Between the Wars: Depression & Authoritarianism –

1930s

Chapter 29, part2Pg. 690-703

Chronology & Themes

Economic depression created broad, global effects: political polarization greater state

control of economy loss of confidence in

democracy

Causes & Debacle of Economic Depression

Stock market surge (based

on loans)

Post-War Inflation

(illusion ofprosperity)

Competition& Rising Efficiency

Over-production

Reduced prices & profits

LostConfidence

1929 stockmarket crash

Bank failures & dried upInvestment

Production slows

Risingunemployment

Economiccollapse

Shattered social &

political ideals

Economic Responses in Europe & U.S. W. Euro gov’ts responded ineffectively

High tariffs & spending cuts further slow economies

Inspired political polarization or overthrow EX – Popular Front

Scandinavia, the exception, increased spending which created a welfare state

U.S. initially duplicated European mistakes, but New Deal takes Scandinavian approach by increasing spending & reforming banking Restored faith in gov, preventing extreme

political change

Germany – Nazi Political Response

Depression & Treaty of Versailles make fascism a clear choice

Fascist, totalitarian gov, led by Hitler, quickly crafted Emphasized unity, strong leadership &

military, economic planning Purged opponents w/ Gestapo Used personal hatred of Jews to create

scapegoat for all Germany’s ills

Hitler speech before Reichstag (July 13, 1934) addressing his elimination of political opponents.

"I gave the order to shoot those who were the ringleaders in this treason, and I further gave the order to burn down to the raw flesh the ulcers of this poisoning of the wells in our domestic life. …I am ready to undertake the responsibility at the bar of history for … the dearest thing that has been given us in this world--the German people and the German Reich!"

Europe – Fascism Spreads in Response

Hitler’s success lead to spread of fascists ideas in E. Europe Hungary, Romania

Spain experiences civil war as result of liberal feuds w/ authoritarian supporters Not fully fascist, but new authoritarian gov

takes root advancing conservatism W. Euro & U.S. respond weakly, fearing

another war & distracted by depression

Latin America – Political Response

Depression & weak middle-class led to floundering liberalism → polarization

Authoritarianism w/ fascist sympathies succeeds Mexico: Corporatism – land reform, communal

farms, state oil monopoly, appeal Brazil & Vargas: state action in economy,

repressive w/o broad support Argentina & Peron: authoritarian w/ broad

support by creating alliance of workers, industrialists & military

Japan – Militarism in Response

Depression sparks polarization w/ military exerting executive control

Imperialist ambitions intensified & expanded for economic protection Manchuria, occupation of China, & SE Asia? Promoted culture & economy in Korea

Economy crashed & responded quickly Increased gov spending reduced

unemployment Assembly line & lifetime contracts → rapid

economic growth & stability

Hideki TojoRussian propaganda

poster to join collective farm

Soviet Union - Stalinism

Buffered from depression effects by separate communist economy

Collectivization (collective farms)+’s: share expensive machines, control

peasants, stable food supply, free labor for industry

-’s: messy transition = famine, central planning w/ little incentives

Industrialization (major goal) Overwhelming success w/ state five-year

plans, clear goals, new factories Replaced price competition w/ state allocation

Soviet Union - Stalinism

Industrialization met w/ incentives, welfare services, & problem-solving

Stalin exerted total control Controlled arts & sciences Used secret police & party purges ruthlessly

USSR gradually shift from inward focus to more active diplomacy Tension w/ Germany, but brief alliance to

regain territory