Day 9 – Instability and a Great Depression lead to the rise of Fascism Enduring Understandings International conflict often leads to domestic changes.   Twentieth Century economic depression was global in scope and helped to fuel worldwide tensions. 3. In times of crisis, people often turn to strong leaders in search of stability. 5. Conflicts of the 20th Century were rooted in political and ideological differences around the world. Day 9 – Instability and a Great Depression lead to the rise of Fascism Analyze charts and graphs on page 22, and 23. As you do, complete the Observation, Analysis, Impact charts below – to help to understand the effects of Great Depression on the modern world How can economic depressions be solved? Complete 1 and 2 on page 24 about the rise of Mussolini and the Fascisti Explain how today’s content supports each of the above EUs

An economic timeline Depression overview 1900 1923 1929 1933 1935 Globalization begins before WWI economically links most of the world Treaty of Versailles has huge impact on Germany and the rest of the world and Germany gets a new regime – the Weimar Republic After WWI Germany has economic problems The Great Depression – a great post WWI boom overheats and becomes a Great Depression and people are financially hurt Weimar Republic can’t handle the Depression Many governments tried different solutions to the problems of the Great Depression. A major alternative was Keynesianism, the solution the US used. Hitler is firmly in control of Germany

A Global Depression After WWI many new democracies faced great difficulty, so voters constantly voted against incumbents. Germany, Spain, Austria and others had little experience with democracy Many competing political parties won seats Coalition governments unstable Germany in particular – Weimar Republic was weak Lack of strong democratic tradition Many political parties Weimar blamed by German people for losing WWI Weimar blamed for Treaty of Versailles Economic troubles

A Global Depression Germany has severe economic crisis Rapid printing of money caused inflation Government had to pay war reparations Government had to pay its own debts for cost of war Dawes plan lent money to Germany to hold off inflation in 1924 – the German economy was recovering by 1929 The US economy was flawed Very uneven distribution of wealth Overproduction w/ declining demand Too much private and bank debt Over-speculation due to 90% margin credit Significant lending to Germany Important exports to Europe

US stock market crash on October 29, 1929 – Black Tuesday Fear and panic of loss of value Run on banks Margin calls Panic and forced selling Loss of confidence in continued prosperity A long depression followed crash Drop in employment Drop in production Drop in prices Drop in wages Banks closed Business foreclosures Farmer bankruptcies and foreclosures

A Global Depression US economic collapse affects the world Smoot-Hawley tariff slows down global trade US credit was called in from Germany and other countries (Dawes Plan fails) US investors pull money out of Europe America stops buying foreign products British government rescues the British economy High protective tariffs protect British industry Raised taxes Lowered interest rates to promote production Government spending on public works projects After 1936 more money spent on rearmament

Depression data graphs

Data graph analysis Observations – what do these charts show? Analysis – Why do these data look this way? Impact – So what? Why does this matter?   In Germany, the depression peaked in 1933 relative to unemployment. Bankruptcies peaked in 1931 but were still high until 1933 where they were only 1/3 of the peak level. By 1937, most of the employment and bankruptcies were back to pre-depression levels Because government intervention through massive spending, construction and military preparedness caused a significant need for workers and therefore the employment situation improved It shows why people supported hitler and the Nazi party in the 1930s in Germany. Under the Hindenberg government, the economy was bad and got worse, after the Nazis took over, the economy got remarkably better, especially businesses. This was partially due to rearmament spending.

Depression unemployment chart

Depression unemployment data analysis Observations – what does this chart show? Analysis – Why do these data look this way? Impact – So what? Why does this matter?  All countries had peak unemployment in 1932 except US which peaked in 1933. Japan was not hit nearly as hard as the other 3 countries. Size of unemployment is not as important as percentage because total populations differ.  Because the great depression was global in scope, all of the countries were affected at more or less the same time. The US and Great Britain were fairly closely allied and economically connected also had a second dip into recession in 1938. Japan had already begun military spending and had not been as connected to the global economy It highlights why Smoot-Hawley tariff, protectionism, isolationism failed to fix the global economy It is important to know what is going on in other countries. It highlights also that government spending can improve the economic situation caused by depression. It also shows why the US was reluctant to want to be involved wiith the world and why Japan and Germany went with the totalitarian fascists.

The Popular Front in France was formed to deal with the Depression Very agricultural, but still hurt by depression Needed policies to help with wages, lower weekly hours and increase vacation Extreme and anti-democratic parties gained in popularity Socialist governments in Scandinavia successfully dealt with depression Massive public works projects Social welfare policies Very cooperative society Fascism

Post-WWI After WWI, Europe faced several economic problems: inflation, worldwide depression, instability of new democracies These mounting problems lead people to turn to totalitarian leaders who promised reform and glory

Rise of Fascism A political movement that stresses extreme loyalty to the state and its leader Fascist leaders promised to revive the economy and restore national pride

Rise of Fascism Basic Features of Fascism- Extreme Nationalism Glorify Action, obedience, discipline Loyalty to State Unquestioned Loyalty to single dictator Strict class structure Anti-Democratic (greed/corruption) Aggressive Expansion Censorship Control of private Economy leading to wealth for industry Use of Legalized Terror In what ways is Fascism similar to Stalinist Communism? In what ways is it different?

Rise of Fascism Economic Policy- Preserved Capitalism, but with Government direction of Business, Labor, Agriculture, Trade and Culture. Social Policies- Absolute Obedience to State Women, pushed from jobs- place is in the home having babies Patriotism- Extreme Nationalism Strict Discipline Fascist Youth- teach the values of a fascist society~ indoctrination

Rise of Fascism The Economic Despair of Post WWI Europe enables Fascist leaders like Mussolini and Hitler to rise to power. Why? Both the German People and the Italian people blame the Treaty of Versailles for their problems. Why?

Rise of Fascism Benito Mussolini- Mussolini came to power in an age of chaos and discontent in Italy. High unemployment, weak government, floundering economy. Mussolini was a fiery speaker. He created the Fascists party calling upon discontented veterans and youths to support his objectives. Promises order. Seizing Power- through his terror organization “The Black Shirts”, he organized attacks on unions, socialists and other elements of society that threaten his rise to power.

Rise of Fascism Benito Mussolini appealed to much of Italy: Focused on national pride- restoring the glory of the Roman empire. In October of 1922, Mussolini was appointed Prime Minister by King Victor Emmanuel III. Hitler will follow this model for his rise to power, and in fact met with Mussolini during his rise to power. Mussolini proclaimed himself “Il Duce”- “the leader”. He limited the press, fixed elections, used secret police, exiles and prisons.

Benito Mussolini In Italy, fascism gained followers because of disappointment over the 1919 Paris Peace Conference (territorial gains), inflation, and unemployment Mussolini promised economic reform and military power, Black Shirts – thuggish followers of Mussolini rioted and marched on Rome forcing King to appoint Mussolini leader of Italian government (He became Il Duce) Fascism and How Mussolini came to power

Benito Mussolini 1883-1945

HITLER AND THE RISE OF NAZI GERMANY Rise of Fascism HITLER AND THE RISE OF NAZI GERMANY Struggles of the Weimar Republic a. Germany’s first experiment in Democracy, is blamed for all the troubles plaguing Germany- economic depression, having to observe the terms of the treaty of Versailles, etc. b. Structure of Government- i. Parliament/ Legislative Branch- The Reichstag ii. Executive Branch- 2 positions- President and Chancellor C. Unrest and Downfall of the Weimer Republic- i. Mired in Inflation and economic depression - Reparations, Dawes Plan, Great Depression ii. Treaty of Versailles hated by all Germans iii. Jewish People become scapegoats for Germany’s troubles