Canada and the Bretton Woods (Jan. 14, 2013)
January-14-13 9:27 AM
Discussion Topics for the Next Little While (Canada and the Bretton Woods)
- Worldwide Pre-war Economic Problems
- Issues with the British
- Issues with the U.S.
- Establishing the Bretton Woods System
Worldwide Pre-war Economic Problems
There was a desire to build an economic system for the world…
The Great Depression then hit…
It's hard to overstate the mental suffering that occurred from the Great Depression.
- Ideological extremism was born in places like Germany and being spread in
places like Russia.
○ Hitler was born because of the Great Depression?
○ Social Credit and CCF and other groups were created because of the
○ Politicians, professors and economists believe that World War II occurred
because of the Depression.
At least that's what some American administration officials believe.
○ One thing that most people accepted in terms of solving the problem were
Protectionism (on an international level).
□ Tariffs are higher when the economy is lame. One country does
it… and another does the same thing in response. (Example:
U.S. does it in 2009, Canada gets upset).
Government regulation of the economy (domestically).
○ Alternatively… you could:
Do nothing: the market sorts itself out.
○ Spectacular failure during the Depression:
And World War II gave Canada full employment.
□ At this time, the Government of Canada grew in size, regulated
everything and we were out of the economic recession.
□ The orthodoxy of classical liberalism in Canada is shattered.
□ Domestically, Canada shifted from a liberal economic belief to a
welfare economic belief.
Back in these days, running a deficit or getting into debt was totally
Communist countries reject capitalist ideas.
○ Following the war, the U.S. woul