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* When World War I ended the Treaty of Versailles was signed. The treaty was supposed to ensure peace and prevent another global war.
* The conditions of the treaty imposed harsh conditions on Germany in the form of reparations. Reparations include payments for war damages.
* The treaty required Germany to give up its colonies. The colonies were divided among other European countries and Japan without consulting the Indigenous peoples who lived in the colonies.
* American, Canadian and other delegates warned the reparations were too severe.
* John Maynard Keyes, a member of the British delegation said that Germany and Austria would starve with the war debts and guarantee another major war.
* Because of the poor living conditions workers started rebelling for better wages and working conditions.
* When peasants and deserting soldiers joined the rebellion, the economy shut down.
* Nicholas II was forced from his throne in 1917 and his family was murdered in 1918.
* Russia was torn by civil war until 1922. Transportation systems broke down, food could not be shipped, people starved.
* Between 1920 and 1922 a drought and famine killed at least 5 million people.
* In 1914, Russia was ruled by Czar Nicholas II. The empire covered one sixth of the earth’s surface and included 150 million people of more than 100 nationalities.
* Russian peasants had little control over their labour and property and lived very difficult lives.
* Industrialization in Russia lagged behind the western world. During WWI Russian soldiers had poor weapon and leadership.
* Russia was defeated in battle and nearly 4 million Russian soldiers died.
* By 1918 WWI was costing the Canadian government more than $2.5 million a day.
* Income taxes had been temporarily introduced to help pay the costs.
* After the war the interest payments on the country’s war debt totaled$164 million a year and soldiers’ pensions added another $76 million a year.
* As a result, income tax had become a permanent feature of Canadian life.
* After the war, weapon manufacturing stopped and unemployment rose.
* In 1922, the Union of Soviet Republics emerged out of Russia. It was the first communist state.
* Communism – is a new economic and political model that is supposed to get rid of class distinctions.
* In the USSR, everyone would work for the benefit of all and would receive help if needed.
* The Soviet Union became a one-party state.
* Communist Party controlled the government and the economy.
* By 1929, people were under control of an absolute ruler.
* Dictator Joseph Stalin made the Soviet Union into a military giant.
* Stalin made up schedules for workers, peasants were forced to work, and farmers were forced to grow grain on farms.
* By 1939, 95 percent of farms were collectives. The government exported products to raise more money.
* In 1932 there was a big famine, but grain was still exported.