1. The Aftermath of WWI
Chapter 17 Section 1-2

2. Causes of the Great Depression
Depression – a period of low economical activity and rising unemployment
2 Causes
Downward spiral of economies in individual nations in the late 1920’s
International financial crisis involving the US stock market

3. Cause # 1 Farms were overproducing
Too much supply makes demand go down
That makes prices fall drastically
For example – prices of farm production were falling rapidly due to overproduction
The farmers couldn’t sell enough to make enough money to pay their bills
When they did sell their product it wasn’t worth as much as it used to be

4. Cause # 2
US investors had been putting money into Germany so Germany could pay their debts to France and Great Britain
By 1928, investors had pulled their money out of Germany to put into stocks in the US stock market
Damages the German economy
October 29, Black Tuesday - US stock market crashed and prices of stocks plunged
Many people lost all their money, savings, etc

5. Responses to Depression
In the US…
1932 – Franklin Delano Roosevelt b/c president
He b/g active govt. intervention in the economy
The New Deal – govt. funded projects that created jobs for people
Examples of Roosevelt’s New Deal
WPA – built bridges, roads, post offices, airports, etc
Social Security Act – created a system for old-age pensions and unemployment insurance
The New Deal helped employment and the US economy, but it did not bring us out of the Great Depression
WWII production brought US workers back to full employment

6. Effects of Depression
The Great Depression led many people to b/g to question their govt. and capitalism
Many b/g to have a renewed interest in Marxist doctrine
Marx said that capitalism would destroy itself through overproduction and it seemed to be coming true
Socialism and Communism b/c more popular
The Great Depression also led the masses to follow political leaders who offered a simple solution for dictatorial power
Dangerous people like Hitler and Mussolini

7. The Totalitarian State
By 1939 only two major European states remained democratic (France and Great Britain)
Totalitarian state – govt. that aims to control the political, economical, social, and cultural lives of its citizens
Totalitarians conquered the minds and hearts of their subjects through mass propaganda and high-speed modern communication
The totalitarian governments states were led by a single leader and a single political party

8. Fascism in Italy
Fascism – glorifies the state above the individual by emphasizing the need for a strong central government led by a dictatorial ruler
Any opposition to the govt. is suppressed
After WWI Italy experienced severe economical problems
Inflation grew
Industrial and agricultural workers staged strikes

9. Mussolini’s Italy
Fascism grew b/c of middle-class fear of socialism, communism, and disorder
Benito Mussolini – fascist Prime Minister of Italy
Mussolini came to power by knowing people’s fears and preying on them
He knew nationalism was a powerful force and used it to gain power

10. Lenin’s Soviet Union
Lenin – Communist leader of Russia during and after the Russian Civil War
1922 – Lenin and the Communist party created a new state
The Union of Soviet Socialist Republics (USSR)
Also called the Soviet Union
Lenin died 1924

11. Stalin’s Soviet Union
Stalin – Communist leader of the USSR b/f, during, and after WWII
Like Hitler, Stalin was one of the greatest mass murderers of history
It is estimated that he is responsible for executing as many 25 million people
He “got rid” of anyone who opposed him and his political beliefs