Responses to the Great Depression

Capitalism Thought of as a self-correcting system Keynes Economics Lack of government action made things worse Keynes Economics Urged governments to stimulate economies Provide public works programs Lower interest rates and encourage investment Change tax policies to redistribute income

Capitalism President Roosevelt proposed “The New Deal” Government provided jobs (CCC, WPA, CWA, etc.) Farm subsidies Banking reforms Worker’s right to organize in unions Minimum wage “The only thing we have to fear, is fear itself.”

Communism in the Soviet Union

Communism in the Soviet Union Lenin and Bolsheviks were communists Met with quite a bit of opposition Civil war 1918 – 1920 Red Terror campaign against anticommunists Secret police killed about 200,000 in 1918 including Nicholas II and family Estimated 10,000,000 died in the war

Communism in the Soviet Union War Communism was developed during the civil war Bolsheviks assumed control of banks, industry and most private property Very unpopular: by 1920 agricultural production was ½ prewar production

Communism in the Soviet Union Lenin faced several problems Workers on strike Depopulated cities Destroyed factories Soldiers discharged faster than workforce could absorb

Communism in the Soviet Union Lenin reversed war communism in 1921 and established the New Economic Policy (NEP) Temporarily restored some private enterprise and market economy Large industries, banks, transportation and communications still under government control Lenin dies in 1924 of a series of strokes

Communism in the Soviet Union Joseph Stalin

Communism in the Soviet Union Power struggle after Lenin’s death w/Trotsky Stalin had been Secretary-General of politburo Became Soviet dictator in 1928 Favored a socialism approach (Government owns everything but gives workers wages) Replaced the NEP with Five-Year Plan Set targets for production, emphasizing heavy industry at expense of consumer goods Instituted large collective farming

Socialism in the Soviet Union State took control of farm lands Idea was that this created more efficiency and greater production In some places, outraged peasants slaughtered their livestock and burned crops Production quotas failed, people starved

Socialism in the Soviet Union Stalin halted collectivization in 1931 proclaiming success By then ½ of farms in Soviet Union had been collectivized Estimates of over 3,000,000 peasants died

Socialism in the Soviet Union First five-year plan had unrealistically high production targets Bolshevik leaders within the Politburo were going to challenge Stalin in 1934 congress Stalin implemented The Great Purge Bolshevik leaders tried for treason (2/3 removed) More than ½ of army’s high-ranking leaders removed 8 million citizens to labor camps, 3 million dead from the “cleansing”

Socialism in the Soviet Union Soviet leadership proclaimed success of the First Five-Year plan after four years (increased production 25%) Successful in industrializing Soviet Union: steelworks, hydroelectric plants, railroads Consumer goods scarce, yet cheap Full employment Centrally planned economy appeared to be an attractive alternative to capitalism

The Fascist Alternative

Different Kinds of Totalitarianism Communism: a classless government based on socialism principles, in which a single authoritarian party controls the state-owned means of production. Fascism: any centralized, authoritarian government that is not communist, whose policies glorify the state over individuals, and is destructive to basic human rights.

The Fascist Alternative A reaction against democracy, socialism, and communism. Attractive to nationalists who shared devotion to a strong leader, primacy of the state, ethnocentrism, and militarism. Viewed national boundaries as artificial restraints, limiting their union with ethnic comrades.

The Fascist Alternative in Italy Benito Mussolini in Italy Post WWI Italian government weak Mussolini established the Italian Combat Veteran’s League Squads known as “Blackshirts” used violence against socialists and won 35 seats in parliament October 1922 March on Rome, King Emmanuel III offers him office of Prime Minister. Seized power as Il Duce “the leader” in 1926

The Fascist Alternative in Germany Hitler becomes chairman of the National Socialist German Workers’ Party (Nazis) Unsuccessfully attempts overthrow of government in 1923, writes Mein Kampf in jail Massively popular Capitalizes on public discontent with postwar era Released in 1924, gained power at ballot box Nazis became largest party in parliament in 1930

The Fascist Alternative in Germany Hitler becomes Chancellor in 1933 Makes Nazis the sole legal party Eliminates autonomy of state and local governments Purged the judiciary and civil service Took control of police forces Launched theory of racial superiority, racial purity Began program of eugenics Precursor to massacres of Jews, gypsies Kristallnacht: country-wide pogrom on Jews November 9-10, 1938