Between the Wars: Depression & Authoritarianism – 1930s Chapter 29, part2 Pg. 690-703
Jan 16, 2016
Chronology & Themes
Economic depression created broad, global effects: political polarization greater state
control of economy loss of confidence in
democracy
Causes & Debacle of Economic Depression
Stock market surge (based
on loans)
Post-War Inflation
(illusion ofprosperity)
Competition& Rising Efficiency
Over-production
Reduced prices & profits
LostConfidence
1929 stockmarket crash
Bank failures & dried upInvestment
Production slows
Risingunemployment
Economiccollapse
Shattered social &
political ideals
Economic Responses in Europe & U.S. W. Euro gov’ts responded ineffectively
High tariffs & spending cuts further slow economies
Inspired political polarization or overthrow EX – Popular Front
Scandinavia, the exception, increased spending which created a welfare state
U.S. initially duplicated European mistakes, but New Deal takes Scandinavian approach by increasing spending & reforming banking Restored faith in gov, preventing extreme
political change
Germany – Nazi Political Response
Depression & Treaty of Versailles make fascism a clear choice
Fascist, totalitarian gov, led by Hitler, quickly crafted Emphasized unity, strong leadership &
military, economic planning Purged opponents w/ Gestapo Used personal hatred of Jews to create
scapegoat for all Germany’s ills
Hitler speech before Reichstag (July 13, 1934) addressing his elimination of political opponents.
"I gave the order to shoot those who were the ringleaders in this treason, and I further gave the order to burn down to the raw flesh the ulcers of this poisoning of the wells in our domestic life. …I am ready to undertake the responsibility at the bar of history for … the dearest thing that has been given us in this world--the German people and the German Reich!"
Europe – Fascism Spreads in Response
Hitler’s success lead to spread of fascists ideas in E. Europe Hungary, Romania
Spain experiences civil war as result of liberal feuds w/ authoritarian supporters Not fully fascist, but new authoritarian gov
takes root advancing conservatism W. Euro & U.S. respond weakly, fearing
another war & distracted by depression
Latin America – Political Response
Depression & weak middle-class led to floundering liberalism → polarization
Authoritarianism w/ fascist sympathies succeeds Mexico: Corporatism – land reform, communal
farms, state oil monopoly, appeal Brazil & Vargas: state action in economy,
repressive w/o broad support Argentina & Peron: authoritarian w/ broad
support by creating alliance of workers, industrialists & military
Japan – Militarism in Response
Depression sparks polarization w/ military exerting executive control
Imperialist ambitions intensified & expanded for economic protection Manchuria, occupation of China, & SE Asia? Promoted culture & economy in Korea
Economy crashed & responded quickly Increased gov spending reduced
unemployment Assembly line & lifetime contracts → rapid
economic growth & stability
Soviet Union - Stalinism
Buffered from depression effects by separate communist economy
Collectivization (collective farms)+’s: share expensive machines, control
peasants, stable food supply, free labor for industry
-’s: messy transition = famine, central planning w/ little incentives
Industrialization (major goal) Overwhelming success w/ state five-year
plans, clear goals, new factories Replaced price competition w/ state allocation
Soviet Union - Stalinism
Industrialization met w/ incentives, welfare services, & problem-solving
Stalin exerted total control Controlled arts & sciences Used secret police & party purges ruthlessly
USSR gradually shift from inward focus to more active diplomacy Tension w/ Germany, but brief alliance to
regain territory