Years of Crisis Ch 31 1919-1939. Section 1 Skip Yay!!!

Years of CrisisYears of CrisisCh 31Ch 31

1919-19391919-1939

Section 1Section 1 SkipSkip

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31.231.2

After WWIAfter WWI Nearly every major European country was Nearly every major European country was bankruptbankrupt

Only USA + Japan were in better Only USA + Japan were in better financial shape than before WWIfinancial shape than before WWI

Europe’s domination in world affairsEurope’s domination in world affairs Europe’s last absolute rulers overthrownEurope’s last absolute rulers overthrown

Some democratic countries had Some democratic countries had many political parties which made it many political parties which made it difficult to govern effectively (w/o a difficult to govern effectively (w/o a majority in gov.’t, laws couldn’t be majority in gov.’t, laws couldn’t be passed). They had to form a passed). They had to form a coalition gov.’tcoalition gov.’t (a temporary alliance (a temporary alliance of several parties) which seldom of several parties) which seldom lasted long lasted long

Frequent changes in gov.’t Frequent changes in gov.’t made it hard to develop a made it hard to develop a strong leadership or to strong leadership or to accomplish long-term goalsaccomplish long-term goals

The Weimar The Weimar RepublicRepublic

Democratic German gov.’t est. in 1919Democratic German gov.’t est. in 1919 Major weaknesses:Major weaknesses:

1. Germany’s lack of a strong 1. Germany’s lack of a strong democratic traditiondemocratic tradition

2. Numerous political parties2. Numerous political parties

3. Blamed by Germans for the 3. Blamed by Germans for the humiliating terms of the Treaty of humiliating terms of the Treaty of Versailles (war-guilt clause + loss of Versailles (war-guilt clause + loss of land)land)

Severe inflationSevere inflation Instead of taxes to pay for the war, Instead of taxes to pay for the war,

Germany printed $.Germany printed $. In 1918, bread cost less than 1 In 1918, bread cost less than 1

mark, but in 1923, it cost over 200 mark, but in 1923, it cost over 200 billion marksbillion marks

1924, 1924, The Dawes PlanThe Dawes Plan provided a $2.5 bil provided a $2.5 bil loan from the US to stabilize Germany’s loan from the US to stabilize Germany’s economyeconomy

By 1929, German factories were By 1929, German factories were producing as much as they had producing as much as they had before the warbefore the war

German banknotes used as fuel. It was cheaper than wood.

Warning Warning SignsSigns

Farm Foreclosure RateFarm Foreclosure Rate(1920-1930)(1920-1930)

During 1920s, US economy appeared to During 1920s, US economy appeared to be booming; however, it had flaws:be booming; however, it had flaws:

1. Uneven distribution of wealth 1. Uneven distribution of wealth (Wealthiest 5% received 33% of (Wealthiest 5% received 33% of income in 1929)income in 1929)

Many were too poor to buy much of Many were too poor to buy much of the goods being producedthe goods being produced

2. Overproduction2. OverproductionBecause many goods weren’t being Because many goods weren’t being

sold, factories began laying off sold, factories began laying off workersworkers

Fewer people could buy goods, Fewer people could buy goods, led to a downward spiralled to a downward spiral

Farmers were also overproducing w/ Farmers were also overproducing w/ help of new scientific methods + help of new scientific methods + machinery (also face world machinery (also face world competition)competition)

Couldn’t pay off loans + Couldn’t pay off loans + weakened banksweakened banks

Stock Stock

Market Market

CrashesCrashes

Crowd gathering on Wall Street after the 1929 crash.

Wall Street, NYC was the financial capital Wall Street, NYC was the financial capital of the worldof the world

Stock prices had soaredStock prices had soaredBy Sept. 1929, some people began to By Sept. 1929, some people began to

think stock prices were unnaturally think stock prices were unnaturally + would soon , so they started to + would soon , so they started to sell their stocks until the stock sell their stocks until the stock market plummetedmarket plummeted

– Everyone was selling + no one Everyone was selling + no one was buyingwas buying

““Black Tuesday” – Tues. Oct. Black Tuesday” – Tues. Oct. 29, 1929, the market crashed29, 1929, the market crashed

The Great The Great DepressionDepression

Stocks were worthless + many Stocks were worthless + many people were living in povertypeople were living in poverty

Unemployment as production, Unemployment as production, prices, + wages prices, + wages

Thousands of businesses Thousands of businesses failedfailed

Banks closed + 9 mil people Banks closed + 9 mil people lost their savings when lost their savings when banks had no $banks had no $

Many farmers lost their land Many farmers lost their land b/c they couldn’t pay their b/c they couldn’t pay their mortgagemortgage

By 1933, ¼ of American By 1933, ¼ of American workers were out of workworkers were out of work

This prolonged This prolonged business slump was business slump was The Great DepressionThe Great Depression

American banks began demanding American banks began demanding repayment of their overseas loans + repayment of their overseas loans + American investors withdrew $ from American investors withdrew $ from EuropeEurope

Congress placed high tariffs on Congress placed high tariffs on imported goods (so people would imported goods (so people would buy American goods)buy American goods)

Other countries did the same + Other countries did the same + world trade 65%world trade 65%

Set off a world wide Set off a world wide depression felt especially depression felt especially hard in Germany + hard in Germany + Austria (due to war debts Austria (due to war debts + dependence on + dependence on American loans)American loans)

Collapse of World Trade Following Smoot-Hawley Tariff of 1930

Attempted Attempted Solutions:Solutions:

Protective tariffsProtective tariffs TaxesTaxes Regulated currencyRegulated currency Interest rates (to promote Interest rates (to promote

industrial growth)industrial growth)Brought a slow but steady Brought a slow but steady

recoveryrecovery

Moderates, socialists, + Moderates, socialists, + communists formed a coalition communists formed a coalition to protect against Anti-to protect against Anti-democratic forces + passed democratic forces + passed reforms which were offset by reforms which were offset by priceprice

Unemployment remained Unemployment remained , but democracy was , but democracy was preservedpreserved

Britain:Britain:

France:France:

Socialist Socialist Gov.’tsGov.’ts

USAUSA

Built recovery programs on existing Built recovery programs on existing tradition of community cooperationtradition of community cooperation

taxes to pensions for elderly +taxes to pensions for elderly +

unemployment benefitsunemployment benefitsSuccessfulSuccessful

Franklin Roosevelt became president Franklin Roosevelt became president (1932) + began a program of gov.’t (1932) + began a program of gov.’t reform called the reform called the New DealNew Deal::

Large work projects provided jobsLarge work projects provided jobsNew gov.’t agencies gave financial New gov.’t agencies gave financial

assistance to businesses + farmsassistance to businesses + farmsA lot of $ spent on relief programsA lot of $ spent on relief programsRegulations passed to reform the Regulations passed to reform the

stock market + banking systemstock market + banking systemSuccessfulSuccessful

BUT Great depression didn’t end until WWIIBUT Great depression didn’t end until WWII

End Section 2End Section 2

31.331.3

FascismFascism A militant political movement that A militant political movement that denies individual rights, emphasizes denies individual rights, emphasizes loyalty to the state + obedience to its loyalty to the state + obedience to its dictatorial leader, + has one party ruledictatorial leader, + has one party rule

Believes nations must struggle + that Believes nations must struggle + that peaceful nations are conqueredpeaceful nations are conquered

Otherwise, has no clear theory Otherwise, has no clear theory (Past ex: Germany, Italy, (Past ex: Germany, Italy,

+ Spain)+ Spain) Similar to Communism b/c:Similar to Communism b/c:

1. Ruled by dictators who didn’t 1. Ruled by dictators who didn’t allow other political partiesallow other political parties

2. Denied individual rights2. Denied individual rights

3. State was supreme3. State was supreme

4. Used censorship, indoctrination, 4. Used censorship, indoctrination, + secret police+ secret police

Mostly made up of upper + middle Mostly made up of upper + middle classes + war veteransclasses + war veterans

Italy + Benito Italy + Benito MussoliniMussolini

Fascism’s rise there was fueled by bitter Fascism’s rise there was fueled by bitter disappointment over lack of territorial disappointment over lack of territorial gains after WWI, inflation + gains after WWI, inflation + unemployment, + the democratic unemployment, + the democratic gov.’t’s inability to take actiongov.’t’s inability to take action

Newspaper editor + politician Benito Newspaper editor + politician Benito Mussolini promised to revive the Mussolini promised to revive the economy, rebuild armed forces, + economy, rebuild armed forces, + provide strong leadershipprovide strong leadership

As economic conditions his popularity As economic conditions his popularity

Fascists attacked Communists + Fascists attacked Communists + Socialists on the streetSocialists on the street

Oct. 1922, 30,000 Fascists marched on Oct. 1922, 30,000 Fascists marched on Rome + demanded the king put Rome + demanded the king put Mussolini in charge of the gov.’t + he Mussolini in charge of the gov.’t + he diddid

Mussolini known as “Mussolini known as “Il DuceIl Duce” (The ” (The Leader)Leader)

He would never have total control He would never have total control as Hitler + Stalin didas Hitler + Stalin did

Germany Germany + the of + the of Adolf HitlerAdolf Hitler

Hitler had modest beginnings Hitler had modest beginnings before serving in WWIbefore serving in WWI

1919, he joined the Nazis 1919, he joined the Nazis ((NazismNazism is the German brand of is the German brand of Fascism). They believed:Fascism). They believed:

1. The Treaty of Versailles 1. The Treaty of Versailles should be overturned should be overturned (Germany lost land + (Germany lost land + signed “war guilt” clause)signed “war guilt” clause)

2. Communism should be 2. Communism should be stopped stopped

Adopted the swastika as Adopted the swastika as their symboltheir symbol

Hitler became the leader of the Hitler became the leader of the Nazis + led an attempt to seize Nazis + led an attempt to seize power in Munichpower in Munich

It failed + he went to jail It failed + he went to jail for 9 monthsfor 9 months

In jail he wrote In jail he wrote Mein KampfMein Kampf (My (My Struggle) which outlined his Struggle) which outlined his beliefs:beliefs:

1. Germans – called Aryans 1. Germans – called Aryans – – were the master race were the master race

2. Non-Aryans such as Jews, 2. Non-Aryans such as Jews, Gypsies, etc… were Gypsies, etc… were

inferiorinferior

3. The Treaty of Versailles 3. The Treaty of Versailles was an outrage + he was an outrage + he vowed to regain lost vowed to regain lost

landslands

4. Germans needed more 4. Germans needed more “living space” + to get it “living space” + to get it

he he would conquer East would conquer East Europe Europe + Russia + Russia

After prison he rejoined the Nazis, After prison he rejoined the Nazis, who influence drastically once who influence drastically once the Great Depression beganthe Great Depression began

Light purple are areas lost after WWI

Germany Germany Under Under Hitler’s Hitler’s LeadershipLeadership

The German president named Hitler as The German president named Hitler as Chancellor Chancellor – – HE CAME INTO POWER HE CAME INTO POWER LEGALLY!!!LEGALLY!!!

Hitler called for new elections which gave the Hitler called for new elections which gave the Nazis control of parliamentNazis control of parliament

Germany became a totalitarian state. All Germany became a totalitarian state. All other political parties were banned + Hitler other political parties were banned + Hitler became known as “became known as “Der FuhrerDer Fuhrer” (The Leader)” (The Leader)

Military production , creating jobs + Military production , creating jobs + improving the economyimproving the economy

He established a secret police (The He established a secret police (The Gestapo) Gestapo)

Used widespread propagandaUsed widespread propaganda Books that went against Nazi beliefs Books that went against Nazi beliefs

were burnedwere burned Boys were forced to join the Hitler Youth Boys were forced to join the Hitler Youth

+ girls The League of German Girls+ girls The League of German Girls Churches forbidden to criticize the NazisChurches forbidden to criticize the Nazis

Hitler’s War Hitler’s War on the Jewson the Jews

Jews made up < 1% of Jews made up < 1% of Germany’s population, but Germany’s population, but Nazis blamed them for all of Nazis blamed them for all of Germany’s problemsGermany’s problems

Began a wave of Began a wave of anti-anti-SemitismSemitism (prejudice (prejudice against Jews) against Jews)

Passed laws that took away the Passed laws that took away the rights of Jewsrights of Jews

Violence against Jews Violence against Jews 11/19/1938 11/19/1938 KristallnachtKristallnacht

(Night of the Broken (Night of the Broken Glass) – Nazi mobs Glass) – Nazi mobs attacked Jews in their attacked Jews in their homes + destroyed Jewish homes + destroyed Jewish businesses + Synagoguesbusinesses + Synagogues

Other Other CountriesCountries

in Europein Europe

Democracy only survived in Democracy only survived in countries w/ a strong countries w/ a strong democratic traditiondemocratic tradition

Except for Czechoslovakia Except for Czechoslovakia (only country in Eastern (only country in Eastern Europe to remain a Europe to remain a democracy)democracy)

Many fall to dictatorsMany fall to dictators

End Section 3End Section 3

31.431.4

Aggressors + Appeasers:Aggressors + Appeasers: AggressorsAggressors

1. Japan1. Japan

During 1920s, it had become During 1920s, it had become democratic but its gov.’t was weak + had democratic but its gov.’t was weak + had no control over the militaryno control over the military

When the Great Depression hit, gov.’t When the Great Depression hit, gov.’t was blamed + they restored traditional was blamed + they restored traditional military control over gov.’t + made military control over gov.’t + made Emperor Hirohito the symbol of state Emperor Hirohito the symbol of state powerpower

Wanted to solve economic problems w/ Wanted to solve economic problems w/ foreign expansion, so they seized NE foreign expansion, so they seized NE China + set up a puppet gov.’tChina + set up a puppet gov.’t

11stst direct challenge to the direct challenge to the League of NationsLeague of Nations. The League . The League protested, Japan withdrew from the protested, Japan withdrew from the League + conquered more of ChinaLeague + conquered more of China

The League’s failure encouraged more The League’s failure encouraged more Fascist invasionsFascist invasions

Imperial Japanese Army troops bayoneting captive Chinese

2. Italy2. Italy Invaded Ethiopia to avenge a Invaded Ethiopia to avenge a past failed attacked – past failed attacked – successfulsuccessful

The League condemned The League condemned the attack but did nothing the attack but did nothing to stop it + risk a warto stop it + risk a war

Later seized AlbaniaLater seized Albania

3. Germany3. Germany Hitler states that Germany would no longer Hitler states that Germany would no longer abide by restrictions imposed upon it by abide by restrictions imposed upon it by the Treaty of Versaillesthe Treaty of Versailles

size of armysize of armySent troops into the Rhineland (a Sent troops into the Rhineland (a

demilitarized zone between Germany demilitarized zone between Germany + France)+ France)

Hitler’s power w/in GermanyHitler’s power w/in GermanyPut balance of power in Put balance of power in

Germany’s favor (France + Germany’s favor (France + Belgium now open to attack)Belgium now open to attack)

The British + French practiced The British + French practiced appeasementappeasement (giving in to an aggressor to (giving in to an aggressor to keep peace)keep peace)

Weak response from Britain + France Weak response from Britain + France encouraged Hitler to speed up encouraged Hitler to speed up expansionexpansion

Hitler announced that Germany Hitler announced that Germany would absorb Austria + would absorb Austria + Czechoslovakia into the Czechoslovakia into the 33rdrd Reich Reich (German Empire). (German Empire).

AnschlussAnschluss (union b/w Austria (union b/w Austria + Germany) was prohibited + Germany) was prohibited by the Treaty of Versailles. by the Treaty of Versailles. When Hitler’s army marched When Hitler’s army marched into Austria they were into Austria they were welcomed welcomed

Britain + France did Britain + France did nothingnothing

Hitler demanded the Sudetenland (part of Hitler demanded the Sudetenland (part of Czechoslovakia w/ many ethnic Germans) be Czechoslovakia w/ many ethnic Germans) be given to Germany. The Czechs refused + given to Germany. The Czechs refused + asked for help from Franceasked for help from France

Britain + France met w/ Germany + Britain + France met w/ Germany + Italy (but not w/ the Czechs!) at the Italy (but not w/ the Czechs!) at the Munich ConferenceMunich Conference + agreed to let + agreed to let Germany have the Sudetenland if it Germany have the Sudetenland if it respected Czechoslovakia’s new respected Czechoslovakia’s new bordersborders

England’s Prime Minister Neville England’s Prime Minister Neville Chamberlain arrived back in Chamberlain arrived back in England + proclaimed that they England + proclaimed that they would have “peace for our time”would have “peace for our time”

6 months later Hitler took all of 6 months later Hitler took all of Czechoslovakia + demanded the Polish port Czechoslovakia + demanded the Polish port of Danzig (it had once been part of Germany)of Danzig (it had once been part of Germany)

Poles refuse, turn to Britain + France for aidPoles refuse, turn to Britain + France for aid

Soviet poster showing Western powers giving Hitler Czechoslovakia on a dish. Inscription on the flag: "On

towards the East!"

Hitler + Hitler + Stalin’s Stalin’s Temporary Temporary TruceTruce

Britain + France hoped to make an Britain + France hoped to make an agreement w/ the Soviets for agreement w/ the Soviets for support against Hitler.support against Hitler.

Instead, Stalin signed a non-Instead, Stalin signed a non-aggression pact w/ Hitler (Aug. aggression pact w/ Hitler (Aug. 1939) in which each side promised 1939) in which each side promised publically to never attack the otherpublically to never attack the other

Spain’s Spain’s Civil WarCivil War

Had a short lived republic 1931-36 Had a short lived republic 1931-36 In 1936, army leaders favoring a In 1936, army leaders favoring a

fascist gov.’t joined Gen. Francisco fascist gov.’t joined Gen. Francisco Franco in a revolt.Franco in a revolt.

Hitler + Mussolini sent Hitler + Mussolini sent supplies to Francosupplies to Franco

Only USSR supported the Only USSR supported the republican gov.’trepublican gov.’t

After 3 yrs, Franco’s army winsAfter 3 yrs, Franco’s army wins

The USAThe USA Most Americans supported a policy of Most Americans supported a policy of isolationism isolationism (the belief that political (the belief that political ties to other countries should be ties to other countries should be avoided)avoided)

Mid-1930s, Congress passed 3 Mid-1930s, Congress passed 3 Neutrality Acts which banned loans + Neutrality Acts which banned loans + the sale of arms to nations at war.the sale of arms to nations at war.

End Section 4End Section 4