1. The Great Depression of the 1930s
Europe Gets Depressed
The Great Depression of the 1930s

2. Great Depression Causes
How do
we respond?
Keynesian
Ideas =
Government
ACTION +
Deficit
Spending

3. Gr Dep Responses: GB v F In GB…
Ramsey MacDonald’s “National Government”
↑↑Taxes + ↓↓ Benefits
Off Gold Std = cheap
Tariff on “outside” imports (non-Empire) =
Stagnant but Stable
Avoids fascism, WHY?
In France…
↓ Wages + ↑Tariffs >>> Gov’t Change
Right Wing… Fascist?
Action Francaise
Croix de Feu
Stavisky = corruption >>
Is a “coup” brewing?
Elected Left Wing coalition led by Leon Blum + the Popular Front
Strikes > Pro-Labor ∆ > National Economy
3rd Republic barely survives

4. Democracy Responses, The Bottom Line…
Both GB + F survived the initial shock of Gr Dep
Each followed own path
Keynes Ideas NOT followed
Neither GB nor F solved the problem
What else can one do in such a situation?

5. Gr Dep Responses: Scandinavian Success
Moderate Socialist governments in place
Developed Ag / Industry “Co-Operatives”
Privately owned & operated by group
Expanded social services
Pensions, Ū benefits, healthcare…
Housing assist, paid vacation… trade-off?
High taxes to pay for large benefits!
Is it worth it?

6. Fascist Response… But wait… Totalitarian What is Fascism again?
State controls ALL
State over People
State #1
A Leader
Dictator
Duty of Citizen
Obey, Serve
Rights Limited
Control People
IL Duce & Der Führer
Gen. Franco of Spain

7. Fascist Response: Italy
Mussolini goal: Self-sufficiency!
Public works + Subsidy + Tariffs = 
Corporatism = Planned economy + private capital ($$) + gov’t assist w/ labor
Unions serve State (Fascist) = NO strike!
Syndicates > Corporations: Major Industry
↑↑ Gov’t control + ↑↑ Corruption
Fascism (Italy) = ↓↓↓ economy = 
Invades Ethiopia > L of N limited sanctions

8. Another Fascist Response: Nazi Germany
Seize control
Article 48 + Enabling Act
Purges (Roehm) + Police State (SS)
State control: Society + Economic Life
No unions / rights >> Labor Front = arbitration
Capital ($$) serves State
Public Works
Autobahn + Canals + Farms = Fully Employed!
Renounce Versailles Treaty
Re-Armament >> Jobs! Technology ↑↑

9. Forced Industrialization
Soviet Response…
Forced Industrialization
Gosplan > 5-Year Plans (Quotas)
Economic Growth !! Cost??
Forced Collectivization (Farms)
Kulaks + Religion = Enemy of State
Ukrainian Famine
Forced Urbanization
↓↓ Conditions + Shortages =  Fear!
Forced Unity
Great Purge = Show Trials
Gulag / Torture / Execution

10. Great Depression Responses:
At first glance, who was most successful?
Why?
Evaluate the responses in terms of Costs v. Benefits
Under which system would you wish to live given the circumstances?