929 American cartoon shows.
*Kellogg-Briand Pact framed as a fire insurance policy
*Adequate navy as a fire extinguisher
*Uncle Sam looking at both
1. Do you think that the cartoonist feels that a fire insurance policy is enough to prevent a fire?
2. What point do you think the cartoonist is making about the Kellogg-Briand Pact?
French Demands
Inflation in Germany
The Treaty of Locarno
The Locarno Treaties and Germany's Entry into the League, :59
Despite disagreements, many people worked for peace in the 1920s. Hopes soared in 1925 when representatives from seven European nations signed a series of treaties at Locarno, Switzerland. These treaties settled Germany’s disputed borders with France, Belgium, Czechoslovakia, and Poland. The Locarno treaties became the symbol of a new era of peace.
The Kellogg-Briand Pact, which was sponsored by the United States in 1928, echoed the hopeful “spirit of Locarno.” Almost every independent nation signed this agreement, promising to “renounce war as an instrument of national policy.” In this optimistic spirit, the great powers pursued disarmament, the reduction of armed forces and weapons. The United States, Britain, France, Japan, and other nations signed treaties to reduce the size of their navies. However, they failed to agree on limiting the size of their armies.
Reading Check
Explaining
Why was the League of Nations unable to maintain peace?
The Great Depression
The post-war prosperity did not last. At the end of the 1920s, an economic crisis began in the United States and spread to the rest of the world, leaving almost no corner untouched.
Causes of the Depression
The wealth created during the 1920s in the United States was not shared evenly. Farmers and unskilled workers were on the losing end. Though demand for raw materials and agricultural products had skyrocketed during the war, demand dwindled and prices fell after the war. Farmers, miners and other suppliers of raw materials suffered. Because they earned less, they bought less. At the same time, better technology allowed factories to make more products faster. This led to overproduction, a condition in which the production of goods exceeds the demand for them. As demand slowed, factories cut back on production and workers lost their jobs.
Meanwhile, a crisis in finance—the management of money matters, including the circulation of money, loans, investments, and banking—was brewing. Few saw the danger. Prices on the New York Stock Exchange were at an all-time high. Eager investors acquired stocks through risky methods. To slow the run on the stock market, the Federal Reserve, the central banking system of the United States, which regulates banks, raised interest rates in 1928 and again 1929. It didn’t work. Instead, the higher interest rates made people nervous about borrowing money and investing, thereby hurting demand.
In the autumn of 1929, jitters about the economy caused many people to sell their stocks at once. Financial panic set in. Stock prices crashed, wiping out the fortunes of many investors. The Great Depression, a painful time of global economic collapse, had begun quietly in the summer of 1929 with decreasing production. The October stock market crash aggravated the economic decline.
Responses to the Depression
In 1931, the Federal Reserve again increased the interest rate, with an even more disastrous effect. As people bought and invested less, businesses closed and banks failed, throwing millions out of work. The cycle spiraled steadily downward. The jobless could not afford to buy goods, so more factories had to close, which in turn increased unemployment. People slept on park benches and lined up to eat in soup kitchens.
The economic problems quickly spread around the world. American banks stopped making loans abroad and demanded repayment of foreign loans. Without support from the United States, Germany suffered. It could not make its reparations payments. France and Britain were not able to make their loan payments.
Desperate governments tried to protect their economies from foreign competition. The United States imposed the highest tariffs in its history. The policy backfired when other nations retaliated by raising their tariffs. In 1932 and 1933, global world trade sank to its 1900 level. As you have read, the Great Depression spread misery from the industrial world to Latin America, Africa, and Asia.
Reading Check
Summarizing
What were the results of the Great Depression?
Democratic States After the War
Note Taking
Reading Skill: Identify Main Ideas
Record main ideas from this section in a table like the one below.
In 1919, the three Western democracies—Britain, France, and the United States—appeared powerful. They had ruled the Paris Peace Conference and boosted hopes for democracy among the new nations of Eastern Europe. Beneath the surface, however, postwar Europe faced grave problems. To make matters worse, many members of the younger generation who might have become the next great leaders had been killed in the war.
At first, the most pressing issues were finding jobs for returning veterans and rebuilding war-ravaged lands. Economic problems fed social unrest and made radical ideas more popular.
In addition to problems at home, the three democracies faced a difficult international situation. The peace settlements caused friction, especially in Germany and among some ethnic groups in Eastern Europe.
Germany
From its headquarters in Geneva, Switzerland, the League of Nations encouraged cooperation and tried to get members to make a commitment to stop aggression. In 1926, after signing the Locarno agreements, Germany joined the League. Later, the Soviet Union was also admitted.
France
Like Britain, France emerged from World War I both a victor and a loser. Political divisions and financial scandals plagued the government of the Third Republic. Several parties—from conservatives to communists—competed for power. The parties differed on many issues, including how to get reparations payments from Germany. A series of quickly changing coalition governments ruled France.
France’s chief concern after the war was securing its borders against Germany. The French remembered the German invasions of 1870 and 1914. To prevent a third invasion, France built massive fortifications called the Maginot Line along its border with Germany. However, the line would not be enough to stop another German invasion in 1940.
In its quest for security, France also strengthened its military and sought alliances with other countries, including the Soviet Union. It insisted on strict enforcement of the Versailles treaty and complete payment of reparations. France’s goal was to keep the German economy weak.
Great Britain
Britain disagreed with this aim. Almost from the signing of the Treaty of Versailles, British leaders wanted to relax the treaty’s harsh treatment of Germany. They feared that if Germany became too weak, the Soviet Union and France would become too powerful.
In Britain during the 1920s, the Labour party surpassed the Liberal party in strength. The Labour party gained support among workers by promoting a gradual move toward socialism. The Liberal party passed some social legislation, but it traditionally represented middle-class business interests. As the Liberal party faltered, the middle class began to back the Conservative party, joining the upper class, professionals, and farmers. With this support, the Conservative party held power during much of 1920s. After a massive strike of over three million workers in 1926, Conservatives passed legislation limiting the power of workers to strike.
Britain still faced the “Irish question.” In 1914, Parliament passed a home-rule bill that was shelved when the war began. On Easter 1916, a small group of militant Irish nationalists launched a revolt against British rule. Although the Easter Rising was quickly suppressed, it stirred wider support for the Irish cause. When Parliament again failed to grant home rule in 1919, members of the Irish Republican Army (IRA) began a guerrilla war against British forces and their supporters. In 1922, moderates in Ireland and Britain reached an agreement. Most of Ireland became the self-governing Irish Free State. The largely Protestant northern counties remained under British rule. However, the IRA and others fought for decades against the division.
Ireland 1916 - The Easter Rising, 4:45
The Irish Resist
Members of the Irish Republican Army prepare to resist the British occupation of Dublin in 1921 by erecting a barbed wire barricade. The Irish Free State, established in 1922, was a compromise between the opposing sides, but peace was short-lived. The conflict has continued since that time.
The United States
In contrast, the United States emerged from World War I in good shape. A late entrant into the war, it had suffered relatively few casualties and little loss of property. However, the United States did experience some domestic unrest. Fear of radicals and the Bolshevik Revolution in Russia set off a “Red Scare” in 1919 and 1920. Police rounded up suspected foreign-born radicals, and a number were expelled from the United States.
The “Red Scare” fed growing demands to limit immigration. Millions of immigrants from southern and eastern Europe had poured into the United States between 1890 and 1914. Some native-born Americans sought to exclude these newcomers, whose cultures differed from those of earlier settlers from northern Europe. In response, Congress passed laws limiting immigration from Europe. Earlier laws had already excluded or limited Chinese and Japanese immigration.
Reading Check
Explaining
What did John Maynard Keynes think would resolve the Great Depression?
John Maynard Keynes and the Great Depression, 2:10
Paul McCartney and Wings - Give Ireland back to the Irish, 3:43
Song about the British in the north eastern counties of Ireland which denies the Irish people the right of national self-determination.
Song performed by Wings.
Give ireland back to the irish
Dont make them have to take it away
Give ireland back to the irish
Make ireland irish today
Great britian you are tremendous
And nobody knows like me
But really what are you doin
In the land across the sea
Tell me how would you like it
If on your way to work
You were stopped by irish soliders
Would you lie down do nothing
Would you give in, or go berserk
Give ireland back to the irish
Dont make them have to take it away
Give ireland back to the irish
Make ireland irish today
Great britian and all the people
Say that all people must be free
Meanwhile back in ireland
Theres a man who looks like me
And he dreams of God and country
And hes feeling really bad
And hes sitting in a prison
Should he lie down do nothing
Should give in or go mad
Give ireland back to the irish
Dont make them have to take it away
Give ireland back to the irish
Make ireland irish today
Give ireland back to the irish
Dont make them have to take it away
Give ireland back to the irish
Make ireland irish today
Lyrics reproduced here for educational purposes only; copyright remains in the hands of the legitimate owners.
John & Yoko - Sunday Bloody Sunday, 5:03, from Lennon's 'Sometime In New York City' album.
Sunday Bloody Sunday - Wolfe Tones, 4:09
This is a song from their CD entitled Celtic Symphony.
The Great War #1, World War 1 Era Period Music and Pictures. WW 1 spanned from August of 1914 to November of 1918 and raged across the globe. The United States was officially involved in the war from April 1917 to the end.
The dough boys are nearly forgotten today in the shadow of World War 2, Vietnam and Iraq. Millions of American men and women, black and white, served our country in The Great War. This series of shorts shows the music of their time and photographs from the Great War.
Links
BBC Schools Links
GCSE Bitesize Revision - History
bbc.co.uk/schools/gcsebitesize/history/
A secondary revision resource for GCSE exams covering the First World War.
The Bitesize series features audio clips from history and commentators:
Standard Grade Bitesize Revision - History
bbc.co.uk/scotland/learning/bitesize/standard/history/
A secondary revision resource for Standard Grade covering the First World War.
BBC Sites
BBC History - World War One
bbc.co.uk/history/worldwars/wwone/
This World War One site from BBC History features interactive movies, animations, feature articles and 3-d models.
History Trail – How to do History
bbc.co.uk/history/lj/how_to_do_historylj/preview.shtml
Follow in the footsteps of professional historians and find out how they do history. Discover how postcards, council records, tapestries and people's memories of the past are all valuable sources for the historian.
Other Sites
Learning Curve – The Great War
http://www.learningcurve.gov.uk/greatwar
This is a comprehensive offering from the Public Records Office, which tells the story of the First World War through six different source based investigations. It aims to show how the War developed and includes teachers' notes.
Spartacus Educational – The First World War
http://www.spartacus.schoolnet.co.uk/FWW.htm
Spartacus' World War One website offers a growing encyclopaedia of entries about the war, as well as links to other websites.
First World War.com - The war to end all wars
http://www.firstworldwar.com
This site gives a general overview of the First World War. It offers a collection of insightful feature articles, photos and footage, memoirs and diaries.
Spark Notes – World War 1 (1914-1918)
http://www.sparknotes.com/history/european/ww1/
Gives a summary and commentary on each main study area of the First World War.
Art of the First World War
http://www.art-ww1.com/gb/present.html
Presents 100 paintings from international collections from around the world to commemorate the First World War.
The World War One Document Archive
http://www.art-ww1.com/gb/present.html
The World War One Document Archive presents primary documents concerning the Great War.
World War 1 - Web Links
http://www.historyteacher.net/APEuroCourse/WebLinks/WebLinks-WorldWar1.htm
This site lists links to in-depth articles on all aspects of the First World War, including a large collection of links to primary source material.
National Curriculum Online: History
http://curriculum.qcda.gov.uk/key-stages-3-and-4/subjects/history/index.aspx?return=/key-stages-3-and-4/subjects/index.aspx
Information about the National Curriculum for History, QCDA and DfEE schemes of work, pupils' work and information about standards and support materials.
QCDA History
http://www.qcda.gov.uk/6354.aspx
The Qualifications and Curriculum Development Authority (QCDA) History section.
Examine key issues with the help of original documents.
Songs are in this order: It's A Long Way to Berlin but We'll Get There, The Yanks Started Yankin, I May Stay Away A Little Longer, It's A Long Way to Tipperary, What Kind of an American Are You, How Ya Gonna Keep Them Down on the Farm
Cf. http://www.youtube.com/watch?v=sH4-fYIfC-E
Elvis Costello's (What's So Funny 'Bout) Peace, Love and Understanding, 3:18
Wagner - RIDE OF THE VALKYRIES - Furtwangler, 5:09
The Ride of the Valkyries, by Richard Wagner, in a classic recording with Wilhelm Furtwangler and the Vienna Philharmonic. Illustrations are by Arthur Rackham.
The music: probably the most famous and instantly identifiable of Wagner's works is this short orchestral prelude from Die Walkure, the second opera in the monumental Der Ring des Nibelungen. It has gone on to enter popular culture, being used in many films, most notably the helicopter attack sequence in Apocalypse Now. In terms of composition it perfectly demonstrates Wagner's epic sense of drama, and also his masterful orchestration.
The conductor: Wilhelm Furtwangler is probably unrivalled as an interpreter of the core Austro-German Romantic repertoire, setting benchmarks in the performance of Beethoven, Schubert, Brahms, Wagner, Bruckner and others. His recordings include two complete Ring Cycles, both of them classics.
The illustrations: Arthur Rackham was one of the greatest illustrators at the turn of the 19th century, creating classic visions for fairy tales and fantasies (Alice, Peter Pan, etc.).
His work on Der Ring des Nibelungen is often considered one of the finest visual depictions of Wagner's epic.
