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Explore the challenges faced by new democracies after World War I, the economic crises of the 1920s, the stock market crash, and the global depression. Discover how these factors paved the way for the rise of totalitarian regimes, including Italian fascism.
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Not a Lasting Peace • Article 231 - War Guilt Treaty of V • War Reparations for Germany • Lost Land Eastern Europe • Mandates Middle East • Map p. 799
New Democracies Unstable w/ Exception of Czechoslovakia • After WWI, new democracies (S & SE Europe) had little experience • 1914-1918– Europe’s last absolute rulers overthrown • Coalition Government: temporary alliance of several parties - needed to form a parliamentary majority
1920s England • Econ suffered through the 1920s • Unemployment hovered around 11% • Labour Party vs Conservatives • Labour & MacDonald 1923 & 29 • 1926 General Strike by unhappy miners • John Maynard Keynes ignored
1920s France • Raymond Poincare - conservative prime minister • 1923 occupation of Ruhr Valley destroyed German economy w/ “passive resistance” • Also hurt French
1920s France • Little Entente • Yugoslavia, Romania, Czechoslovakia • New countries have much to lose if Treaty of Versailles revised • France joins to neutralize Germany
Weimar Republic • Set up in 1919 (Germany) • Avoids Spartacists in 1919 • Very weak • Germany lacked democratic tradition • Millions blamed Republic for Germany’s defeat & humiliation
Inflation in Germany • Didn’t increase wartime taxes • German gov’t printed money to pay for war (bad for econ) – Ruhr Valley • Paper money lost value • 1918: cost of bread—less than 1 mark; 1922: cost of bread—more than 160 marks; 1923: American dollar worth 4.2 trillion marks.
Attempts @ Economic Stability • Germany recovered from 1923 inflation b/c of an international committee • Dawes Plan 1924 • 200 million dollar American loan • Set more realistic schedule for reparations
Efforts at a Lasting Peace • Gustav Stresemann (German FM) & Aristide Briand (French FM) • Met at Locarno 1925 • Promised to never make war against each other • Germany admitted to the League of Nations
Efforts at a Lasting Peace cont… • Kellogg-Briand pact: 1928 • Kellogg: U.S. Secretary of State • Outlawed war • Later Germany, Italy, and Japan violated these pacts
A Flawed U.S. Economy • 3 major weaknesses: 1. Uneven distribution of wealth • Richest 5% of population received 33% all personal income (1929) • 60% made < $2,000 a year
A Flawed U.S. Economy cont… 2. Overproduction of business and agriculture • 1929: U.S.—turning out 50% world’s industrial goods • New methods led to dramatic increase in agricultural goods (drove prices down—farmers not making a profit) 3. Less demand for consumer goods
Stock Market Crash • Many middle income people bought stocks on margin- put small percentage down, then borrowed the rest from the stockbroker (bad for econ) • Thursday October 24: downward spiral
Stock Market Crash cont… • Tuesday October 29: 16 million stocks sold, market collapsed • Billions of dollars vanished • “Symptom” of the Great Depression: by 1933 ¼ of American workers did not have a job
Global Depression • U.S. placed high tariffs on imports • World trade dropped 65% • Japanese also suffered greatly • Starving families ate tree bark
Britain Takes Steps to Improve Economy • National Government: multi party coalition • Passed high protective tariffs • Increased taxes • Regulated the currency • By 1937: unemployment was cut in half
France Responds to Economic Crisis • Better off: less dependent on foreign trade • Led to political instability: 1933—35 coalition governments formed and fell • Popular Front – social reform to divert away from fascism
Socialist Governments Find Solutions • Scandinavian countries successful • Built recovery programs on tradition of cooperative community action • Massive public works • Democracy remained intact
Recovery in the U.S. • Franklin D. Roosevelt • New Deal • Large public works • Helped provide jobs • Regulations on stock market and banking system • Slow recovery
to·tal·i·tar·i·an • Of, relating to, being, or imposing a form of government in which the political authority exercises absolute and centralized control over all aspects of life, the individual is subordinated to the state, and opposing political and cultural expression is suppressed
Fascism • A system of government marked by centralization of authority under a dictator, stringent socioeconomic controls, suppression of the opposition through terror and censorship, and typically a policy of belligerent nationalism and racism. • A political philosophy or movement based on or advocating such a system of government.
Fascism • Anti-Semitic • Anti-Parliamentary • Anti-Communism/socialism • Play on fear of people • Militaristic
Fascism’s Basics • Created by Mussolini • From Roman “fasces” • Beliefs • Against democracy and Marxism • Extreme nationalism
Reasons for its Rise • Economic distress • Fear of Communism • Appealed to nationalism • Mussolini’s leadership • Weak government • No democratic tradition
Italy under Fascism • 1922-1943 led by Il Duce • Mussolini's March on Rome, October, 1922
Italy under Fascism • Controlled labor and industry • Created public works • Controlled religion • Lateran Accord—1929 • Required military service • Built alliances and empire
Germany under Hindenburgand Hitler • Reich President Hindenburg greets Reich Chancellor Hitler on March 12, 1933
Weimar Republic • 1919-1933 • Hitler formed the National Socialist Party • Advocated dictatorship, nationalism, and militarism • Belittled intelligence
Factors in Nazi Rise • Economic distress
Factors in Nazi Rise • Nationalism (after WWI) • Fear of Communism • Anti-Semitism • Hitler’s charisma & leadership • Weaknesses of Weimar government • Lack of democratic tradition
Nazis Seized Power • 1923—Nazi putsch in Munich easily suppressed • Hitler jailed • Mein Kampf • Outlines everything going to do • 1932—Nazis largest party in Reichstag 1927, Nuremberg
Nazis Seized Power • Nazi Poster for 1932 Presidential Election - "Our Last Hope: Hitler"
Nazis Seized Power • In 1933, Hitler appointed chancellor by Hindenburg • Nazis narrowly won new elections • Ended Weimar Republic • Hitler became dictator Jan. 30, 1933
Opening Session of Reichstag, March 21, 1933, Hitler taking oath of office as chancellor
Rise of Stalinism • Lenin’s “war communism” to get through Bol. Rev. • 1921 Lenin New Economic Policy (NEP) • Peasants sell goods openly • Small industry public • 1924 Lenin dies – struggle for power in Politburo - Trotsky v Stalin
Stalin Wins • Stalin’s position as Party Secretary had more influence • Policy of “socialism in one country” • Trotsky expelled murdered in Mexico on Stalin’s orders
Stalinist Era • Five Year Plans (shift in policy): • Industrialization Focus • Ex: 1928-1937 steel production rose 4-18 million tons/yr • Collectivization of Agriculture • Kulaks - land owning peasants 10 million starve
Stalinist Era cont. • Great Purge 1936-1938 millions of Old Bolsheviks arrested/killed • Secret police & Propaganda • Reverse of social legislation • Women motherhood patriotic duty • Strengthened bureaucracy
Spanish Civil War 1936-39 • General Francisco Franco led right wing military revolt against the Popular Front • Italy & Germany supported • Only Soviet Union opposed kept France & Britain out • Franco dictator til death 1975