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Transcript of Chapter 24
New Economic Policy
surrealism The Interwar Years: 1919 - 1938 The European nations that had fought in the Great War emerged economically and socially crippled. Economic depression prevailed in Europe for much of the interwar period, and debtor nations found it impossible to pay their debts without borrowing even more money, often at higher rates ... thus worsening the economy to an even greater degree. World War I and its aftermath especially destroyed Germany economically: the reparations to Britain and France forced on Germany by the Treaty of Versailles were impossibly high. Objectives:
Explain why peace and prosperity were short-lived after WWI.
Describe how a global economic depression weakened the Western democracies after 1929. The peace settlement at the end of World War I had tried to fulfill nineteenth-century dreams of nationalism by creating new boundaries and new states. Instead, the settlement left nations and individuals unhappy. Also, border disputes in Eastern Europe poisoned relations for many years ... many Germans wanted the Treaty of Versailles to be revised. A Weak League of Nations President Wilson had realized that the peace settlement included unwise provisions that could serve as new causes for conflict ... therefore, not very effective at maintaining future peace. Public Opinion: Most Americans did not want to be involved in European affairs. "The United States is the world's best hope, but if you fetter her in the interests and quarrels of other nations, if you tangle her in the intrigues of Europe, you will destroy her powerful good, and endanger her very existence."
--Senator Henry Cabot Lodge One reason that the League of Nations was weak, or ineffective was the failure of the United States to join ... the United States Senate failed to ratify the treaty. Article X:
The League of Nations sought to use the collective military resources of its member nations to resist any aggression --> This meant that joining the League would make it necessary for the United States to engage in war, even when Congress would not be in favor of an armed conflict ... also extended to include economic sanctions. French Demands Desire for security led the French government to demand strict enforcement of the Treaty of Versailles.
Reparations --> determined that Germany owed 132 billion German Marks
France sent troops to occupy the Ruhr Valley --> Germany's industrial and mining center. Inflation in Germany German government adopted a policy of passive resistance to French occupation. German workers went on strike and the government mainly paid their salaries by printing more paper money. The German mark soon became worthless --> Economic hardship led to political upheaval ... France and Germany sought a way out of the disaster. Workers used wheelbarrows to carry home their weekly pay. In August 1924 --> Dawes Plan Treaty of Locarno The Dawes Plan led to a brief period of prosperity, but it only lasted from 1924 - 1929 --> a spirit of cooperation was fostered by the foreign ministers of Germany and France. In 1925, they signed the Treaty of Locarno --> guaranteed Germany's new western borders with France and Belgium. viewed as a new era of European Peace ...
"Peace at Last" --> London Times
"France and Germany Ban War Forever" --> New York Times Germany joined the League of Nations in 1926 --> 2 years later: the Kellogg-Briand Pact formed. written by the United State secretary of state Frank B. Kellogg ... 63 nations signed on --> pledged to "renounce war as an instrument of nation policy" promises not to go to war were worthless without a way to enforce them. The Great Depression a period of low economic activity and rising unemployment Two Factors:
1. Downturns in the economies of individual nations
2. International financial crisis involving the U.S. stock market Germany France Great Britain United States Background Causes / Responses The imbalance between the rich and the poor, combined with production of more and more goods and rising personal debt, could not be sustained. On Black Tuesday, October 29, 1929, the stock market crashed, triggering the Great Depression. new concept of "credit" --> people were purchasing:
Clothes Fun times reigned:
Drinking Buying on credit was a huge problem in the 1920s ... since the 20s was a period of great economic boom, not many people took the future into consideration. This system was called installment buying --> with this system, people could make a monthly, weekly, or yearly payment on an item that they wanted or needed. The two systems, installment buying and buying on credit, left millions of people in debt ... when many lost their jobs, they could not pay back the debts they had incurred. Margin In the 1920s more people invested in the stock market than ever before. Stock prices rose so fast that at the end of the decade, some people became rich overnight by buying and selling stocks People could buy stocks on margin which was like installment buying --> meaning: people could buy stocks for only a 10% down payment! The buyer would hold the stock until the price rose and then sell it for a profit. As long as the stock prices kept going up, the system worked. However, during 1928 and 1929, the prices of many stocks went up faster than the value of the companies the stocks represented. Some experts warned that the bull market would end. In the summer of 1929, a few stock market investors began selling their stock. They predicted that the bull market might end soon, leaving them in debt --> this sudden selling caused stock prices to fall. Many investors in the stock market had bought large amounts of stock on margin ... nervous brokers asked investors to pay their debts, and when they couldn't repay they were forced to sell, causing stock prices to fall even more. During the next three years stock prices in the United States continued to fall ... Many banks were consequently forced into insolvency; by 1933, 11,000 of the United States' 25,000 banks had failed. Franklin Delano Roosevelt --> New Deal government intervention in the economy the New Deal included an increased program of public works, including the Works Progress Administration (WPA) -- social programs such as the welfare system and the Social Security Act. The New Deal provided reforms that may have prevented social unrest and revolution, but failed to solve the rising unemployment. In October 1929 the stock market crashed ... even after the stock market collapse, however, politicians and industry leaders continued to issue optimistic predictions for the nation's economy. as the Depression deepened, confidence evaporated and many lost their life savings --> by 1933 the value of stock on the New York Stock Exchange was less than a fifth of what it had been at its peak in 1929. Businesses closed their doors, factories shut down and banks failed. ... by 1932 approximately one out of every four Americans was unemployed. The core of the problem was the immense disparity between the country's production capacity and the ability of people to consume. The presidential campaign of 1932 was mainly a debate over the causes and possible remedies of the Great Depression. Herbert Hoover, unlucky in entering The White House only eight months before the stock market crash, had struggled tirelessly, but ineffectively, to set the wheels of industry in motion again. The election resulted in a smashing victory for Roosevelt, who won 22,800,000 votes to Hoover's 15,700,000 --> The United States was about to enter a new era of economic and political change. Based on the assumption that the power of the federal government was needed to get the country out of the depression, the first days of Roosevelt's administration saw the passage of:
banking reform laws,
emergency relief programs,
work relief programs, and
agricultural programs. Many of the New Deal acts or agencies came to be known by their acronyms. WPA: Works Progress Administration --> provided work in arts, theater, and literary projects.
PWA: Public Works Administration --> public works projects.
TVA: Tennessee Valley Authority --> built a series of dams to prevent flooding and sell electricity.
CCC: Civilian Conservation Corps --> sent 250,000 young men to work camps to perform reforestation and conservation tasks.
SEC: Security and Exchange Commission --> regulated stock market and restricted margin buying. the imperial rule of William II had ended with Germany's defeat in WWI. the German democratic state known as the Weimar Republic was created --> plagued with problems. Hindenburg was a traditional military man (WWI military hero) and did not fully endorse the republic that he had been elected to serve. The Weimar Republic also faced serious economic problems--> many watched their monthly incomes, and soon life savings, disappear. these losses increasingly pushed the middle class toward political parties that were hostile toward the Republic. after the defeat of Germany, France had become the strongest power on the European continent. its greatest need was to rebuild the areas that had been devastated in the war; yet, France had suffered financial problems as the result of war as well. the economic instability soon led political instability ... in June 1936, a coalition of leftist parties (Communists, Socialists and Radicals) formed the Popular Front government. the French New Deal gave workers the right to collective bargaining 40-hour work week
a two-week paid vacation
minimum wage during World War I, Britain had lost many of the markets for its industrial products to the United States and Japan. industries such as: coal, steel and textiles declined after the war leading to unemployment. by 1929, Britain faced the growing effects of the Great Depression --> the Labour Party had failed to solve the nation's economic problems and fell from power. a new government, led by conservatives, claimed credit for bringing Britain out of the worst stages of the depression.
protective tariffs despite being initially ignored by political leaders in Britain, John Maynard Keynes condemned the old notion that depressions should be left to resolve themselves. he argued that unemployment came not from overproduction, but from a decline in demand. Keynes argued that demand could be increased by putting people back to work building highways and public buildings--> the government should finance such projects even it had to engage in deficit spending. Key Terms:
New Economic Policy
collectivization By 1939, only two major European states -- France and Great Britain -- remained democratic. Italy, the Soviet Union and Germany adopted dictatorial regimes. one form of dictatorship was the totalitarian state -- this type of government aimed to control the political, economic, social, intellectual and cultural lives of its citizens. totalitarianism wanted more than simply passive obedience -- they wanted to conquer the minds and hearts of the subjects. this was achieved through propaganda and high-speed modern communication. the totalitarian states that emerged were led by a single leader and a single party. they rejected the idea of limited government power and individual freedoms instead, individual freedom was subordinated to the collective will of the masses ... yet, the collective will of the masses was organized and determined by the leader. Fascism in Italy in the early 1920s, Benito Mussolini established the first European Fascist movement in Italy. fascism glorifies the state above the individual b emphasizing the need for a strong central government led by a dictatorial ruler--> people are controlled by the government and any opposition is oppressed. Rise of Fascism Similar to other European countries, Italy experienced severe economic problems after WWI. inflation grew--> industrial and agricultural workers staged strikes ... Mussolini emerged from this background of widespread unrest. in 1920 and '21, Mussolini formed bands of black-shirted armed Fascists called the Blackshirts. the Black Shirts attacked socialists offices and newspapers and used violence to break up strikes--> middle-class industrialists who feared and objected to strikes began to support Mussolini. Mussolini's movement was growing: the middle-class fear of socialism and communism made the Fascists increasingly attractive to many people. plus, many were angry that Italy failed to receive more land in the peace settlement that followed the war. Mussolini demanded more land for Italy and won thousands of converts with his patriotic and nationalistic appeals. in 1926, the Fascists outlawed all other political parties in Italy and established secret police known as the OVRA (Organization for Vigilance and Repression of Anti-Fascism). The Fascist State since Mussolini believed that the Fascist state should be totalitarian, he used various means to establish complete control over the Italian people. the OVRA's purpose was to watch citizens' political activities and enforce government policies ... the Fascists also tried to exercise control over all forms of mass media, including: newspapers, radio and film. In order to further control the population, Fascists also organized youth camps that focused on military activities and values. with these organizations, the Fascists hoped to create a nation of new Italians who were fit, disciplined and war-loving. despite being totalitarian, the Fascists' maintained traditional social attitudes. this was especially evident in their policies and views toward women: the Fascists portrayed the family as the pillar of the state and women as the foundation of the family. Mussolini failed to achieve the degree to which Hitler and Stalin controlled their respected countries
the Fascist Party also failed to destroy Italy's old power structure
the armed forces were not absorbed into the Fascist state. Mussolini's Legacy Reichstag
concentration camp Beliefs and Views was born April 20, 1889. he was a failure in secondary school, and eventually traveled to Vienna, Austria to become an artist. he was rejected by the Vienna Academy of Fine Arts... but this is where he develops his basic ideas. Anti-Semitism "The Longest Hatred" The belief or behavior hostile toward Jews just because one is Jewish. It may take the form of religious teachings that proclaim the inferiority of Jews, or political efforts to isolate, oppress, or otherwise injure them. marriage between Jews and Christians was often forbidden. Construction of new synagogues was forbidden. Jews could not always hold public office. Jews faced expulsion:
1496: Portugal At the end of WWI, Hitler went to Germany and decided to enter politics. in 1919, he joined the little-known Germany Worker's Party ... one of a number of right-wing extreme nationalist parties in Munich. by the summer of 1921, Hitler had taken total control of the party, which he renamed the National Socialist German Workers' Party... by 1923, membership was 55,000 and 15,000 in the party militia. an overconfident Hitler staged an armed uprising against the government in Munich in November 1923 -- known as the Beer Hall Putsch. while, in jail Hitler wrote Mein Kampf (My Struggle) --> an account of his movement and its basic ideas. 1. "We demand the union of all Germans in a Great Germany on the basis of the principle of self-determination of all peoples." 4. "Only those who are our fellow countrymen can become citizens. Only those who have German blood, regardless of creed, can be our countrymen Hence no Jew can be a countryman." 5. "Those who are not citizens must live in Germany as foreigners and must be subject to the law of aliens." "...the personification of the devil as the symbol of all evil assumes the living shape of the Jew." "The Jew has always been a people with definite racial characteristics and never a religion." Rise of Nazism while he was in prison, Hitler realized that the Nazis would have to attain power through legal means ... this meant that the Nazi Party would have to be a mass political party that could compete for votes with other political parties. the NSDAP received 33% of the vote in the last election of 1932--> the Nazi Party consisted of 800,000 members and had become the largest political part in the Reichstag (German Parliament). Finding no one willing or able to form a coalition, President Paul von Hindenburg reluctantly appoints Hitler Chancellor of Germany. Victory of Nazism After 1930, the Reichstag had little power ... Hitler clearly saw that controlling the parliament was not very important. the final step in Hitler's "legal seizure" of power come on March 23, 1933, when a two-thirds vote of the Reichstag passed the Enabling Act. this law gave the government the power to ignore the constitution for four years while it issued laws to deal with the country's problems. with their new source of power, the Nazis acted quickly to bring all institutions under Nazi control ... large prison camps were set up for people who opposed the new regime. by the end of the summer of 1933 -- only seven months after being appointed chancellor -- Hitler had established the basis for a totalitarian state. when Hindenburg died in 1934, the office of president was abolished ... all public officials and soldiers now had to take a personal oath of loyalty to Hitler as their Fuhrer. The Nazi State Hitler wanted to develop the 'total state' ... the development of an Aryan racial state that would dominate Europe. Nazis believed that the Germans were the true descendants and leaders of the Aryans and would create another empire like the one rule by the ancient Romans. the Nazis pursued the creation of a totalitarian state in many ways ... economic policies, the use of terror and policies toward women and Jews reflected Nazi goals. the Schutzsaffeln (Guard Squadrons) or "SS" were an important force for maintaining order. the SS were originally designed as a bodyguard for Hitler, but over time and under the direction of Heinrich Himmler, the SS came to control not only the secret police but also the regular policing forces. Two Goals:
1. Terror (concentration camps, execution squads.)
2. Further the Aryan Race Hitler used public works projects and grants to private construction firms to put people back to work and end the depression. the Nazi regime took full credit for solving Germany's economic woes -- an important factor in leading many Germans to accept Hitler and the Nazis. mass demonstrations and spectacles were also used to make the German people followers of Hitler and Nazism. Kristallnact -- "Night of the Broken Glass" --> a destructive rampage against Jews, Nazis burned synagogues and destroyed thousands of Jewish businesses ... thirty-thousand males were rounded up and sent to concentration camps. Aryan identifies individuals that speak Indo-European languages ... the Nazis misused this term and identified the Aryans with the ancient Greeks and Romans. Mass Culture: Radio and Movies a series of inventions in the late nineteenth century had led the way for a revolution in mass communications ... Marconi's discovery of wireless radio waves was especially important. broadcasting facilities were soon built in the United States, Europe and Japan during 1920 and 1921. mass production of radios began ... in 1926 2.2 million radio were produced in Great Britain; by the end of the30's there were 9 million. radio and movies soon became uses for political rhetoric and motives. Hitler once said, "Without motor-cars, sound films ... there would be victory of Nazism." radio was the essential way in which the Nazis and Hitler reached the masses ... this became evident through Hiter's speeches had a great impact on people. film, too, had propaganda potential ... Joseph Goebbels was the propaganda minister of Nazi Germany. believed that film was the "most modern and scientific means of influencing the masses." Mass Leisure after WWI, new work patterns emerged and provided people with more free time to take advantage of leisure activities. professional sporting events -- which had large audiences -- were an important aspect of mass leisure. travel, too, became another enjoyed activity by the masses ... trains, buses and cars began making trips to beaches or holiday resorts. mass leisure also new was for totalitarian states, such as the Nazis, to control people. Kraft durch Freude ... "strength trough joy" program --> offered a variety of leisure of activities to fill free time: concerts, operas, films, guided tours and sporting events.