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Europe Gets Depressed

Explore the varied responses to the Great Depression in Europe, from Keynesian ideas to fascist regimes, and evaluate the costs and benefits of each approach. Discover the impact on society and the economy, and consider which system you would prefer to live under during such challenging times.

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Europe Gets Depressed

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  1. Europe Gets Depressed The Great Depression of the 1930s

  2. Great Depression Causes How do we respond? Keynesian Ideas = Government ACTION + Deficit Spending

  3. In GB… Ramsey MacDonald’s “National Government” ↑↑Taxes + ↓↓ Benefits Off Gold Std = cheap Tariff on “outside” imports (non-Empire) = Stagnant but Stable Avoids fascism, WHY? In France… ↓ Wages + ↑Tariffs >>> Gov’t Change Right Wing… Fascist? Action Francaise Croix de Feu Stavisky = corruption >> Is a “coup” brewing? Elected Left Wing coalition led by Leon Blum + the Popular Front Strikes > Pro-Labor ∆ > National Economy 3rd Republic barely survives Gr Dep Responses: GB v F

  4. Democracy Responses, The Bottom Line… • Both GB + F survived the initial shock of Gr Dep • Each followed own path • Keynes Ideas NOT followed • Neither GB nor F solved the problem • What else can one do in such a situation?

  5. Gr Dep Responses: Scandinavian Success • Moderate Socialist governments in place • Developed Ag / Industry “Co-Operatives” • Privately owned & operated by group • Expanded social services • Pensions, Ū benefits, healthcare… • Housing assist, paid vacation… trade-off? • High taxes to pay for large benefits! • Is it worth it?

  6. Fascist Response… • But wait… • What is Fascism again? • Totalitarian • State controls ALL • State over People • State #1 • A Leader • Dictator • Duty of Citizen • Obey, Serve • Rights Limited • Control People IL Duce & Der Führer Gen. Franco of Spain

  7. Fascist Response: Italy • Mussolini goal: Self-sufficiency! • Public works + Subsidy + Tariffs =  • Corporatism = Planned economy + private capital ($$) + gov’t assist w/ labor • Unions serve State (Fascist) = NO strike! • Syndicates > Corporations: Major Industry • ↑↑ Gov’t control + ↑↑ Corruption • Fascism (Italy) = ↓↓↓ economy =  • Invades Ethiopia > L of N limited sanctions

  8. Another Fascist Response: Nazi Germany • Seize control • Article 48 + Enabling Act • Purges (Roehm) + Police State (SS) • State control: Society + Economic Life • No unions / rights >> Labor Front = arbitration • Capital ($$) serves State • Public Works • Autobahn + Canals + Farms = Fully Employed! • Renounce Versailles Treaty • Re-Armament >> Jobs! Technology ↑↑

  9. Soviet Response… • Forced Industrialization • Gosplan > 5-Year Plans (Quotas) • Economic Growth !! Cost?? • Forced Collectivization (Farms) • Kulaks + Religion = Enemy of State • Ukrainian Famine • Forced Urbanization • ↓↓ Conditions + Shortages =  Fear! • Forced Unity • Great Purge = Show Trials • Gulag / Torture / Execution

  10. Great Depression Responses: • At first glance, who was most successful? • Why? • Evaluate the responses in terms of Costs v. Benefits • Under which system would you wish to live given the circumstances?

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