The World In the 1930s

Cost of War  Cost of war had been over $200 Billion for the European countries  By 1918, almost all were bankrupt

Two Major Outcomes  Europe no longer dominates world affairs  U.S. & Japan  Democracy was spreading throughout Europe and world rapidly  Many were weak though because it was a new concept and each had multiple parties making it difficult to achieve a majority vote

Germany in Midst of Disastrous Inflation  1918– Loaf of bread was 2 marks  1922– Loaf of bread was 1,500 marks  Germans blamed their new government (Weimar Republic) for problems

Dawes Plan Helps Germany  1924, U.S. banker Charles Dawes gets a committee to lend $200 million from U.S. banks to Germany  This will stabilize their currency  Then, they make a new schedule for repayment of reparations (more realistic)  By 1929, German factories producing at same rate as in 1913

Treaties for Peace  Locarno  Germany and France would never wage war against each other  Germany would respect borders of Belgium and France  For this, Germany admitted into League of Nations  Kellogg-Briand  “Renounced war as an instrument of national policy”  Almost all countries signed  Problem: no way to enforce, L of N had no military

1929 The Great Depression  Factory production cut in half  86,000 businesses failed  9,000 banks closed  9 million people lost their savings  unemployment 25% in U.S.

What caused it?  Faming became more like an industry  Competition from other countries  Speculation led to Stock market collapse  “Black Tuesday” 1929 Stock market fell  Economic & Psychological Affects  Overproduction and under consumption

Depression Throughout the World  American investors panicked and called back loans to foreign companies and governments  Disaster for Germany and Austria  Manufacturing dropped 38 % worldwide  International trade dropped 65%  Democratic governments were faced with a crisis

New Deal  Roosevelt  Relief, recovery, reform  Public work projects– jobs for unemployed  Social Security Act of 1935  National debt instead of personal debt

Fascism  Emphasized autocratic and nationalist policies  Glorified the state  Belief that nations must suffer  Loyalty to the leader = loyalty to the state  Denied individual rights

Mussolini  Italy: high unemployment, people demanding change  Blackshirts: group of Fascists who beat up Communists and Socialists  1922 became Il Duce (leader)  Outlawed other political parties, censored radio stations and newspapers

Hitler  Studied art  Joined the National Socialist German Workers’ Party (Nazi for short)  Wrote Mein Kampf in 1923 while in jail

 1932 Nazi party was German’s largest  Gestapo: secret police  SS: security force loyal to Hitler  Controlled economy  Used propaganda against “inferior races”  Nuremberg Laws: Jews couldn’t teach, act in films, work in banks, get German citizenship  Kristallnacht: Nov 1938 demonstration of anger against Jews. 7,500 shops, 275 synagogues destroyed

Japan  Power of the prime minister limited by constitution  After Depression military leaders took over  Took over Manchuria  Encouraged the cult of the emperor

League of Nations  Weak  US and Soviet Union not members  Didn’t take a strong stand against fascism  Appeasement

Invasions  Japan put a puppet government in place in Manchuria  Withdrew from League of Nations  Italy attacked Ethiopia  Mussolini wanted to form an empire  Germany tries to undo the Treaty of Versailles

Germany  League of Nations appeased  Rome-Berlin Axis: agreement between Germany and Italy  Axis which Europe would revolve around  Reoccupied Rhineland  Between Germany and France  Were welcomed in

Spain  Civil war 1936  Used as a “training ground” for Germany and Italy  Sent tanks, cannons, airplanes to Nationalist forces precursor to WWII  precursor to WWII

Germany + Austria + Czechoslovakia = A Greater Germany  Austrians supported the Anschluss (union between Austria and Germany)