1. The Rise of Fascism

2. Last of Absolute Monarchs
The last of the European Absolute monarchies are ended due to WWI.
Kaiser Wilhelm II
Czar Nicholas II
Emperor Franz Josef and Karl I

3. New Democracies of Europe
Parliamentary governments with many parties
Coalitions of parties are short lived
Hard to focus on long term goals
Resulted in weak leadership

4. Germany During the Weimar Republic
Est at end of WWI after Kaiser Wilhelm II abdicates the throne
Born in defeat
1ST act was to sign the Treaty of Versailles

5. Weaknesses of the Weimar Republic
No tradition of democracy in Germany
7 major political parties and multiple minor ones
Weimar government, not the Kaiser, had signed the Treaty of Versailles
Germany had not raised taxes during the war, leading to a weakened economy after the war

6. Slight Economic Recovery After WWI
Dawes Plan- $200,000,000 from American banks to help stabilize European economies
Small boom in European economies based on the American economy and investment
Roaring 20’s

7. Stock Market Crash Oct. 24, 1929- Black Thursday
Great wealth in stocks disappears in 1 day

8. Overproduction and Under Consumption
Top 5% wealthiest Americans earning 1/3 of all income in the US
To increase profits, this wealthy minority increases production of goods
Majority of Americans are too poor to buy these consumer goods without CREDIT

9. Overproduction and Under Consumption
Under consumption leads to cuts in production
Cuts in production leads to layoffs
Layoffs mean fewer can buy products, which leads to further cuts in production
Layoffs mean fewer can pay off debts from credit used to buy consumer goods

10. Farmers
During WWI, Europe’s farms were battlefields and Europe’s farmers were soldiers
US farmers had overproduced during WWI to meet European demand
US farmers had improved farms, buying more land and machines, or switched to cash crops assuming consumption levels would remain stable
US farmers had bought land and machines on credit
As Europe begins to farm again after WWI, prices drop. Grain hits lowest prices in 400 years.

11. The Banks Begin To Fail
When the economy starts to go down, more and more people can’t pay back debts from credit they took
As debts aren’t paid, banks start to fail
As banks fail, people start to panic and pull their money from the banks
Banks had invested deposit money and could not cash all deposits when called

12. The Great Depression American banks fail US investment in Europe stops
European economy begins to fail
Depression spreads world wide
Only one major world power doesn’t experience the Depression

13. Economic Depression in Germany
US loans stop, causing German economy to collapse
German factories stop production and fire workers
Banks close
40% unemployment by 1932

14. Hyperinflation 1918-1923 Drastic increase in inflation in Germany
1918 price of bread- 2 Marks
Dec price of bread- 40 Marks
Dec price of bread Marks
Summer 1923 price of bread- 4,000,000 Marks, 1 beer is 2,000,000 Marks
Upper classes not as affected because price of land and factories rise with inflation, but salaries can’t keep up

15. Economic Situation Makes Hitler Popular
Nazi Party is largest political party by 1932
January Hitler is named Chancellor by German President
As Chancellor, Hitler calls for parliamentary elections

16. Reichstadt Fire
The night before parliamentary elections, the Reichstadt is set on fire.
Hitler blames the communists, the main competition for the Nazis in the election, for the fire.
Nazis win a majority in parliament

17. Nazi Dominated Parliament
Passes Enabling Act which gives Hitler absolute power for 4 years.
Hitler has risen to absolute power through the democratic system of the Weimar Republic.

18. Lack of Faith in Democracy
Because of Great Depression, many had lost faith in the new democratic governments of Europe (and elsewhere).
Some support Communism (why?)
Many others support Fascist leaders

19. Fascism Strongly Nationalistic- nations must struggle/Social Darwinism
Belief that each class had a function in society. Individuals must struggle , just as nations must. Those who deserve to, will rise to the top.
Allied themselves with aristocrats and industrialists. Fascism legitimized these groups place of privilege in society and didn’t threaten this privilege as communism did
Autocratic Government
State is more important than the individual