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Rise of Hitler / Causes of WWII Basic Review
The Great Depression and Economic
Nationalism
Causes in the USA:
o
o
o
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Overproduction
Uncontrolled use of credit-buying (concealed over-production)
Speculation
Weak banking structure
Uneven distribution of wealth
The Effects of the Depression in the USA on Europe
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Recall & refusal to renew short term loans
The collapse of the German economy
The system of international debts and reparation payments
collapsed
There had been an outflow of gold towards the USA / the Great
depression magnified this unhealthy tendency
Shrinkage in world trade
Prices fell due to lack of demand / rapid rise in unemployment
Social problems led to a rise in political extremism
Led to the development of Economic Nationalism (promote
recovery in ones own country at the expense of others)
Reasons for Economic Nationalism:
o
o
o
o
o
Isolationist policies of the USA who imposed heavy import
duties which led to retaliation from European states
Keynes promoted Gov. intervention and this tended to result in
economic nationalism
USSR was the only one not to experience the effects of the
depression and this led to a belief in tight state control as the
way of the future.
Failure to keep international agreements
The rise of fascism which was highly nationalistic
Effects of Economic Nationalism:
o
o
o
o
o
Short term benefits to some countries, i.e G.B and German, but
it is doubtful that there could have been long term benefits, but
the outbreak of WW2 totally changed the economic scene
Caused a further contraction of the volume of world trade
(imposed imposition of tariff barriers)
Contributed to deterioration in international relations
Promoted Gov. intervention/management of the economy
In the long term, world leaders came to recognize the
importance of economic cooperation and institutions such as
the IMF and the World Bank were established.
Interwar European Economic Problems 19191939
The Economic Problems of Great Britain 1919-1939
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Britain was a trading nation and its prosperity was built on her
early industrialization however after WWI Britain became a
debtor nation, causes of this include:
Britain was challenged as other countries industrialized
New post-WWI trading patterns were not in favor of Britain
Britain had little left (after war debts) for import payments
The post-WWI rise in protectionism damaged Britain given the
nature of her economy (trade based)
The break up of A.H. deprived Britain of a valuable export
market
British industry was becoming outdated
Solutions to Britain’s economic problems:
Exporting more
Import less
Increase invisible exports
Difficulties w/ the solutions:
 To export more, Britain would have to produce cheaply
which meant either:
 Using more efficient methods of production (v.
expensive)
 Reducing pay/ increasing work load (socially
unacceptable)
 To import less Britain would have to impose tariffs on
foreign goods (this would be unpopular b/c Britain was a
major importer of food and therefore this would lead to
a decrease in living standards.)
 To increase invisible exports Britain would have to
restore confidence in her economic security. To do this
Britain:
 Announced in 1923 that it would honor all war
debts — and to do this taxes increased and
British goods became more expensive (therefore
visible exports declined)
 Announced in 1925 that it would return to the
Gold Standard — this pushed up the value of the
pound which resulted in expensive British goods
and in British noncompetitiveness. (the Gold
Standard was abandoned in 1931)
During the inter-war period, high U. led to social unrest and led
to five changes in British Gov. (btw 1919-1931)
The National Government 1931-1940
o
o
o
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Took Britain off the Gold Standard
Free Trade was abandoned
High tariffs were imposed on goods (those suspected of being
‘dumped’ on Britain)
An import duty of 10% was imposed
o
o
o
o
o
o
o
A system of ‘imperial preferences’ was set up w/ free trade btw
Britain and her empire
Reduced interest rates (easier to borrow)
Limits were imposed on the export of capital
Wages were driven down by the depression and heavy U.
Imports of raw materials were cheaper b/c of the depression
Improvements in manufacturing lowered prices
Lower prices led to increased consumption despite lower wages
The national Gov. brought about the small beginnings of a slow recovery.
The Economic Problems of France 1919-1939
But, France had been the major battlefield for WWI and suffered greatly as a result.
Her problems were:
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Loss of revenue in areas which had been devastated by the war
Bankruptcy of the French treasury (due to massive borrowing)
Manpower shortage because of heavy war losses
The newly developed industrial sector promoted trade while the
agricultural sector promoted projectionist policies.
The taxation system was outdated and inefficient
The French Gov. relied too much on reparations
France needed an economically strong Germany but its politicians sought to
cripple Germany.
In relation to Germany and Britain, France performed well in the 1920s.
o
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France relied less on trade and more on agriculture and
suffered less from the shrinkage in World Trade.
France had a strong agricultural base
France obtained resource-rich areas from Germany
The franc was undervalued and this helped French exports
The French Gov. was divided and weak, and could not take
decisive action (such action in Britain deteriorated the situation
rather then improved it)
Problems in the 1930s:
Serious unrest and difficulties in agriculture and industry, in response the Socialists
(unpopularly:)
o
o
o
o
Reduced salaries in the civil service
Reduced pensions to ex-servicemen
Closed down public work schemes
Increased taxes on Consumer Goods
(1934-1936 a right wing Gov. came to power, later extremist right wingers attempted a
coup which failed and led to the rise to power of the Popular Front)
The Policies of the Popular Front
o
o
o
Its victory was followed by a series of strikes by industrial
workers
This brought the economy to a standstill and
Led the right wing to fear revolution
The Matignon Agreement: (1936) (agreement between left and right wing Gov. factions)
o
o
o
o
Its measures were: 12% rise in wages / nationalization of
armament works / greater Gov. control over the Bank of France
/ paid vacation for all workers / a 40 hour week / recognition of
trade union rights / the end of occupation of factories and the
owners retained control
The problem of the agreement was the question of paying for
the agreed reforms.
At first the Gov. relied on borrowing
Later the franc was devalued but this did not stimulate recovery
b/c of the reduction of production (due to a 40 hour week)
Why was the Gov. unable to deal w/ the problems?
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Huge debts had been incurred and the leadership demoralized
There was a large/powerful agricultural lobby
Industry was backward
Those who controlled financial institutions (rich industrialists)
were conservative
Civil Service control lay in the hands of right wingers who were
opposed to reform
French politics were polarized and cooperation btw left and
right was small.
The Economy of the USSR during the period 1919-1939
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The introduction in 1928 of a new system of central planning
brought about rapid development
The USSR began to catch up with the advanced countries of the
West.
Why did the USSR avoid the Great Depression?
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She developed her economy in isolation of the world trading
system and:
Stalin aimed at achieving autarky and to this end lessened the
importance of imports upon the USSR
The USSR was isolated diplomatically. (the USA established
diplomatic relations w/ the USSR in 1933)
The Gov. had great control over the economy (ie: prices and
wages were fixed)
Soviet industry was not consumer oriented
There was no possibility of speculation by bank
No independent labor unions, and therefore no disruptive
strikes
There was not the vast inequalities in wealth distribution that
existed in the West
And there was:
No political opposition
No interest groups to oppose economic measures
The Gov. was not subject to public opinion
But:
o
The methods were not transferable to the West (the USSR was
a totalitarian state)
o
o
Behind economic successes lay "slave labor camps, mass
executions and wholesale starvation" (in parts of the USSR)
The Soviet system proved in the long term to be inflexible and
unable to progress beyond a certain stage.
The Economic Problems of Germany 1919-1939
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Political instability / Germans did not accept the constitution of
the Weimar Republic
Germany lost her colonies and territories (therefore resources,
population and industry) when she most needed them
Germany had to pay reparations
Anti-German feelings were high and this damaged German
exports
Germany had to hand over "huge quantities of industrial
machinery, merchant shipping, railway engines, and wagons"
which were needed by Germany
Parts of Germany were occupied
1919-1923: All progress was destroyed by the occupation of the Ruhr. As the economy
collapsed, the currency became worthless and social unrest rose.
1924-1929: Germany began to recover economically (w/ the Dawes and Young plans)
1929-1933: Germany’s economy was destroyed by the Great Depression / this led to the
rise to power of Hitler and the Nazis
The Economic Policy of the Nazis:
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Hitler seemed to have brought by the late 1930s an economic
miracle, his methods were:
A high degree of central planning
The use of production targets for key areas
The use of strict controls on the distribution of raw materials
A drive towards autarky / cutting down of imports
Labor Unions were abolished as early as 1934
Measures to reduce U. included:
Increases in public works
Rapid expansion of the armed forces
Banning certain social groups from certain jobs
The growth of the Nazi party
Characteristics and Appeal of Fascism
Characteristics: (during inter-war period)
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o
Strongly nationalistic
Strongly/Violently anti-Communist
Anti-Liberal-democratic
Opposed to international org.
Elitist and Authoritarian (‘Obedience not discussion’ —
Mussolini)
Close identity btw the party and the state
Strongly anti-Semitic
Glorified war (promoted Social Darwinism)
o
o
o
o
o
o
Profoundly racist
Had a paramilitary wing (ie: Blackshirts / S.A.)
Promoted the myth of the race (use victories of the past)
Placed emphasis on the myth of the predestined leader
Made great use of symbolism (ie: swastika)
Did not have a clear doctrinal base
Reasons for the Appeal of Fascism
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Fascism was not clearly developed in theory and could appeal
to all groups irrespective of status
The emphasis upon law and order was appealing (it was seen
as an alternative to social unrest)
People were turning to other forms of Gov. due to immense
economic problems.
Weak governments were easy preys for the fascists
The fear of communism led to support for the fascists who were
violently anti-Communist
Fascism gave its members a sense of identity
Fascism made great use of the potentials of the newly
developed mass media
Traditional parties lacked inspiration and the fascists:
Represented a dynamic alternative
Were not opposed by the Gov. which they sought to bring down
Fascism in Germany
Reasons for the Rise of Fascism in Germany
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The economic collapse of Germany after 1929 (main reason)
The lack of democratic roots in Germany
Under the Weimar republic
It was impossible to secure a majority in parliament (this
depicted democracy as a weak Gov. system)
The president had the authority to declare a state of emergency
(Hitler used Hindenburg’s ability to do this in order to establish
his dictatorship)
The fear of communism (Hindenburg appointed Hitler as
chancellor as a result of such fears)
The Nazis exploited the weakness of the Weimar system and
often used violence against their opponents
The Nazis made use of propaganda to shape public opinion
The Nazis used resentment against the Versailles Settlement to
their ends.
Some other political parties did not support democracy and
represented potential allies for Hitler
Characteristics of National Socialist Rule
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Germany became a one party state
Hitler was supreme within the party and he was taken as the
personification of National Socialism.
Totalitarianism was introduced
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Education was controlled
Strict censorship of the media
All non-Nazi youth movements were banned and replaced (ie:
by movements such as Hitler Youth)
The churches were brought under Nazi control
Trade Unions & strikes were banned
The use of terror was made to crush all resistance
The army was brought under Nazi control
 Officers swore loyalty to Hitler
 Gradually Nazi officers filled army ranks
 The non-Nazi commander and war minister were
removed in scandals at least engineered by the Nazis
 The S.S. was built up
The Nazis made great use of propaganda
The economy (see previous notes)
Racism / The Aryan Germans were declared to be the ‘Master
Race’
Expansionism / Hitler claimed to reunite all Germans and Nazi
interests centered on obtaining land in Europe
There was a close identity between party and state
Centralization of power.
An Evaluation of National Socialism
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Failed in the long run and brought disaster to Germany
Brought short term benefits (see notes on Economic Problems)
Drove to exile Germans who could have contributed greatly for
Germany (ie: Einstein)
There was strict censorship of art, literature and academic life;
which all did not flourish under the Nazis
Women’s rights suffered
Loss of civil liberty
Nazi extremism brought about Allied extremism and eventually
events such as civilian bombings (ie: Dresden)
Some successes: construction of autobahns, establishment of
enterprises like Volkswagen, and scientific advances in areas
such as synthetics, and rocketry.
An Evaluation of Nazi Economic Policy
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Difficult to measure because of Nazi manipulation of statistics
Increases in output were directed to the armed forces (this
meant recession was inevitable except in the case of war)
Economic improvements were accompanied by loss of individual
freedoms
Rise of the Nazis in Germany
The ideological roots of Nazism
Its roots lay in two movements of the last 25 years of the 19th century:
o
o
Anti-Semitism which grew during that period of depression and
from the racial theories of the time
Radical right-wing politics (i.e.: Pan-German League) in favor of
authoritarianism.
From its founding to the putsch of 1923:
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Founded during the chaotic period immediately after WWI.
Bavaria was then under the control of a right wing Gov. which
sheltered extremists (including the Nazis)
Formed Jan. 9th 1919 under the name German Workers Party
(DAP), Hitler joined as propaganda chief in Sept.
Aug. 1921: Hitler became leader and introduced: the notion of
the leader / a more centralized system w/ all branches subject
to the authority of the original branch in Munich.
June 1922: the now renamed National Socialist German
Workers Party (NSDAP) is banned in all states except Bavaria.
The Munich or ‘Beer Hall’ Putsch:
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End 1922: Germany defaulted on reparation payments
Jan. 1923: Invasion of the Ruhr
Aug. 1923: Streseman became chancellor (& called for passive
resistance and began negotiating w/ the French)  Hitler saw
this chancellorship as the beg. of a communist takeover…he
decided to lead a putsch.
Hitler decided to convince leading members of the Bavarian
Gov. to help him on his ‘March on Berlin’ he seized them, they
gave their consent but once released w/drew their aid. On Nov.
9th 1923 the Nazis marched on Gov. buildings and were
dispersed by gunfire and had their leaders arrested.
Hitler went for 5 years in prison, but now he was a nationally
known figure.
The Creation of a Nationwide Party Organization (19231928)
Background to this period:
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period of recovery / the Weimar Republic seemed to have
survived attempts against it and have gained support
1924: the Ruhr was reintegrated into the German economy /
the Dawes Plan (rescheduled payments and made loans)
1925: Locarno Treaties — Germany accepted the frontiers of
1919
1926: Germany joined the League of Nations
1928: Kellog-Briand Pact
These favored improved international relationships and recovery. The appeal
of extremists (i.e.: declined during this period).
Nazi Party Measures:
o
Re-founding of the Party, Feb. 1925: Hitler re-founded the
party (which had been banned) to participate in the political
o
o
processes of the Weimar Republic. Hitler planned to use the
democratic process to gain power, and then destroy it.
Consolidation of the ‘Fuhrerprinzip’: Dispute (over participation
in elections / the Party Programme) was ended when Hitler
imposed his views, and by 1926 his control of the party had
been greatly strengthened.
Creation of a Party cadre: the country was divided into Party
regions w/ a leader for each region.
The Role of the S.A.: Hitler restricted its activities to propaganda and
bodyguard duties since he did not wish to antagonize middle class & wealthy
supporters.
Nazism Becomes a Mass Movement 1928-33
The insecure foundations of economic prosperity:
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o
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US short term loans were invested on long term projects
Middle classes being ‘squeezed’ by gains made by: the leading
industrialists who were forming into large thrusts / the workers,
whose unions had pressured for higher wages, etc…
World wide agricultural depression by late 1927
The effects of the May 1928 election:
Gain for left wing parties, decline of the right. The right and center parties concluded that
coalition Gov. had weakened them. There was danger that the parliamentary system would
break down b/c coalition Gov. would not be possible.
The Economic Depression 1929 onwards:
o
o
o
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Had to face withdrawal of US short term loans
The Young Commission and the Great Depression served as foci
for right wing attacks against the Versailles settlement.
March 1930: collapse of Gov. coalition / appointment of Bruning
(Catholic Center Party) He tries to force unpopular budget
measures.
Sep. 1930: Election in which Nazis become the second largest
party in the Reichstag.
Propaganda:
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o
o
o
Modern techniques (press campaigns, whirlwind campaigns by
air, film shows, etc.)
Forming special propaganda sections for individual interest
groups.
Emphasis on appeal to youth.
Nationalism as a uniting force.
The Struggle for Power 1930-33
Obstacles:
o
Reluctance of conservative right wing parties to ally w/ the
Nazis. They wanted: Nazi officials only in minor cabinet posts /
o
o
Nazis to drop many of their demands and restraining their
followers.(becoming more ‘civilized’)
Attitude of Pres. Hindenburg
Divisions w/in the party. Hitler did not want to alienate the
army & the wealthy industrialists. However, opposition w/in the
party felt this would betray the revolutionary nature of the
party (such feelings were strongest in the S.A.)
The Major developments of this period:
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See notes
Jan. 1933: Hindenburg appointed Hitler Chancellor b/c:
Only way to have mass support for a right wing Gov.
Instability during 1930-33 might turn to the advantage of the
left
He was persuaded the Nazis would become more moderate
He was persuaded Hitler could be controlled (clear majority of
non-Nazis in cabinet)
Hitler accepted b/c:
Loss of seat in Nov. 1932 election foreshadowed a decline of
the Nazis
He believed that once in power he could strengthen his position
He hoped he could organize the next new elections so the Nazis
would obtain an overall majority
He had demanded the Enabling Act to give him special powers
to deal w/ the crisis and thought this act would pass.
The Seizure of Power 1933-34
Situation in 1933:
o
o
Only three cabinet posts held by Nazis / no Nazi Reichstag
majority / Hitler could be dismissed by Hindenburg
Hitler represented only hope of the Right for mass support / the
Right could not simply govern through pressure groups (army,
business, etc.) / Hindenburg becoming increasingly senile.
The Election of March 1933:
Nazis received generous donations from industrialists (who
feared a left wing revival)
o Goring (then Prussian Minister of the Interior) allowed Nazi
violence in the campaign to go on uncontrolled.
o Opponents of the Nazis had a passive attitude.
The Reichstag Fire: Feb. 27th 1933 The man considered responsible was a
communist  The Nazis claimed it was a beg. of a communist takeover /
Hindenburg passed the ‘Decree of the Reich President for the Protection of
People and State’  Hitler could: ignore restrictions on police power / take
over the power of the German states  using this, the Nazis arrested
communists and other political opponents.
 Results: Communists were banned, and Nazis in coalition w/ the
Nationalists obtained a majority.
o
o
The Enabling Law
To obtain 2/3 majority needed to change the constitution the Nazis carried a campaign of
intimidation: they depicted opposition as unpatriotic / Nazis in the S.A. seized control of
state Gov. / opponents in the SPD and trade unions were arrested / the building where the
Reichstag was surrounded by S.A. and SS troops. This law granted Hitler the right to:
o
o
make laws w/out Reichstag approval
make treaties w/ foreign states w/out Reichstag approval
Hitler now no longer needed the support of political parties.
Creation of a one-party state:
o
o
June 1933: SPD banned
July 1933: Law makes all political formations (except Nazis)
illegal
Conflict between Hitler and the S.A.:
o
o
o
The S.A. demanded that Hitler follow socialist measures as laid
down in the 1920 Nazi Programme
The S.A. wanted a greater say in party affairs
They wished to replace the army w/ a national militia
Hitler feared that they would lose him the support of the non-Nazi right, and the army. The
army was then the only group w/ the power to remove him.
The Night of the Long Knives:
Night of June 30th/July 1st: arrest of the main S.A. leaders by the S.S. / leaders are shot /
Hitler congratulated by Reichstag, Hindenburg, & the army.
Death of Hindenburg:
Aug. 2nd 1934: Hindenburg dies / Hitler replaces him w/out election  now referred to as
the Fuhrer / new oath of loyalty for soldiers and civil servants (to Hitler)
A Drive to a Totalitarian State, Main Measures of
the Nazis: 1934-36
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o
o
o
o
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Professions are ‘synchronized’ w/ Nazi beliefs. (i.e.: teachers /
judges)
Purges of Gov. workers of communist sympathizers, Jews and
replacement by party members.
Nazis tried to restrict the influence of the Church and the
application of the 1933 concordat (allowing the Catholic Church
to have its own school & property but to keep out of politics)
Nazis took more direct control over the Protestant
churches…soon swastikas were displayed alongside the
Christian Cross.
Membership of one Nazi youth group was obligatory for all
Germans until age 18.
Toward workers: labor unions abolished, establishment of
‘Strength Through Joy’ movement which provided subsidized
holidays, sporting activities, etc.
Creation of Ministry for Popular Enlightenment and Propaganda
— bringing under control the mass media and using them
towards Nazi propaganda.
Rapid expansion of the S.S. (w/ Himmler) In 1934 the S.S.
became an independent org. answerable to Hitler and Himmler
only. Gestapo was placed under its control. Reg. Criminal police
merged w/ the S.S. in 1936.