Chapter 9

​Economic Globalization - the increasing spread of trade, transportation, and communication systems around the world in the interest of promoting worldwide commerce

Countries and people are more interconnected than ever before.

​

​Why?

• reduction in cost of transportation ​and communication

• ​reduction of barriers that allow more flow of goods, services, capital, and knowledge

Globalization can be healthy, but it doesn't benefit everyone. ​

​- William Tabb

Globalization builds fences of social exclusion between people. ​

​- Naomi Klein

​?

​?

​?

• ​Britain, France, and Russia vs. Germany and Austria-Hungary.

• ​high economic costs of the war

• destruction of European cities, towns, ports, ships, and railways (infrastructure)

• Significant decrease in the production of goods

• Unemployment

​Goal = create peace and prevent another world war

​

​Reparations - the act of making amends for wrongdoing, may include payments made by a defeated enemy to countries whose territory was damaged during a war.

Big Four: Lloyd George of Britain, Vittorio Emanuele Orlando of Italy, Georges Clemenceau of France, and Woodrow Wilson of the U.S.

John Maynard Keynes

• ​member of British delegation

• ​reparations from Germany and Austria is NOT a good idea

​

​BUT... it happened anyway

• Germany had to accept full responsibility for the war

• ​German colonies taken

• ​limited military power

• ​pay 6,600 million euros ($269 billion today)

• Cost $2.5 million/day – income tax temporary introduced

• After the war, interest payments on the country’s war debt totalled $164 million a year and soldiers’ pensions cost another $76 million a year –income tax becomes a permanent feature

• During war = a shortage of labour (soldiers/nurses/farm/factory)

• After the war, soldiers come home and weapon manufacturing stopped – unemployment rose.