Interwar Years/Worldwide Depression- All Notes

Costs of the War

-left nations close to bankruptcy

-Europe was rebuilding using loans from the US

Europe in World Affairs

Europe was beginning to lose its unrivaled dominance in world affairs

New Governments

democracies were unstable in many nations

Why were democracies unstable?

-some countries were not used to/never had democratic govts.

-many countries had 10 or more political parties

Coalition Government

a cabinet or government formed by two or more political parties working together, usually when no single party wins a majority in an election

What was the problem with Coalition govts?

people lost faith in a democratic govt system

Weimar Republic

-setup in Germany in 1919

-Germany lacked democratic traditions

Why was Germany in so much debt?

-they had to pay reparations from the war

-they didn’t raise taxes, so the govt didn’t have much money

How did Germany deal with their debts?

-they printed more money

-this caused inflation

-citizens began to question the stability of a democratic govt

1922- Germans stopped paying reparations

France took over the Ruhr Valley as reparation payment instead

Dawes Plan (1924)

-US arranged for a $200 million loan to stabilize the German economy 

-this allowed Germany to pay Britain and France reparations who could make payments on loans to US

Treaty of Locarno

Treaty signed by France & Germany recognizing Germany’s borders w/ Belgium & France

Kellogg-Briand Pact (1927)

-agreement signed by 62 nations which outlawed war as an instrument of national policy, but allowed countries to go to war in self-defense

-it was a failure → there were no provisions for enforcement

Why did the US economy collapse?

-uneven distribution of wealth in the US

-average person in the US was buying on credit → couldn’t afford to buy products they were producing → factories stopped producing goods → people lost jobs in factories

-Overproduction on farms→ drove down prices → farmers couldn’t pay debt → lost their farms

Margin buying

-small down payment was required and stock brokers loaned the rest→This lured a lot of middle class people into the stock market

-it’s fine if the market goes up; if the market goes down, broker still owed money

Stock Market Crash (1929)

-After a long period of rising markets, some investors began selling stocks thinking they were overinflated

-This started a massive sell-off

-Not enough buyers → price of stock plummeted → collapsed Monday, Oct. 29th

Effects of the Collapse of the US economy (on other nations)

-by 1929 almost half of all products made were made in US factories

-brought down world economy

-Triggered a global depression

-“Trade wars” ensued

Effects of the Collapse of the US economy (on america)

-25% of Americans out of work

-factory production cut in ½

-banks failed

→ people lost confidence in the US banking system

→Europe’s inability to pay loans on WWI debt → contributed to bank failures

Fascism

-a new political movement that emphasizes loyalty to the state and obedience to its leader

-Promotes an extreme form of Nationalism and Militarism

Why didn’t Italy like the democratic govt?

-Democratic govt perceived as being taken advantage of at the Paris Peace Conference (Treaty of Versailles),

-lack of territorial gains

-govt. seemed helpless to deal with economic problems

Benito Mussolini

-founded "Fascist party" in 1919

-make bold promises (revive economy, rebuild military, restore Italy to a great power)

-very critical of Italy's government

The Black Shirts

-paramilitary organization loyal to Mussolini

-they intimidated other parties and voters

March on Rome (1922)

-30,000 Fascists & Blackshirts marched on Rome to support Mussolini

-Victor Emmanuel III turned power over to Mussolini

What did Mussolini do after taking power?

-abolished Democracy

-allowed no political parties except Fascists

-censored radio & newspaper

-outlawed workers strikes

-tried to Ally Fascists w/ wealthy industrialists and large landowners

Countries with Dictatorships

-Hungary

-Poland

-Yugoslavia

-Bulgaria

-Albania

-Romania

-Japan

-In Eastern Europe, only Czechoslovakia will remain democratic

The Depression Hits Japan

-Hit hard by the Depression in 1929, this allowed the weaknesses of Japan's parliamentary system to be exploited

-Military was outside of civilian control → they reported directly to the Emperor

-As the Depression grew worse, democratic leaders were blamed

-Militarists gained popular support and took over and ruled through emperor Hirohito → one militarist rose to the top, Hideki Tojo

Pro’s of Japanese Expansion

-Militarists believed the way out of depression was through military expansion

-Provide Japan with much needed Natural Resources (coal, oil, iron ore)

-expansion would provide room for expanding population

-military expansion would fuel economy (employment) through the building of war materials & enlistment

Where did Japan expand to?

• 1931→Japan takes Manchuria

• 1934–35→ Japan begins rapid naval buildup

• 1937→ Japan takes Beijing and a number of northern cities- Japan also invades southern China

Appeasement

giving in to a smaller demand by an aggressor in order to avoid larger conflict

Axis Powers

-In 1936 Italy & Germany formed military alliance

-Japan joined in 1940

Where did Germany Expand to?

-1936 → Germany occupied the Rhineland (was demilitarized, this was also a violation of the Treaty of Versailles)

-1936 – Germany (& Italy) assist Franco in the Spanish Civil War (France & Britain do nothing) this emboldens Hitler

-1938 – Germany annexes Austria

*Britain & France did nothing to stop Germany from expanding or rearming → they feared a larger conflict

Munich Conference (Sept 1938)

-British Prime Minister Neville Chamberlain and French Premier Edouard Daladier, along with Mussolini and Hitler, gave Germany the Sudetenland (part of Czechoslovakia)

-this was referred to as appeasement

Italian Expansion

-1935 → Italy invades & conquers under-equipped Ethiopia

-They struggled, but succeeded

What effect does all the expansion have on other European nations?

More European nations began speeding up their rearmament (especially Britain)

US neutrality laws (1935-1939)

-US tried to maintain neutrality → passed a series of neutrality laws

1. prohibited shipment of arms to warring nations

2. required warring nations to transport their own goods purchased in the US

3. forbade US citizens to travel on ships of warring nations

More expansion- leads to war

-Hitler was not satisfied with his gains, he continues to expand

-March 1939- Germany takes all/remainder of Czechoslovakia

-No response from Britain and France (they did make threats about Poland though)

-August 23, 1939- USSR and Germany sign a nonaggression pact→secret clause divides Poland between them

-Sept 1 1939→Germany invades Poland

-Sept 3- Britain and France declare war

-USSR invades Poland from the east 

-USSR invades Finland and the Baltic States

Hitler & The Nazi Party

-Hitler and other war veterans started the Nazi Party in 1920 

-Influenced by Mussolini

-Created Brown Shirts

-Hitler was an excellent speaker

-1923 → he was jailed for failed coup attempt in Munich

-while in jail he wrote Mein Kampf (My Struggle)

Brown Shirts

a paramilitary group created by Hitler used to intimidate rivals

Mein Kampf

-set forth Hitler’s beliefs and his goals for Germany

-became the ideology of the Nazi party

-made Hitler realize he would have to use the existing political system to take power

-Aryans master race

-Non-Aryans were inferior, particularly Jews, Gypsies, and Slavs 

-Hitler wanted to overturn the Treaty of Versailles & restore Germany to greatness

-He would create a Greater Germany → unite all Germans (German-speaking people in territories lost) under one nation

-Lebensraum=living space → according to Hitler, Germany needed more space in Europe → He would acquire the space at the expense of the Eastern Europeans and Russia

Hitler revives the Nazi party after released from jail

-Started off very small support at first, but by 1932 (with "help" from the Depression) Nazi’s become largest political party

-Nazi’s have significant election success in 1932, but it's unable to gain a clear majority

-President Hindenburg, w/ pressure from other conservatives who believe they can control Hitler, appoints Hitler chancellor

Hitler called for another round of elections

-After fire at the Reichstag building (Nazi’s blamed Communists) and intimidation of other parties by the Brown Shirts, the Nazi’s win a slim majority in the Reichstag

-March 23, 1933- ⅔ of Reichstag votes to pass Enabling Act

Enabling Act (1933)

-gives Hitler Dictatorial power

-legal basis for destruction of democracy

Political Control

-Hitler dismantles the Weimar Republic and creates a totalitarian state

-He bans political parties (except Nazis)

-Created SS & Gestapo

-Night of the Long Knives

-Reichstag became symbol only (Germans could only vote for Nazi-approved candidates)

SS

priv. army loyal to Hitler & not Germany

Gestapo (Secret Police)

searches for those disloyal to Hitler/Nazis and strikes terror into hearts of Germans

Night of the Long Knives (June 30, 1932)

the Gestapo rounded up and killed hundreds of political enemies (many were potential political rivals to Hitler within the Nazi Party)

Took Control of Economy

-Banned strikes & labor unions

-Govt. had authority over businesses & labor

-cut unemployment from 6 million to 1.5 million by 1936

-govt. money spent to build highways & rebuild military (enlistment + war materials) and factories

Took Control of Society

-took over all media outlets (radio, publishers, tv, movies, newspapers)→used them to promote positive image of himself, his policies, and the Nazis (propaganda)

-he controlled the education system→merged all youth groups together to form Hitler Youth (boys) and League of German Girls

-Gestapo monitored society and was always "watching"→this scared Germans into obedience

War on Jews

-Hitler never hid his racist attitude towards Jews

-Blames problems of German society on the Jews (poor economy, Treaty of Versailles)

-Nuremberg Laws

-Kristallnacht

Nuremberg Laws (1933)

9-15 laws passed by the Nazis, depriving Jews of rights

Kristallnacht (Nov. 9, 1938)

-"night of broken glass"

-a nationwide rampage (night of violence) against Jews (businesses, synagogues, etc. were destroyed)

-foreshadowed/precursor to the "Final Solution" (Holocaust)