World Crisis 1

Overview of the Wall Street Crash and its Impact

• Focuses on the factors that converged in the 1930s, leading to a world crisis.

• Addresses the complex issues surrounding the Wall Street crash and its aftermath.

Key Concepts

Crisis of Capitalism and Democracy in the 1930s

• The Wall Street crash triggered a worldwide economic depression.

• This crisis was also a crisis for democracy, as political systems struggled to cope.

Economic Nationalism and Militarism

• Economic nationalism played a crucial role in the rise of militarism in aggressive states:

  • Fascist Italy

  • Nazi Germany

  • Imperial Japan

Role of Democratic Powers

• Democratic countries (Britain, France, United States) failed to defend the liberal order they established.

Historical Context: 1914-1945

• The period is framed by two world wars, shaping the 20th century:

  • World War 1 Statistics: 16.5 million deaths, 21 million wounded, cost $196 billion (1990 values).

  • World War 2 Statistics: 78 million deaths, $2 trillion cost, 8 million houses destroyed in Germany.

The Treaty of Versailles

• Post-World War 1, the Treaty of Versailles aimed to create a liberal democratic world.

• Woodrow Wilson's vision was framed as making the world safe for democracy but faced significant challenges.

• Article 231 of the treaty blamed Germany for the war, leading to long-lasting resentments.

Legacies of World War 1

Total War and Political Power

• Total war concentrated power in the hands of the state, fostering totalitarianism.

  • Political control demanded total obedience and identification with state aims.

Power Vacuums and Instability

• Collapse of empires (German, Austro-Hungarian, Russian, Ottoman) created instability:

  • New nation-states emerged often with unstable democratic governments.

  • Example: The transition from empires to a patchwork of small, unstable nations.

Failure of New Democracies

• Critics like Mark Mazower observed that democratic triumph was short-lived.

• Authoritarian regimes gained power as fear of communism rose post-revolution.

  • Example: Democracy failed in Hungary (1919), Italy (1922), and other countries through the 1930s.

Pessimism Toward Democracy

• Writers in the 1920s and 30s expressed concern over the state of democracy:

  • Morris Bon's "A Crisis of European Democracy" (1925).

  • H.G. Wells explored the downfall of democratic ideals.

• The idea that the experiment of democracy was a novelty positively tied to fear and instability.

Summary of Legacies Impacting the Interwar Years

• World War 1 dismantled ancient dynasties and destabilized Europe.

• Successor states began with democratic systems but quickly fell to authoritarian rule due to internal fears and external pressures.

• The collective instability laid groundwork for the crises that would lead to World War 2.