U.S. ECONOMIC IMPERIALISM

Section 3Ch. 28

Colonial Legacy in Latin America Pre and post-independence Latin America operated

under a system called peonage. Under this system, wealthy landowners paid their

workers in vouchers which were only good at the landowners stores.

Wages remained low and prices for goods high so many workers went into debt and stayed there.

Post Independence LA Newly formed governments confiscated

lands from natives and the Catholic Church. To raise money, they sold these lands to the

only people who could afford them; the already wealthy landowners.

Political Instability After independence many military dictators

(caudillos) ruled these new countries unopposed.

They were backed by the military and supported by landowners who feared losing their wealth and status.

Latin American Economies Dependent on one or two products, LA was

dependent upon Europe and the U.S. to import manufactured goods into their countries.

With the invention of steamships, railroads, and refrigeration, LA, began to export more.

LA Economies LA also used little of their export money to

build roads, schools, or hospitals. They didn’t fund anything that would make

them self-sufficient. Instead, they received high percentage loans

from Euro and the U.S.

The Monroe Doctrine In 1823 U.S. President James Monroe issued

the Monroe Doctrine It states that “the American continents…are

henceforth not to be considered as subjects for future colonization by any European powers.”

Cuba Declares Independence Cuba first declared independence in 1868 and

fought a ten-year war, which they lost. In 1895, Cuban writer Jose Marti, returned to

Cuba to launch a second war. Because of economic interests and Spanish

brutality, the Americans joined the war on the Cuban’s side in 1898.

The Spanish-American War lasted about four months.

The Spanish-American War The U.S. launched its first attack on the Philippine

Islands. The Spanish were not prepared to fight a two

front war and quickly lost. Spain lost the last of its colonies to the U.S.

(Puerto Rico, Guam, and the Philippines) In 1901, Cuba became independent, but was still

under control of a U.S. military government.

The Panama Canal The U.S. became interested in building a canal

b/c the cost of traveling from coast to coast was too expensive.

President Theodore Roosevelt (1901-1909) offered Colombia $10 million to build a canal in Panama.

Colombia demanded more money so the U.S. responded by encouraging a revolution in Panama.

The Panama Canal In 1903, with help from the U.S. Navy,

Panama won its independence. Construction lasted from 1904 to 1914 and

the canal quickly became a crossroads for world trade.

The Roosevelt Corollary To protect its economic interests in Central

and South America, President Roosevelt issued an extension (corollary) to the Monroe Doctrine.

The Roosevelt Corollary gave the U.S. the right to be “an international police power” in the Western Hemisphere.