The Aftermath of WWI Chapter 17 Section 1-2

Causes of the Great Depression Depression – a period of low economical activity and rising unemployment 2 Causes Downward spiral of economies in individual nations in the late 1920’s International financial crisis involving the US stock market

Cause # 1 Farms were overproducing Too much supply makes demand go down That makes prices fall drastically For example – prices of farm production were falling rapidly due to overproduction The farmers couldn’t sell enough to make enough money to pay their bills When they did sell their product it wasn’t worth as much as it used to be

Cause # 2 US investors had been putting money into Germany so Germany could pay their debts to France and Great Britain By 1928, investors had pulled their money out of Germany to put into stocks in the US stock market Damages the German economy October 29, 1929 - Black Tuesday - US stock market crashed and prices of stocks plunged Many people lost all their money, savings, etc

Responses to Depression In the US… 1932 – Franklin Delano Roosevelt b/c president He b/g active govt. intervention in the economy The New Deal – govt. funded projects that created jobs for people Examples of Roosevelt’s New Deal WPA – built bridges, roads, post offices, airports, etc Social Security Act – created a system for old-age pensions and unemployment insurance The New Deal helped employment and the US economy, but it did not bring us out of the Great Depression WWII production brought US workers back to full employment

Effects of Depression The Great Depression led many people to b/g to question their govt. and capitalism Many b/g to have a renewed interest in Marxist doctrine Marx said that capitalism would destroy itself through overproduction and it seemed to be coming true Socialism and Communism b/c more popular The Great Depression also led the masses to follow political leaders who offered a simple solution for dictatorial power Dangerous people like Hitler and Mussolini

The Totalitarian State By 1939 only two major European states remained democratic (France and Great Britain) Totalitarian state – govt. that aims to control the political, economical, social, and cultural lives of its citizens Totalitarians conquered the minds and hearts of their subjects through mass propaganda and high-speed modern communication The totalitarian governments states were led by a single leader and a single political party

Fascism in Italy Fascism – glorifies the state above the individual by emphasizing the need for a strong central government led by a dictatorial ruler Any opposition to the govt. is suppressed After WWI Italy experienced severe economical problems Inflation grew Industrial and agricultural workers staged strikes

Mussolini’s Italy Fascism grew b/c of middle-class fear of socialism, communism, and disorder Benito Mussolini – fascist Prime Minister of Italy Mussolini came to power by knowing people’s fears and preying on them He knew nationalism was a powerful force and used it to gain power

Lenin’s Soviet Union Lenin – Communist leader of Russia during and after the Russian Civil War 1922 – Lenin and the Communist party created a new state The Union of Soviet Socialist Republics (USSR) Also called the Soviet Union Lenin died 1924

Stalin’s Soviet Union Stalin – Communist leader of the USSR b/f, during, and after WWII Like Hitler, Stalin was one of the greatest mass murderers of history It is estimated that he is responsible for executing as many 25 million people He “got rid” of anyone who opposed him and his political beliefs