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Prior to 1921, before the reparation payments required of Germany were raised to $33 billion, the British economist John Maynard Keynes said, “The policy of reducing Germany to servitude for a generation, of degrading the lives of millions of human beings, and of depriving a whole nation of happiness should be abhorrent and detestable . . . . Nations are not authorized, by religion or by natural morals, to visit on the children of their enemies the misdoings of parents or rulers.” This economic punishment of Germany had disastrous consequences in the decades to come. Section 1 DYK
I. Uneasy Peace, Uncertain Security (pages 464–466) • A. The peace settlement at the end of World War I created repeated border disputes among new nations and left many Germans determined to change the terms of the Treaty of Versailles. Section 1 DLN-1
I. Uneasy Peace, Uncertain Security (pages 464–466) • B. Though President Wilson and others hoped that the League of Nations could solve many of the new conflicts, the league was not able to maintain peace. One reason for this was that the United States never ratified the Treaty of Versailles and could not become a member of the League of Nations. Americans did not want to be involved in European affairs. Also, the league could not use military force and had to rely only on economic sanctions to stop aggression. Section 1 DLN-2
I. Uneasy Peace, Uncertain Security (pages 464–466) • C. The French demanded that the Treaty of Versailles be strictly enforced. The Germans said that due to economic problems they could no longer continue to pay back the $33 billion that was required. The French army occupied the Ruhr Valley, an industrial and mining center. The French planned to take the reparations by operating German industries themselves. Section 1 DLN-3
I. Uneasy Peace, Uncertain Security (pages 464–466) • D. In response, German workers went on strike. The government paid them by printing more money. This devalued the German currency and increased the inflation that had begun before the end of the war. The German mark became completely worthless. By the end of 1923, it took more than 4 trillion marks to equal one U.S. dollar. Economic downturns led to labor unrest in many countries. Section 1 DLN-4
I. Uneasy Peace, Uncertain Security (pages 464–466) • E. The huge inflation meant that people suffered terribly. The economic problems led to political unrest in Germany. Other countries stepped in to help. The Dawes Plan began by reducing reparation payments and coordinating Germany’s payments with what the nation could afford. The plan also loaned Germany $200 million and led to heavy American investments, which lasted between 1924 and 1929. Section 1 DLN-5
I. Uneasy Peace, Uncertain Security (pages 464–466) • F. As Germany began to recover, the French and Germans became more cooperative. They signed the Treaty of Locarno in 1925, which guaranteed Germany’s western borders. It was seen by many as a beginning of lasting peace. G. In 1926, Germany joined the League of Nations. In 1928, 63 nations signed the Kellogg-Briand pact, in which they pledged to renounce war as an instrument of national policy. Section 1 DLN-6
I. Uneasy Peace, Uncertain Security (pages 464–466) • H. While Germany had been forced to reduce its military, no other European nation was willing to take this step. The trust of European countries for each other did not go that far. Section 1 DLN-7
II. The Great Depression (pages 466–467) • A. The brief period of European prosperity ended in 1929 with the onset of the Great Depression. During a depressionthere is very low economic activity and high unemployment. Section 1 DLN-9
II. The Great Depression (pages 466–467) • B. The Great Depression had two main causes. One was the downturn in the economies of nations during the second half of the 1920s. The second cause was the collapse of the U.S. stock market in 1929. Since 1924, Germany had been borrowing money from U.S. banks to make reparations payments. After the stock market crashed, American investors pulled their money out of Germany. This weakened banks in Germany and other European countries. Section 1 DLN-10
II. The Great Depression (pages 466–467) • C. As trade and industrial production slowed, huge numbers of people lost their jobs. Though there had been depressions in Europe before, the Great Depression was far worse. Unemployed and homeless people filled the streets of many countries. D. Governments did not know how to deal with the depression. They tried to lower wages and raise tariffs on foreign goods, which made things worse. Some governments, such as in the United States, became more involved in the economy. Communism became more popular in many places. Section 1 DLN-11
II. The Great Depression (pages 466–467) • E. The Great Depression led many people to follow political leaders who proposed simple solutions in return for complete power. Democratic governments were challenged everywhere. Section 1 DLN-12
II. The Great Depression (pages 466–467) • What were two causes of the Great Depression? Two causes of the Great Depression were the downturn in many nation’s economies during the second half of the 1920s and the collapse of the U.S. stock market in 1929. Section 1 DLN-13
III. Democratic States After the War (pages 467–469) • A. In 1919, many European states had democratic governments. In all states except Italy, Switzerland, France, and Spain, women had gained the right to vote. B. In Germany the Weimar Republic was created in 1918 but had many problems. Paul von Hindenburg was elected president but was not a strong leader. The Weimar Republic also faced serious economic problems. Runaway inflation caused people to lose their incomes and savings. Then in 1929, Germany suffered under the Great Depression. Millions of people had no jobs. Section 1 DLN-14
III. Democratic States After the War (pages 467–469) • C. After World War I, France became the strongest power on the European continent. France was able to avoid serious effects of the Great Depression until 1932. However, when economic instability occurred, there was political chaos. A series of cabinets came and went. In 1936, Communists, Socialists, and Radicals formed the Popular Front government. The Popular Front began programs for workers including the right to negotiate with employers (collective bargaining), a minimum wage, and a 40–hour work week. However, the government was not able to solve the larger problems of the depression. Section 1 DLN-16
III. Democratic States After the War (pages 467–469) • D. Great Britain suffered severe unemployment in the early 1920s but rebounded somewhat between 1925 and 1929. As Britain’s economic problems continued during the Great Depression, governments changed from the Labour Party to the Conservatives. Section 1 DLN-17
III. Democratic States After the War (pages 467–469) • E. A British economist, John Maynard Keynes, argued in 1936 that unemployment came not from overproduction but from a decline in demand. He said that if people went back to work, demand would increase. Keynes proposed that the government should finance projects such as highway building to create jobs for the unemployed. Governments should finance projects even if it led to deficit spending, or going into debt. Most British politicians of the time ignored his ideas. Section 1 DLN-18
III. Democratic States After the War (pages 467–469) • F. The United States was terribly affected by the Great Depression. Industrial production fell by 50 percent between 1929 and 1932. By 1933, 15 million people were out of work. In 1932, Franklin Delano Roosevelt was elected president. G. Roosevelt instituted a policy called the New Deal. Under the New Deal, the government created jobs by funding programs of public works. Roosevelt also pushed through the Social Security Act, which created a system of old-age pensions and unemployment insurance. Section 1 DLN-19
III. Democratic States After the War (pages 467–469) • H. While the New Deal may have prevented a social revolution in the United States, it did not solve the problem of unemployment. It was not until World War II that American workers regained full employment. Section 1 DLN-20
Joseph Stalin was neither a dynamic speaker nor a forceful writer. He was content to hold the dull bureaucratic job of general secretary, while others held more public positions in the Politburo. Stalin was an excellent organizer and for that his fellow Bolsheviks called him “Comrade Index-Card.” In time they learned that Stalin also held more power than anyone. Section 2 DYK
I. The Rise of Dictators (page 471) • A. Between 1919 and 1939, all the major countries of Europe except France and Great Britain had adopted some form of dictatorial government. B. A new form of dictatorship was the modern totalitarian state. Totalitarian governments aimed to control all aspects of their citizens’ lives. Totalitarian governments wanted to control the hearts and minds of everyone and used mass propaganda and modern communication to achieve their goals. Section 2 DLN-1
I. The Rise of Dictators (page 471) • C. A single leader and a single party led the new totalitarian states. There were no individual freedoms or limits to government power. Individuals were considered subservient to the collective will of the masses, which was controlled by the state. The state demanded that its citizens actively support any of its goals. Section 2 DLN-2
II. Fascism in Italy (pages 471–473) • A.Benito Mussolini in Italy established the first European Fascist government in the early 1920s. Fascism glorifies the state above the individual. A strong central government and a single dictator run the state. Benito Mussolini Section 2 DLN-4
II. Fascism in Italy (pages 471–473) • B. Italy suffered severe economic problems after World War I. There was a great deal of social upheaval. Many Italians were afraid that there might be a Communist takeover as in Russia and Mussolini’s movement gained wide support. Mussolini formed groups of armed Fascists called Blackshirts, who attacked socialists and strikers and anyone who opposed the Fascists. Section 2 DLN-5
II. Fascism in Italy (pages 471–473) • C. Mussolini appealed to nationalist pride among Italians. He demanded that Italy get more land from the peace treaties of World War I. In 1922, Mussolini had enough followers that he forced the Italian king to make him his prime minister. As prime minister, Mussolini created a Fascist dictatorship. He added extensive powers to the government and was given the power to pass laws by decree. The police were given authority to arrest anyone. Section 2 DLN-6
II. Fascism in Italy (pages 471–473) • D. In 1926, the Fascists outlawed all opposition. They set up a secret police. At the end of 1926, Mussolini was the only ruler of Italy. He was called Il Duce. E. Mussolini used the secret police to control the people. The Fascists also controlled mass-media outlets. They used the media to spread pro-Fascist propaganda. The Fascists created youth groups that focused on military activities. While the Italian Fascists tried to create a new nation of fit, disciplined, and war-loving people, they still maintained traditional values about the important place of women and families in society. Section 2 DLN-7
II. Fascism in Italy (pages 471–473) • F. Mussolini never achieved the total control over Italy that Hitler and Stalin did in Germany and the Soviet Union. For example, Mussolini still recognized the sovereign independence of the Vatican in Rome and Catholicism as the state religion. G. In all areas of Italian life, there was a large gap between Fascist policies and actual practice. Section 2 DLN-8
III. A New Era in the Soviet Union (pages 473–476) • A. In the early 1920s, millions died in Russia during a great famine caused by a drought. Industrial output was reduced to 20 percent of that of 1913. The country and government were on the verge of collapse. B. In 1921, Lenin created the New Economic Policy(NEP). He abandoned war communism in favor of a system of modified capitalism. Peasants could sell produce, and small businesses could be privately owned. The government still controlled heavy industries and banking. Section 2 DLN-11
III. A New Era in the Soviet Union (pages 473–476) • C. In 1922, the Communists created the Union of Soviet Socialist Republics (USSR), or Soviet Union. The NEP saved the Soviet Union from economic ruin, but the Communists saw it only as a temporary measure. Section 2 DLN-12
III. A New Era in the Soviet Union (pages 473–476) • D. In 1924, Lenin died and a bitter struggle for power in the Politburoensued. The Politburo was a committee that controlled the policies of the Communist Party. One faction, led by Leon Trotsky, wanted to end the NEP and industrialize the nation at the expense of the peasants. They also wanted to spread communism to other countries. Another faction rejected worldwide communism and wanted to continue the NEP while building a socialist state. Section 2 DLN-13
III. A New Era in the Soviet Union (pages 473–476) • E. Trotsky and Joseph Stalin were personal rivals in the Politburo. Stalin held the job of general secretary, and as such had appointed thousands of officials throughout Russia. Stalin used his position to gain complete control over the Communist Party. By 1929, he had removed all the Bolsheviks from power and became a powerful dictator. Trotsky was expelled and ended up in Mexico, where he was killed in 1940, probably on Stalin’s orders. Joseph Stalin Section 2 DLN-14
III. A New Era in the Soviet Union (pages 473–476) • F. The Stalinist Era began a time of radical changes in the Soviet Union. In 1928, Stalin ended the NEP and instituted the First Five-Year Plan. The Five-Year Plans set economic goals for five-year periods. The First Five-Year Plan emphasized industrialization and production of capital goods. The plan greatly increased the output of heavy machinery and production of oil and steel. Section 2 DLN-15
III. A New Era in the Soviet Union (pages 473–476) • G. The Five-Year Plans took a heavy toll on the Russian people. Urban housing for millions of workers was terrible. Wages declined. The government dealt with these problems by using propaganda to boost morale. H. Stalin also collectivized agriculture. Collectivizationwas a system in which the government took over ownership of private farms and had the peasants work them. Many peasants resisted collectivization by hoarding food and killing livestock. Stalin responded by increasing the number of farms in the program. Section 2 DLN-16
III. A New Era in the Soviet Union (pages 473–476) • I. During the early 1930s, millions of Russians starved to death due to food shortages from collectivization. Those who resisted Stalin’s programs were sent to Siberian forced labor camps. Stalin conducted purges of Old Bolsheviks and others, many of whom were executed. The purges spared no part of society. J. Stalin overturned social legislation passed in the early 1920s. These included laws protecting rights of women, such as divorce and being able to work outside the home. Section 2 DLN-17
IV. Authoritarian States in the West (pages 476–477) • A. Authoritarian states were similar to totalitarian states. They were concerned with preserving a social order, but unlike totalitarian states they did not try to create a new mass society that had complete control over the people. Section 2 DLN-20
IV. Authoritarian States in the West (pages 476–477) • B. In most of the countries of eastern Europe, authoritarian governments replaced parliamentary governments. Parliamentary systems in eastern Europe failed in part because there was no tradition of democracy and most of the peasants were illiterate. Landowners and the churches feared that democracy would lead to revolution. They supported authoritarian governments to keep order. Czechoslovakia was the only country to keep a democratic government. Section 2 DLN-21
IV. Authoritarian States in the West (pages 476–477) • C. In 1936, General Francisco Francoused the military forces to revolt against the democratic government in Spain. A civil war broke out. Germany and Italy supported Franco’s side. The Soviet Union and volunteers from other countries supported the republican government. Franco won the civil war after he captured Madrid in 1939. He then began an authoritarian dictatorship that lasted for many decades. Section 2 DLN-22
In Mein Kampf, Hitler spelled out the ideas that directed his actions once he took power in Germany. In 1923, he essentially wrote for anyone to read what he planned to do. It was to his great advantage that other people did not take his extreme ideas seriously. If they had from the beginning, the course of history might have been very different. Section 3 DYK
I. Hitler and His Views (page 479) • A.Adolf Hitler was born in Austria, failed secondary school, and was rejected by the Vienna Academy of Fine Arts. It was in Vienna that he developed his ideas. Racism, particularly against the Jewish people, was at the core of Hitler’s ideas. He was an extreme nationalist and understood the use of propaganda and terror. Section 3 DLN-1
I. Hitler and His Views (page 479) • B. Hitler served on the Western Front for four years during World War I. Then he entered politics in Germany. In 1919, he joined an extreme right-wing nationalist party in Munich. By 1921, Hitler controlled the party and renamed it the National Socialist German Workers’ Party, or Nazi Party for short. C. Within two years, the Nazi Party had grown to 55,000 people with 15,000 in the militia. In 1923, Hitler staged an uprising in Munich—called the Beer Hall Putsch—which was quickly crushed. Hitler was sent to prison. Section 3 DLN-2
I. Hitler and His Views (page 479) • D. While in prison, Hitler wrote Mein Kampf, in which he outlined his basic ideas and plans. His ideas combined German nationalism, anti-Semitism, and anticommunism. He also embraced the notion that stronger nations should expand to obtain living space (Lebensraum) and that superior leaders should rule over the masses. Section 3 DLN-3
II. Rise of Nazism (pages 479–480) • A. Hitler realized that the way to power was through legal means, not through violent overthrow of the government. When he got out of prison, he worked to expand the Nazi Party throughout Germany. By 1929, the Nazis had a national party organization, and by 1931 it was the largest political party in the Reichstag, or parliament. Section 3 DLN-5
II. Rise of Nazism (pages 479–480) • B. Germany’s economic problems helped the rise of the Nazi Party. Many people were in desperate situations, which made extreme political parties far more attractive. Hitler appealed to national pride and militarism to gain the support of the German people. Public displays of the swastika—a cross with its arms bent 90 degrees to either left or right—were everywhere. Section 3 DLN-6
III. Victory of Nazism (pages 480–481) • A. After 1930, the Reichstag had little power. As Hitler’s power grew, more and more right-wing industrial leaders, aristocrats, military officers, and high-level bureaucrats wanted him to lead the country. In 1933, the Nazis pressured President Hindenburg to allow Hitler to become chancellor and create a new government. Section 3 DLN-8