The Ludwig von Mises Institute

1. The Ludwig von Mises Institute Mises Academy

2. The Interwar Years A HISTORY BETWEEN THE WARS A Mises Academy Course Jan./Feb. 2014.

3. Roadmap • Hitler’s Germany • Architecture, Propaganda, Statism • the Spanish Civil War • Mises and the Austrians After Vienna • The European Allies • The Far East • Europe and the Outbreak of War • The Americans and the War Roadmap

4. Fun Facts Page! Charles G. Dawes--not just a an international banker and VP to Silent Cal, but a composer!Melody in A major, 1912, words added by Carl Sigman in 1951: “It’s All in the Game” In negotiating the Young Plan in 1929, Young was accompanied by J. P. Morgan, Jr., and Morgan partner Thomas Lamont Owen Young, Time man of the year,1930

5. Hitler’s Germany

6. The National Socialist “Renewal” • Against Decadence • For a High-Tech Future • Jeffrey Herff: “Reactionary Modernism” • But not conservative values

7. Against the Treaty • Germay withdraws from the League, 1935 • Rearmament 1934 • Saarland Plebiscite 1935 • Franco-Soviet Pact, 1935 • Remilitarization of the Rhineland 1936 • Anschluss: Germany incorporates Austria • Munich: Sudetenland ceded to Germany 1938 • Invasion of Czechoslovakia, 1939 Celebrating Anschluss, Ringstrasse, Vienna “Freeing” Saarbrücken, 1935

8. Hitler’s Plans Lebensraum idea (“space for living”)? From 1924 onward, talk about complex plans for living space in the East. • Four Year Plan, 1936 Germany must be ready for war in four years. • A. J. P. Taylor, The Origins of the Second World War (1961) Hitler was a normal opportunist. He had no real longrange plans; the war was a mistake on everyone’s part. • Burton H. Klein, Germany’s Economic Preparations for War(1959) Germany was not in any sense economically mobilized for a long war in 1939. Only in 1942 did a “Total War” economy take shape. • Edward N. Peterson. The Limits of Hitler’s Power (1969) Hitler was a “weak” dictator who encouraged a kind of bureaucratic and policy survival of the fittest. • Sebastian Haffner, The Meaning of Hitler (1978) Hitler was “good against weak teams” but not against strong ones.

9. Against the Jews

10. Important: David Gordon, “What You Must Read About the Great Depression” http://mises.org/daily/3349/What-You-Must-Read-About-the-Great-Depression Architecture, Propaganda, Statism and from his recommendations on the topic of comparative statism in the thirties, especially John T. Flynn, The Road Ahead and Wolfgang Schivelbusch, Three New Deals: Reflections on Roosevelt's America, Mussolini's Italy, and Hitler's Germany

13. The Spanish Civil War

14. noteson the pre-history to the Spanish Civil War 1923--With support of Alfonso XIII, General Primo de Rivera staged a coup and became dictator Primo was a statist who built highways, dams, and other public works projects. In many ways, he nationalized the economy and instituted wide-ranging protection. Huge public loans and currency expansion financed all kinds of “internal improvements.” The system looked much like Mussolini’s corporatism. Primo died in 1930, depression, inflation, dissatisfaction, and some revolt led to Alfonso suspending monarchy in 1931. From 31 to 36, the “Spanish Republic” swung from right to left governments, all statist. The left eventually focused on limiting the power of the Church.

15. The Civil War, 36 to 39 • Popular Front government, 1936 • The generals revolt, with support of Church • Franco directs the Nationalists against the government, the Republicans, or “Loyalists” • Brutal fighting and outrages on both sides. • Internationalization of the war: --Entry of the Soviets on the PF side --Entry of Germans (planes) and Italians (men) on the Nationalist side. --“International Brigades” (actually volunteers on both sides) --Mexico also supported the Loyalists, Portugal the Nationalists. France was pro-Republic, but officially neutral. Condor Legion

16. Costs • About 500,000 dead • About 450,000 fled the country • About 150,000 civilians executed during war and aftermath by the Nationalists • Between 38 and 50 thousand civilians excecuted during the war by the Loyalists.

17. Mises and the Austrians After Vienna • Hayek to London School of Economics in 1931. • To avoid the Nazi influence in his Austrian homeland, in 1934 Mises left for Geneva, where he was a professor at the Graduate Institute of International Studies. 1940 to US. • Wilhelm Röpke left Marburg for Istanbul in 1933. • Gottfried Haberler moved to the US in 1936, Harvard U. • Fritz Machlup to US permanently by 1934. • Eric Voegelin fled Vienna in 1938, to LSU eventually. • Oskar Morgenstern left Vienna in 1938. And many others... an intellectual emigration.

18. The European Allies • Controlled Markets and a Zero-Sum Game • Appeasement: Chamberlain, Daladier, etc. • Depression, Debts, Empire

19. The Far East

20. World War II Starts Early for Japan and China 1937--Marco Polo Bridge Incident leads to Japanese invasion of China.Dec. 1937--"Rape of Nanjing"--350,009 Chinese killed, 100,000 women raped.Dec. 1937--Japan sinks the USS Panay and three Standard Oil Tankers off of Nanjing.Nov 1938--Japan captures Canton.

21. Japan in China, 1941

22. Soviet-Japanese Border conflict, 1939 • from the Nomonhan Incident, May 39 • to Khalkhin Gol, Aug. 39

23. Europe and the Outbreak of War

24. prelude to war • Second Czech Crisis, March 1939. • Polish Crisis over Corridor and Danzig heats up. • Allies finally turn to Stalin, but... • August 1939, Molotov-Ribbentrop Nonaggression Pact

25. the Radio Tower at GleiwitzorHow to start a war

27. FDR--Naval and Economic Pressure on Japan • 1935 on the eve of the naval disarmament conference • 1937 FDR contemplates a blockade of Japan in light of renewed Japanese hostilities with China • 1938 New joint Army-Navy plan adopted in the case Japan should attack without warning • Multiple movements of fleet elements to Far East 1939. Whole fleet base moved to Pearl Harbor, October 1939(British are urging that the Fleet base itself in Singapore) • The War Plans Division: Victory Plan... for Europe • Eventually, the US sends missions to tempt the Japanese, freezes Japanese assets, etc. • “I will never, never, never...”