The Rise of Fascism

The Rise of Fascism

The last of the European Absolute monarchies are ended due to WWI.

Kaiser Wilhelm IICzar Nicholas IIEmperor Franz Josef and Karl I

Last of Absolute Monarchs

Parliamentary governments with many parties

Coalitions of parties are short livedHard to focus on long term goalsResulted in weak leadership

New Democracies of Europe

Est. 1919 at end of WWI after Kaiser Wilhelm II abdicates the throne

Born in defeat1ST act was to sign the Treaty of Versailles

Germany During the Weimar Republic

No tradition of democracy in Germany7 major political parties and multiple minor

onesWeimar government, not the Kaiser, had

signed the Treaty of VersaillesGermany had not raised taxes during the war,

leading to a weakened economy after the war

Weaknesses of the Weimar Republic

Dawes Plan- $200,000,000 from American banks to help stabilize European economies

Small boom in European economies based on the American economy and investment

Roaring 20’s

Slight Economic Recovery After WWI

Oct. 24, 1929- Black ThursdayGreat wealth in stocks disappears in 1 day

Stock Market Crash

Top 5% wealthiest Americans earning 1/3 of all income in the US

To increase profits, this wealthy minority increases production of goods

Majority of Americans are too poor to buy these consumer goods without CREDIT

Overproduction and Under Consumption

Under consumption leads to cuts in production

Cuts in production leads to layoffsLayoffs mean fewer can buy products, which

leads to further cuts in productionLayoffs mean fewer can pay off debts from

credit used to buy consumer goods

Overproduction and Under Consumption

During WWI, Europe’s farms were battlefields and Europe’s farmers were soldiers

US farmers had overproduced during WWI to meet European demand US farmers had improved farms, buying more land and machines, or

switched to cash crops assuming consumption levels would remain stable

US farmers had bought land and machines on credit As Europe begins to farm again after WWI, prices drop. Grain hits

lowest prices in 400 years.

Farmers

When the economy starts to go down, more and more people can’t pay back debts from credit they took

As debts aren’t paid, banks start to failAs banks fail, people start to panic and pull their money from the

banksBanks had invested deposit money and could not cash all deposits

when called

The Banks Begin To Fail

American banks failUS investment in Europe stopsEuropean economy begins to failDepression spreads world wideOnly one major world power doesn’t

experience the Depression

The Great Depression

US loans stop, causing German economy to collapse

German factories stop production and fire workers

Banks close40% unemployment by 1932

Economic Depression in Germany

1918-1923 Drastic increase in inflation in Germany 1918 price of bread- 2 Marks Dec. 1921 price of bread- 40 Marks Dec. 1922 price of bread- 1500 Marks Summer 1923 price of bread- 4,000,000 Marks, 1 beer is 2,000,000 Marks Upper classes not as affected because price of land and factories rise with

inflation, but salaries can’t keep up

Hyperinflation

Nazi Party is largest political party by 1932January 1933- Hitler is named Chancellor by

German PresidentAs Chancellor, Hitler calls for parliamentary

elections

Economic Situation Makes Hitler Popular

The night before parliamentary elections, the Reichstadt is set on fire.

Hitler blames the communists, the main competition for the Nazis in the election, for the fire.

Nazis win a majority in parliament

Reichstadt Fire

Passes Enabling Act which gives Hitler absolute power for 4 years.

Hitler has risen to absolute power through the democratic system of the Weimar Republic.

Nazi Dominated Parliament

Because of Great Depression, many had lost faith in the new democratic governments of Europe (and elsewhere).

Some support Communism (why?)Many others support Fascist leaders

Lack of Faith in Democracy

Strongly Nationalistic- nations must struggle/Social Darwinism Belief that each class had a function in society. Individuals must struggle

, just as nations must. Those who deserve to, will rise to the top. Allied themselves with aristocrats and industrialists. Fascism legitimized

these groups place of privilege in society and didn’t threaten this privilege as communism did

Autocratic Government State is more important than the individual

Fascism