1. The Western Democracies Stumble
Chapter 13 Section 2
“In 1919, the three Western Democracies—Briatin, France, and the US—Appeared powerful. They had ruled the Paris Peace Conference and boosted hopes for democracy among the new nations of Eastern Europe. Beneath the surface, however, postwar Europe faced grave problems. To make matters worse, many members of the younger generation who might have become the next great leaders had been killed in the war.”

2. Politics in the Postwar World
Party Struggles in Britain
Labour Party surpassed Liberal Party in strength, Conservatives dominated politics
Irish Independence at Last
1922 – The IRA helps Ireland become a self-governing Irish Free state
France’s Troubled Peace
Several parties competed for power, so a series of quickly changing coalition governments ruled

3. “The Red Scare” and Isolationism in the US
Unlike the rest of the world, the US emerged from WW1 in the best financial shape
Despite minimal loss during the war, the US experienced some domestic unrest
Fear of radicals and the Bolshevik Revolution
: police rounded up suspected foreign born radicals and expelled them from the US
Led to a limit on immigration from Europe

4. Postwar Foreign Policy
Arguing Allies
France wanted to keep Germany out
“Maginot Line”, allying with the Soviet Union, enforcing the Treaty of Versailles
Britain wanted to relax the treaty to prevent Germany from becoming weak while France and the Soviet Union got strong
The Search for Peace
Germany and the Soviet Union joining the League of Nations in 1926
“Kellogg-Briand Pact” designed to end wars between countries; helped the great powers pursue “disarmament”
Political cartoon pg. 429
The League’s Weakness
Was unable to enforce its policies and ideals
1931: condemned Japan for invading Manchuria, but did not take military action to stop it

5. Postwar Economics Britain and France recover The US Booms
Britain: deeply in debt, factories out of date, severe unemployment, low wages, worker unrest and frequent strikes; “general strike” in 1926
France: economy recovered quickly with financial reparations and territories from Germany, but still had economic swings
Overall, a rise in the standard of living
The US Booms
Emerged from the war as the world’s leading economic power

6. The Great Depression Falling Demand and Overproduction
Farmers who had been vital and prospered during the war were less in demand and stopped buying
New technology led to “overproduction” which led to lay offs
Crash and Collapse
Crisis in “finance”, NYSE at an all time high, so the “Federal Reserve” raised interest rates in 1928 and 1929—it didn’t work
Fall 1929: many people sold their stock at once, the market crashed, people lost their jobs; aggravated the economic decline
Cycle of overproduction and falling demand led to “The Great Depression”
The Depression Spreads
American banks stopped loaning money abroad, demanded repayment of foreign loans, Germany, France, & Britain couldn’t may their payments
Everyone increased tariffs, and the depression touched every corner of the world

7. The Democracies React to the Depression
Britain and France Search for Solutions
Britain: set up a coalition government, but 1 in 4 were still unemployed
France: leftist parties united behind Leon Blum, who passed some social legislature, but did not satisfy radicals; led to strikes and no more Blum
In an attempt to end the Great Depression, Western countries put programs into place that lessened suffering, but did not solve the problems

8. Roosevelt Offers the US a New Deal
President Hoover did not want to intervene in private business matters
1932: President Roosevelt elected and introduced the “New Deal” as a package for Depression relief
Federal government becomes more involved in people’s every day lives
New laws regulate stock exchange, protect bank deposits
Government programs created jobs, gave aid to farmers
New Social Security system
1934: The Dust Bowl destroyed farmlands, people moved to the West Coast to start over