Europe Between the Wars: Turmoil and Transformation

1. Chapter 17: The West Between the Wars

2. Uneasy Peace, Uncertain Security • Settlements at the Peace of Paris had hoped to fulfill the dream of creating nation-states • Many Germans were upset w/ the unfair treatment they had received in the Treaty of Versailles • The newly formed League of Nations was plagued by weak organization & was not able to maintain peace • The U.S. did not join the League because Americans did not want to get pulled into European affairs • Nations involved could not agree when use of force was necessary • Germany was forced to pay $33 billion in reparations according to the Treaty • Since war manufacturing was illegal, many German factories closed • Economic difficulties caused Germany to have problems paying

3. France occupied the Ruhr Valley (Germany’s industrial center) & planned to take the reparations by running the industries themselves. • In response, German workers resisted & went on strike • Due to inflation, the German govt. printed more paper money to pay workers salaries • This devaluated the German mark & it quickly became worthless • 1914 - $1 = 4.2 marks; 1923 - $1 = 4.2 trillion marks • Germany’s economy collapsed & other countries began to scramble to save the world economy • The Dawes Plan revised the reparations total & adjusted the payment schedule • It also allowed for a $200 million loan for Germany & led to great American investing in German industry • This led to better relations between Germany & France.

4. Hope & Depression • 1925 – Treaty of Locarno: guaranteed Germany’s western border (gave the Ruhr Valley back) • 1926 – Germany joined the League of Nations • 1928 – 63 nations signed the Kellogg-Briand Pact, essentially denouncing war • Germany had been forced to reduce their military, but no other country volunteered to do the same • Just as life began to return to normal in the mid-1920s, the Great Depression hit • depression – a period of very low economic activity & high unemployment • The Great Depression was world-wide and had 2 causes: • The downturn in many nations’ economies in the 1925-30 • Crash of the U.S. stock market in 1929

5. Many nations economies suffered in the mid 1920’s, as prices for goods decreased from overproduction. • Germany had been borrowing heavily from American banks to make reparation payments since 1924. • 1928– the stock market was booming, American investors pull money our of Germany to reinvest in stocks • October 1929 – the U.S. stock market crashes, American investors pull out even more money in a panic • Trade & industrial production slowed, huge numbers of people lost their jobs • Governments tried lowering wages & increasing tariffs (only made things worse) • Some governments (U.S.) became more involved in the economy • Communism becomes more popular in many places • Democracy was challenged world-wide by leaders promising simple economic solutions for complete power

6. Democratic States After the War Germany • 1918 - Weimar Republic created when Willem II left the country • Paul von Hindenburg elected president, but he was a military leader, not a politician • By 1929, millions were unemployed & looking for a solution France • After WWI, France was the strongest power on the European continent • The Great Depression was avoided until 1932, then there was political chaos • 1936 - Communists, Socialists & Radicals formed the Popular Front

7. Great Britain • Power shifted from the Labour Party to the Conservatives • John Maynard Keynes argued that depression resulted from a decrease in demand, not overproduction • If people went back to work, demand would increase • proposed govt. funded work projects to get people jobs • Govts. should finance projects even if it meant going into debt United States • United States greatly affected by the Great Depression • Industrial production fell almost 50% between 1929-1932 • 1932 – Franklin Roosevelt elected president • By 1933, more than 12 million people unemployed • In FDR’s New Deal, the govt. created jobs by funding public works programs • The Social Security Act created a pension system • The US didn’t fully pull out of the depression until WWII

8. Rise of the Dictators • 1919-1939: all European countries but Great Britain & France adopt some form of dictatorial govt. • These totalitarian govts. wanted to control the hearts & minds of everyone. • Mass propaganda techniques & modern communication allowed this • Modern technology also provided these states w/ such ability to impose their wishes on their subjects • There was one leader & one party. • Rejected the idea of limited government & guaranteed freedoms • individual will was subordinate to the collective will of the masses • The collective will was subordinate determined by the leader • The totalitarian state expected the active involvement of the masses in whatever direction the leader decided.

9. Fascism in Italy • In the early 1920’s, Benito Mussolini founded the 1st European fascist movement in Italy • fascism –glorifies the state above the individual by emphasizing the need for a strong central government led by a dictatorial ruler • After post-WWI economic problems, the middle class feared Communist take-over, like in Russia. • 1920-21: Mussolini formed a group of armed Fascists called “Blackshirts” • These thugs attacked socialists, used violence to break strikes to gain support for his party • Disappointed by the settlement Italy received after WWI, Mussolini promised to rebuild the Roman Empire • Mussolini forced the king to name him Prime Minister & set up a dictatorship • Mussolini never achieved the level of total control like Hitler & Stalin

10. The Soviet Union & the Rise of Stalin • 1921 – The civil war is over & the Communists controlled Russia, but agricultural/industrial production was 20% of 1913 • March 1921 – Lenin implements the NEP (New Economic Policy) • Revised version of capitalism • Peasants could now sell their produce openly • Businesses under 20 people are privately owned • 1922 – formal creation of the Union of Socialist Soviet Republics (USSR) • 1923 – agricultural output 75% of Pre-WWI levels • 1922-24 – Lenin suffers a series of strokes, dies 1/21/24 • Politburo divided over direction of the nation • Left – led by Leon Trotsky (Commissar of War) wanted to continue the revolution world-wide • Right – Joseph Stalin (general secretary) wanted to concentrate on building a strong socialist state

11. Trotsky & Stalin had been political rivals since the Communists gained control • Stalin won out because of his influence as secretary • By 1929, Stalin had rid the Politburo of revolutionary Bolsheviks • Trotsky kicked out of party in 1927, assassinated in Mexico1940 • 1928 – announces his 1st 5 Year Plan • Aimed to make the Soviet Union from an agricultural economy into an industrial power • Emphasized capital production not consumer goods • To finance this shift in policy, govt. spending on housing & wages was cut • Wages decreased 43% 1928-40 • Laws passed restricting worker travel • Propaganda stressed personal sacrifice for the good of “Mother Russia” • 1936-38 – 1stPurge, anyone Stalin sensed as a threat placed on trial & executed or sent to prison camps in Siberia

12. Rise of Hitler & Nazi Germany • 1908-13 - A failure in secondary school, made his way to Vienna to become an artist • failed as an artist, but this is where he picked up views that would shape his views for life • 1913 – moved to Munich w/ no real purpose • 1914 – joined the Austrian army in WWI • 1918 - returned to Munich & entered politics • Joined the German Workers’ Party • 1921 – assumed control of the party & renamed it National Socialist German Workers’ Party (Nazi)

13. Hitler’s oratorical skills responsible for attacking an increasing # of followers • Nov. 8, 1923 – Hitler tries to start a revolution called the Munich Beer Hall Putsch, complete failure • Hitler arrested, tried & convicted of treason, got 5 yrs. in prison • trial & imprisonment reinforced his faith in himself & his mission • occupied himself in prison by writing Mien Kampf (My Struggle) • Hitler’s biggest advantage was that no one took his ideas seriously • When Hitler was released in prison, the Nazi party was in shambles • Reorganized the party in late ’20s & expanded to all parts of Germany • By 1929, it was a national party organization • Enrollment grew – 1925: 27,000 1929: 178,000 • Mostly young & fiercely committed • Hitler’s fiery speaking style exited the young followers

14. 1928 – only won 2.6% of votes focusing on urban workers (12 seats in Reichstag) • 1929 – shifted focus to rural middle & lower class people • 1930 – won 18% of votes & 107 seats in parliament • By 1930, the Reichstag was totally ineffectual • relied on emergency decrees from President Hindenburg to rule • Hitler’s rise from late 1930 to 1933 depended on political maneuvering around Hindenburg • 1/30/33 – Hindenburg names Hitler Chancellor & forms a new government • 8/2/34 - Hindenburg dies • 8/15/34 - Hitler abolished presidency & becomes sole ruler of Germany, Third Reich begins • Indoctrination to Nazi ideas at a young age necessary, Hitler Youth & other groups created

15. Hitler did not rule solely through fear, everything had a glimmer of democracy • Hitler implemented programs that would be popular w/ Germans • The people feared communism & he was an opponent of communism • The German people accepted Hitler & the Nazis because they thought he was responsible for ending the economic depression • Anti-Semitism was very bad in Germany/Austria & Hitler used this to his advantage • 4/1/33 – Nazi govt. initiated a 2-day boycott of Jewish businesses • Followed by laws excluding “non-Aryans” from important positions (lawyer, govt., doctor, teacher, etc.) • 1935 – unleashed a new round of anti-Semitic laws w/ the “Nuremberg Laws” • excluded German Jews from citizenship • forbade marriages & extramarital relations between Jews & Germans • more violent phase of anti-Jewish activity took place in 1938 • 11/9 &10/38, Kristallnacht (Night of Shattered Glass) • More drastic prohibitions resulted, Jews “encouraged” to emigrate