1. The Years Between the Wars

2. Europe Recovered From W.W.I
W.W.I had huge costs
Millions of lives had been lost
Combined $200 billion had been spent fighting the war.
As a Result
By 1918 every major European country was nearly bankrupt

3. Effects of W.W.I W.W.I affected Europe in two main ways.
1. Europe lost its dominance in world affairs.
Japan and U.S. became more dominant.
2. Sudden rise of new democracies.
Between 1914 and 1918 Europe’s last absolute rulers were all over-thrown.
For the first time in history most European countries were ruled by democratic governments.
Only two world powers came out of the Great war in better financial shape then when they entered. Japan and the US. Neither country had suffered fighting on its own soil and ultimately both had expanded their international trade during the war.
The Hohenzollerns in Germany and the Hapsburgs in Austria-Hungary and the Romanovs in Russia.
In Russia remember the new democratic government fell to a communist dictatorship.

4. New Republics The new republics that had formed were shaky.
Even nations that had democracy for many years experienced problems.
European countries had so many political parties that no one party could rule alone.
France and Italy already had parliament systems prior to WWI.
The situation was the Worst in Germany…where the people felt little loyalty their government

5. Germany’s Post War Weimar Republic Faced enormous economic problems
The democratic government that was set up in Germany after 1919.
They signed the Treaty of Versailles and as a result the population saw the government as traitors
Weimar Republic would prove to have serious weaknesses.
Faced enormous economic problems
Spent $37 Billion in W.W.I but only taxed its people $1.5 Billion.
To make up difference Germany printed money when needed.
Skyrocketing inflation.
Money lost its value.
The new representatives of the Weimar Republic had been the one’s to sign the treaty of Versailles. Therefore, much of the population saw the government as traitors.
Most Germans would blame the Weimar government and its weak leaders for German’s problems. Government is always the easy scapegoat.
Who or what was really to blame?
Reality is the war caused Germany’s problems

6. The German Mark

7. The Dawes Plan Germany recovered from the 1923 inflation.
Headed by Charles Dawes (American)
Financial plan to strengthen the German Economy
$200 Million loan from America banks to stabilize Germany currency.
Set realistic schedule for Germany’s reparations payments
Extremely Successful
By 1929 Germany factories were producing as much as they had in 1913.
Charles Dawes was an American banker and statesman. He would head an international committee that worked out a financial plan to strengthen Germany’s economy.

9. A Hope For Peace
As prosperity returned to Germany they returned to playing an active role in European affairs.
1925 Germany and France signed a treaty
France and Germany should never make war against each other.
Germany will respect existing borders of France and Belgium
As a result Germany was admitted into the League of Nations.
Germany’s foreign minister befriended Frances foreign minister. France’s foreign minister was a moderate who favored better relations with Germany.
This treaty in 1928 would lead to a bigger peace pact.

10. Kellogg-Briand Pact The Kellogg-Briand Pact
Originally an agreement between America and France.
Other countries would agree as well.
Countries that signed the treaty pledged to “renounce war as an instrument of national policy.”
Nearly every country in the world would sign.

11. Kellogg-Briand Pact: 1928
15 nations committed outlawing aggression and war for settling disputes
Problem  no way to enforce
League of Nations had no armed forces of its own.

12. 1920s U.S. economy was enjoying a boom in the 1920s.
But this growth disguised problems.
Weaknesses in the American Economy will cause serious problems.
Wealth is distributed unevenly
Most people are to poor to buy goods produced
Factory owners cut back on production and lay off employees
Farmers produce more food than people can eat.
Farmers cannot repay loans and lose their land.

13. The Great Depression
In 1929, stock prices in the United States plunged. The Great Depression was in effect.
Long business slump of the 1930s
Marked by bank failures, loss of savings, and unemployment.
Although the Great depression started largely in the United States

14. Not only the U.S.
When the American economy collapsed, the shock waves were felt around the world.
After the stock market crash, worried American investors began to call back their loans abroad to cope with the crisis at home.
This withdrawal dealt a hard blow to the economy of Western Europe.

15. World Wide Depression
The effects of the depression were felt worldwide.
Trade between nations dropped
Unemployment rates increased
Because of war debts and dependence on American loans, Germany and Austria were particularly hard hit.
World production fell by 38% between
Nations decided to raise tariffs (taxes on imported goods from other countries)….The goal was to increase sales by local countries….it backfired.
Effects felt World Wide….between the years of 1929 and 1932 world production fell by 38%
Nationwide the world suffered…even places like Latin America. Few countries now bought the sugar, beef, and copper they produced.

16. Meeting the Economic Crisis
Each country met the economic crisis its own way.
Britain-
Elects a coalition government—The National Government.
A governing body formed by multiple parties who must compromise on principles.
Passed high tariffs, increased taxes, regulated currency
Promoted industrial growth.
Brought about slow but steady economic recovery.
 Remember how we talked about earlier that one of Europe’s problems with democracy was the fact that there were too many competing political parities…..Britain decides to form a
Coalition government--a governing body formed by multiple parties who must compromise on principles
Britain….avoided political extremes. The government laid low and just slowly rebuilt the economy. No drastic measures were taken by any means.

17. France- Was somewhat more cushioned against the Depression.
Several governments lost support
Moderates, Socialists, and Communists combined to form a government (Popular Front).
Preserved democracy in spite of economic troubles.
Passed a series of reforms to help the workers
Pay increases
Holidays with pay
40 hour work week
Unlike Britain, France in 1930 still relies heavily on agriculture. It was less dependent of Foreign trade than was Britain. Therefore France was somewhat cushioned against the depression.
Popular Front– Scared the France would be taken over by antidemocratic groups that wanted dictatorship. Moderates and socialists came together and won power in the 1936 election.
Holidays with pay….40 hour work week. However price increases quickly offset wage gains and unemployment remained high

18. United States- Led by President Franklin D. Roosevelt (FDR)
Began a program he called the New Deal.
Large public works projects
Created jobs for millions
Business and Farmers also got help from the government.
Kept the public informed (Fireside chats)
Roosevelt was a very confident man and that appealed to many Americans.
Large public works projects to help create jobs for the unemployed.
Social security comes out of the NEW DEAL
Believed government spending would create jobs and start economic recovery.
Explained his policies to the American People…radio broadcasting of informal speeches.

19. In Response to Crisis
As a result of the conditions during the world wide depression. Millions of people lost faith in democratic government.
In many countries, frightened and desperate people turned to extremist political groups.