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Inter-War Years Inter-War Years Period between WWI and WWII Great uncertainty Time of despair Great Depression Great Depression American stock market crash, 1929 Global economy, so impacted all Worst economic disaster in American history Great Depression --- Causes Policies of Federal Reserve System (Fed) Expanded credit and money supply 1927 To fuel consumer spending Lowered interest rates Created bubble False sense of financial security Great Depression --- Causes Mass consumerism Fed policies “worked” short-term In fueling spending But prosperity was a mirage, not “real” Not result of high savings Bubble burst 1929 Great Depression --- Causes Reckless banking practices Felt invulnerable because of Fed policies Good times here forever … so they thought Unsound investments Once bubble burst, had very little Great Depression Record high unemployment Record low productivity Every economic indicator terrible Inter-War Years Most rejected classical liberalism Blamed laissez-faire capitalism for the depression But false to do so Fed policies were not laissez faire Classical liberals rejected those Fed policies But classical liberals blamed al the same Inter-War Years Most turned to different solutions Progressive liberalism Communism Fascism Democratic Nations England Economy weak even before Depression Depression was double-whammy Labor Party won majority 1929 Quasi-socialist, but not full communist But no positive results John Maynard Keynes British economist New ideas o Massive government spending o To stimulate economic growth o Government debt = positive Rejected classical liberal ideas of limited government and balanced budgets England Conservative party won 1931 Relied on balanced budget, rejected Keynesianism Some success Employment on rise Depression not over, but past the worst of it France Uncertainty, anxiety Economic woes Swung from conservative regimes to socialists Economy still as bad by late 1930s Many starting to believe German fascism better Scandinavian Nations Turned to social democracy Government welfare state Old-age pensions Unemployment insurance Free housing Free pregnancy treatment Government-funded vacations for workers Very high taxes United States Had always been most classical liberal of all But rejected its founding beliefs Accepted progressive liberalism Under Herbert Hoover and Franklin Roosevelt New Deal Higher taxes, government regulation of business Government economic planning, imposed …. o Production levels, set prices o Arbitrated wage disputes o Largest government intrusion in economy in US history Keynesian approach --- government spending to stimulate economy Beginning of welfare New Deal Recession within the Depression, 1937-8 After 10 years of Keynesianism, failure o High unemployment o Low productivity Yet most still devoted to New Deal, progressive liberalism Still rejected classical liberalism Anti-Colonialism Colonies of European empires resentful Attempts of independence The Middle East New independent nations formed Saudi Arabia Iraq Iran Turkey Heart of old Ottoman Empire Most Muslims But turned into westernized republic More European in style than Middle Eastern Mahatma Ghandi Led independence movement against Britain Civil disobedience --- peaceful, nonviolent resistance Gathered huge following 1935 – India won some self-government Outright independence after WWII Authoritarian States Problems in Italy Soldiers angry – Fought during WWI – Felt civilians did not appreciate their service – Or understand their experiences – War was difficult – Angry, bitter Problems in Italy Italians felt cheated after WWI – Did not receive all the territory they demanded – Thought England, France cheated them – Not rewarded for their service to the Allies – Angry, bitter – National honor besmirched Problems in Italy Economic problems – Inflation disaster – Middle-class wiped out – Standard of living plumetted Benito Mussolini Leader of Italian fascism Former socialist Rejected universal nature of socialism Preferred nationalism Fascism Right-wing nationalism – Not just patriotism – Exalted the Nation above all else – Willingness to wage war for national glory – Extreme militarism – saw other nations as enemies Fascism Rejection of democracy, liberalism – Weak, ineffective, effeminate – Too much focus on the individual, not the Nation – Preferred dictators Fascism Progressive liberal economic policies – Akin to US New Deal – Government economic planning – Support for workers – Guaranteed high wages, welfare programs – But also assistance for corporations Fascism Rejection of socialism – Socialists focused on universals – Called for alliance of all workers – Fascists only focused on the Nation – Rejected socialism only on nationalist grounds Seizing Power Fascist violence Against socialists newspapers, organizations By 1921, over 200,000 armed fascists Mussolini demanded power 1922 --- named Prime Minister Fascism Fascism seemed like answer to millions National glory Economic recovery Democratic government had been a failure Third way --- neither socialism nor democracy Becoming a Dictator Cult of the Duce (leader) – His posters everywhere – Massive propaganda – Almost god-like status – All-powerful ruler – Mystical connection with the people Becoming a Dictator Fascists the only legal party – One-party rule – Other parties prohibited – Complete censorship of news Becoming a Dictator No liberties – No democracy – No rights – Secret police – No trial by jury, due process Becoming a Dictator Progressive liberal economics – Economy planned – Prices, production level, labor policies – Set by government and major corporate leaders – “Codes” imposed on entire economy Fascist Totalitarianism All-powerful government No individual freedoms allowed Foreign Policy o Restore national glory o To restore the old Roan Empire o Foreign wars (to be discussed next week) o Not all that successful o But inspired by extreme nationalism Fascism in Germany o Similar story in Germany o More most, fascism seemed like only solution Problems in Germany Treaty of Versailles (1919) – Way WWI ended set the stage for WWII – Very unpopular treaty – Angered millions of Germans Treaty of Versailles Germany received sole blame for WWI Lost colonies and part of its own land Reparations to France and England Drastic reductions in its military Problems in Germany Weimar government – At end of WWI, revolution in Germany – Quasi-socialist, democratic – Democracy – Nicknamed the Weimar Republic Weimar Republic Angered many Germans Weak, ineffective Moderately socialist (not communist) Many Jews involved Weimar Republic Accepted the Treaty of Versailles Anger directed towards Weimar Germany “stabbed in the back” By socialists and Jews Growing support for extreme nationalism Weimar seemed “un-German” to many Problems in Germany Horrible economy – Far worse than the US – Hyperinflation – Money lost its value literally overnight German Hyperinflation Poor economy in early 1920s Government responded by printing money Disastrous results Hyperinflation set in Run away levels of inflation German Hyperinflation Prices doubled every two days Deutschmark became literally worthless Became toy for kids, had lost its purchasing power Problems in Germany Overall – National glory gone – Absolute poverty – Weak government – Perceived domination of Jews and socialists Fascists in Germany National Socialist German Workers Party Or Nazis Combination of liberal workers’ parties And right-wing nationalism Adolf Hitler Led the Nazis And SA (Stormtroopers), Nazi army/gang Used violence and intimidation Hitler and the Beer Hall Putsch 1924 coup against Weimar Republic Failed, imprisoned Wrote Mein Kampf (My Struggle) Outlined Nazi fascist beliefs Nazi Fascism Similar to Italian fascism But more virulently racist And anti-Semitic Lebensraum “Living space” for German nation Extreme social darwinism German nation to conquer land itself Non-Germans had no rights, were unfit Rise of Hitler Problems continued throughout the 1920s Conservatives supported Hitler Could solve problems And be controlled by traditional conservative elites Never saw the danger of Hitler Rise of Hitler Hitler appointed prime minister 1933 By President Hindenburg Hitler called for national elections Crisis Reichstag building burned A week before the elections Blamed on Jews and socialists Anti-communist hysteria But all Nazi propaganda, lies The Nazis Took Power More popular than ever Only Nazis could save Germany Huge victory in election Totalitarian State Like Italy But more complete Hitler had firmer grip than Mussolini No liberties whatsoever in Germany Hitler As Dictator Enabling Act 1933 – Gave Hitler emergency power – To deal with “socialist threat” Nazis as Dictators All parties illegal except Nazis Local governments abolished All independent labor unions abolished New Nazi-controlled union mandatory Jews and non-Nazis removed from power Concentration camps for enemies The Problem with the SA Traditional military distrusted SA Hitler needed military more than SA SA purged, leaders murdered Night of Long Knives Military now supported Hitler Hitler named president once Hindenburg died (1934) Destruction of the Republic By 1934 Weimar republic dead Hitler dictator Of a new Nazi Germany Hitler As Dictator Police state – SS, Hitler’s private goon squad, bodyguards – Gestapo, secret police – No individual rights – Complete censorship, no freedom of speech – Arbitrary arrests, no trials or juries Hitler As Dictator Hitler Youth – Nazi version of Boy and Girl Scouts – Encouraged to spy on parents and neighbors – Turn in all enemies of the Nation Hitler As Dictator Nazi control of major institutions – Churches – Schools – Businesses – No independent source of power – All institutions under control of Nazi party Nazi Anti-Semitism Aryan superiority – Aryans = pure-blooded Germans – Master Race – Even those who did not live in Germany itself – Aryans should be united into German Empire Not Aryans Jews Socialists (whether Germans or not) Slavs “Mongrel races” (French, English, Dutch) Gays (forced to wear pink triangles) Handicapped Nazi Anti-Semitism Sought to remove Jews from leadership And all areas of influence Remove from German society To purge Germany of Jewish presence Anti-Semitism Nuremberg Laws (1935) – Jews lost citizenship – Jews kicked out of schools – And most professions – Removed from homes, placed in ghettos – Then moved from ghettos to concentration camps Targeting the Jews Yellow Star (Jews) Pink Triangle (Gays) Anti-Semitism Nuremberg Laws (1935) – Prohibited mixed marriages – And sex between Jews and German citizens – Jews forced to register with government – Forced to wear yellow stars Kristallnacht (1938) o Night of Broken Glass o Attack on synagogues, Jewish businesses o Absolute destruction of Jewish communities o 30,000 sent to concentration camps Concentration Camps Not death camps (yet) Just place to put Jews And other non-Aryans Later turned into extermination camps Fascism in Spain Also Similar story as Italy and Germany Same problems Disenchanted with democratic government Preferred fascism Economic growth National glory Effective government Spanish Civil War National Front Leftists, socialists, republicans, secularists Aided by Soviet Union (communist Russia) Nationalists Fascists, conservatives, military, Catholic Church Aided by Italy and Germany General Franco Led Fascists/Nationalists Prevailed in civil war 1939 Fascist dictator until his death 1975 Authoritarianism in East Europe Poland Yugoslavia Bulgaria Hungary (fascist) Romania Democracy declining Classical liberalism nearly dead Lenin’s NEP Soviet Union New Economic Policy 1921 Temporary compromise with capitalism To jumpstart economic growth And then go to full communism NEP Peasants could sell produce for private gain Small stores could earn private profit Communism for rest …. Corporations, banks, railroads, mines Communist Totalitarianism Same type of all-powerful government As in Italy, Germany Different goals Lenin a communist, not fascist But methods of ruling the same Communist Totalitarianism No democracy or civil liberties Arbitrary arrests, complete censorship All other parties prohibited Police state, under KGB After Lenin? Lenin died 1924 Trotsky and Stalin competed to be successor Most supported Trotsky Brilliant, right-hand man to Lenin Stalin smeared him, had him exiled, later murdered Stalinist Purges Killed off all personal and political enemies Over 8,000,000 More brutal than even Hitler Shown here signing a death warrant Economic Policies Abolished NEP Proceeded with full-scale communism All private property abolished Businesses Money Shops Farms Agricultural Collectivism Peasants moved from traditional land Into new government collective farm Strong opposition Most produce taken by government for Red Army Agricultural Collectivism Peasants outraged Worse off than under czars Stalin cut off food completely Starved nearly 10,000,000 to death More killed by Stalin than by Hitler Industrialization Program Intensified industrialization Imposed very high quotas for workers Wages fell nearly 50% Standard of living on decline Yet working harder than ever Work Camps Prisons for trouble makers In Siberia, blistering cold Extreme working conditions Many died Brutal totalitarian regime