Interwar Years: 1920-39

1. Interwar Years: 1920-39

2. Interwar Years: America • America had a lot of money! • Avoided the destruction that Europe experienced during WWI • Made a lot of money helping to rebuild Europe • Made massive loans to France, England & Germany • Why not Soviet Union? • Poised to become a world power • But isolationist urge strong

3. Interwar Years: Great Britain • At the end of WWI, the British Empire was at its greatest extent • They took over Palestine, Iran & Iraq from Ottoman Empire • BUT Britain was dramatically changed • 2.6 million casualties • Women entered workforce • Inflation hurt people on fixed incomes

4. Interwar Years: France • 6.97 million casualties • Political desire to avoid another war with Germany, at any cost • “Appeasement Policy” • France didn’t protest when Hitler violated the Versailles Treaty • Built Maginot Line along German-French border • Elaborate system of forts to protect against German attack

5. Interwar Years: Germany • Germany’s new government = Weimar Republic • Democratic republic with an elected president and parliament, the Reichstag • Government was blamed for losing WWI and the Versailles Treaty • Economic problems • Couldn’t pay war reparations • In 1923, France occupied Ruhr industrial region • But by 1928, Germany’s economy had recovered to 1913 levels

6. Interwar Years: Japan • After WWI, militarism, racism and nationalism became powerful forces in Japan • Began establishing their empire • Korea, 1904-05 • German colonies in Pacific, WWI • Manchuria, 1931 • China invaded, 1937

7. League of Nations • Created out of Versailles Treaty • Goals • Disarmament • Prevent war through collective security • Settle disputes diplomatically • League had no military force of its own (Great Powers) • Incapable of preventing aggression, during 1930s • Member states = 44, including UK, France, Italy • But NOT USA

8. Worldwide Economic Problems • Wages were not keeping up with inflation • Falling crop prices hurt Europe’s recovery • Economic Nationalism • Tariffs were high • That meant European countries couldn’t sell to US, each other • High inflation + high tariffs meant European countries couldn’t afford US goods

9. The Great Depression, 1929-39 • Causes • Inflation (prices up) • Wage stagnation • High debt levels of individuals & business (interest payments) • Businesses began to fail = unemployment = less $ being spent = more business fail • International trade declined due to high tariffs • NY Stock Exchange collapsed on 10/29/29 (Black Tuesday)

10. Great Depression • Worldwide effect • Prices and wages plummeted • Unemployment skyrocketed • Germany stopped payments to allies • European countries stopped interest payments to US • US banks began closing as people demanded money from them

11. Effects of Great Depression • America raised tariffs, cut off Europe from loans • British raised tariffs, increased trade within Empire • French weren’t as industrialized, so less effect; but political unrest was high • Germany’s Weimar Republic died • Inflation made $ worthless; currency was worth more as bulk paper • Strengthened National Socialist German Workers Party (Nazis)

13. Results of the Interwar Years • Dictatorships rise to power during the 1920s-1930s • · people are desperate for strong leadership during the Depression • · Treaty of Versailles failed to establish lasting peace • 1922 Mussolini establishes fascist dictatorship in Italy • 1920s Joseph Stalin'scommunist dictatorship in the Soviet Union (U.S.S.R.) • 1931 Japanese establish militaristic fascist dictatorship • 1933 Adolf Hitler fascist dictatorship in Germany (The Third Reich)