YEARS OF CRISIS

Section One:
Postwar Uncertainty

SETTING THE STAGE

MAIN IDEA: SCIENCE AND TECHNOLOGY

The postwar period was one of loss and uncertainty but also one of invention,
creativity, and new ideas.

WHY IT MATTERS NOW

Postwar trends in physics, psychiatry, art, literature, communication, music, and
transportation still affect our lives.

The horrors of World War I shattered the Enlightenment belief that process would
continue and reason would prevail. In the postwar period, people began questioning
traditional beliefs. Some found answers in new scientific developments, which challenged
the way people looked at the world.

Many enjoyed the convenience of technological improvements in transportatio and

communication.

A NEW REVOLUTION IN SCIENCE

The ideas of Albert Einstein and Sigmund Freud had an enormous impact on the 20 th century.
These thinkers were part of a scientific revolution as important as that brought about
centuries earlier by Copernicus and Galileo.
IMPACT OF EINSTEINS THEORY OF RELATIVITY: German-born physicist Albert
Einstein offered startling new ideas on space, time, energy, and matter.
Scientists had found that light travels at exactly the same speed no matter what direction
it moves in relation to earth.
In 1905, Einstein theorized that while the speed of light is constant, other things that
seem constant, such as space and time, are not.
Space and time can change when measured relative to an object moving near the speed
of lightabout 186,000 miles per second.
Since relative motion is key to Einsteins idea, it is called the theory of relativity.
Einsteins ideas had implications not only for science but for how people viewed the
world.

INFLUENCE OF FREUDIAN PSYCHOLOGY

The ideas of Austrian physicians Sigmund Freud were as revolutionary as Einsteins.

Freud treated patients with psychological problems.

From his experiences, he constructed a theory about the human mind.

He believed that much of human behavior is irrational, or beyond reason.

He called the irrational part of the mind the unconscious.

In the unconscious, a number of drives existed, especially pleasure-seeking drives of

which the conscious mind was unaware.

Freuds ideas weakened faith in reason.

ART

We will take a look at the art during our next gallery walk!

YEARS OF CRISIS
Section Two:
A Worldwide Depression

MAIN IDEA: An economic depression the United States spread throughout the world and
lasted for a decade.

WHY IT MATTERS NOW: Many social and economic programs introduced worldwide to
combat the Great Depression are still operating.

Setting the Stage: BY the late 1920s, European nations were rebuilding war-torn
economies. They were aided by loans from the more prosperous United States.

Only the United States and Japan came out of the war in better financial shape than
before.

In the United States, Americans seemed confidence that the country would continue on
the road to even greater economic prosperity.

One sign of this was the booming stock market. Yet the American economy had serious
weaknesses that were soon to bring about the most severe economic downturn the world
had yet known.

POSTWAR EUROPE

In both human suffering and economic terms, the cost of World War I was immense. The
Great War left every major European country nearly bankrupt.

In addition, Europes domination in world affairs declined after the war.

Unstable new Democracies: Wars end saw the sudden rise of new democracies. From
1914-1918, Europes last absolute rulers had been overthrown.

The first of the new governments was formed in Russia in 1917.

THE WEIMAR REPUBLIC

Germanys new democratic government was set up in 1919. Known as the Weimar Republic, it
was named after the city where the national assembly met.

The Weimar Republic had serious weaknesses from the start.

What were they?

Germany lacked a strong democratic tradition. Furthermore,

postwar Germany had several major political parties and
many minor ones.
Worst of all, millions of Germans blamed the Weimar
government, not their wartime leaders, for the country's
defeat and postwar humiliation caused by the Versailles
Treaty.

INFLATION CAUSES CRISIS IN GERMANY

Germany also faced enormous economic problems that had begun during the war.

Unlike Britain and France, Germany had not greatly increased its wartime taxes.

TO pay the expenses of the war, the Germans had simply printed money.

After Germanys defeat, this paper money steadily lost its value.

Burdened with heavy reparations payments to the Allies and with other economic
problems, Germany printed even more money.

As a result, the value of the mark, fell sharply.

Severe inflation set in.

Germans needed more and more money to buy even the most basic goods.

For example, in Berlin a loaf of bread cost less than a mark in 1918, more than 160 marks
in 1922, and some 200 billion marks by late 1923.

People took wheelbarrows full of money to buy food.

As a result, many Germans questioned the value of their new democratic government.

Attempts at Economic Stability: Germany recovered from the 1923 inflation thanks largely
to the work of an international committee.

The committee was headed by Charles Dawes, an American banker.

The Dawes Plan provided for $200 million load from American banks to stabilize German
currency and strengthen its economy,.

The plan also set more realistic schedule for Germanys reparations payments.

Put into effect in 1924, the Dawes Plan helped slow inflation. AS the German economy
began to recover, it attracted more loans and investments from the United States.

By 1929, German factories were producing as much as they had before the war.

EFFORTS AT A LASTING PEACE

As prosperity returned, Germanys foreign minister, Gustav Stresemann, and Frances

foreign minister, Aristide Briand, tried to improve relations between their countries.

In 1925, the two ministers met in Switzerland with officials from Belgium, Italy, and Britain.

What did they do? They signed a treaty promising that France and Germany would never
again make war against each other.

Germany also agreed to respect the existing borders of France and Belgium.

It was then admitted into the League of Nations.

Unfortunately, the treaty had no means to enforce its provisions. The League of Nations
had no armed forces so

But the peace agreement seemed good! Really. A good start! Right?

THE GREAT DEPRESSION

People could not pay the money they owed on margin purchases.

Stocks they had bought at high prices were now worthless.

Within months of the crash, unemployment rates began to rise as industrial production,
prices, and wages declined.

A long business slump which would come to be known as the Great Depression, followed.

The stock market crash alone did not cause the Great Depression, but it quickened the
collapse of the economy and made the Depression more difficult.

RESULTS?

Many countries depended on exporting goods to the United States so they suffered.

The US raised tariffs and it set off a chain reaction.

World trade dropped by 65 percent.

Unemployment soared.

Because of war debts and the dependence on American loans and investments, Germany
and Austria were particularly hard hit.

THE WORLD CONFRONTS THE CRISIS

The Depression confronted democracies with a serious challenge to their economic and
political systems.

Each country met the crisis in its own way.

Britain Takes Steps to Improve Its Economy : The Depression hit

Britain severely. To meet the emergency, British voters elected a multiparty coalition
known as the National Government.

It passed high protective tariffs, increased taxes, and regulated the currency.

It also lowered interest rates to encourage industrial growth

By 1937, unemployment had been cut in half, and production had risen above 1929
levels.

Britain avoided political extremes and preserved democracy.

 France Responds to Economic Crisis: Unlike Britain, France had a more

self-sufficient economy. In 1930, it was still heavily agricultural and less dependent on foreign
trade.
By 1935, one million French workers were unemployed.
The economic crisis contributed to political instability. In 1933, five coalition governments
formed and fell. Many political leaders were frightened by the growth of antidemocratic forces
both in France and in other parts of Europe .

In 1936, moderates, Socialists, and Communists formed the

coalition.
The Popular Front, as it was called, passed a series of reforms to help the workers.
Unfortunately, price increases quickly offset wage gains. Unemployment remained high. Yet

France also preserved its democratic government.

SOCIALIST GOVERNMENTS FIND SOLUTIONS

The Socialist governments in the Scandinavian countries of Denmark, Sweden, and

Norway also met the challenge of economic crisis successfully.

They built their recovery programs on an existing tradition of cooperative community

action.

In Sweden, the government sponsored massive public works projects that kept people
employed and producing.

Scandinavian countries raised pensions for the elderly and increased unemployment
insurance, subsidies for housing, and other welfare benefits.

To pay for these benefits, the governments taxed all citizens. Democracy remained intact.

RECOVERY IN THE UNITED STATES

In 1932, in the first presidential election after the Depression
had begun, US voters elected Franklin D. Roosevelt.
His manner appealed to millions of Americans who felt
bewildered by the Depression.
And everything else.we will discuss in US II!

QUIZ

How did World War I change the balance of economic power in the world?

What problems did the collapse of the American economy cause in other countries?

How did Europe respond to the crisis?

YEARS OF CRISIS
Section Three:
Fascism Rises in Europe

FASCISM RISES IN EUROPE

MAIN IDEA: In response to political turmoil and
economic crises, Italy and Germany turned to
totalitarian dictators.
WHY IT MATTERS NOW: These dictators changed the
course of history, and the world is still recovering from
their abuse of power.

FASCISMS RISE IN ITALY

Setting the Stage: Many democracies, including

the United States, Britain, and France, remained
strong despite the economic crisis caused by the
Great Depression.
However, millions of people lost faith in democratic
government.
In response, they turned to an extreme system of
government called fascism.

WHAT IS FASCISM?
Fascism was a new, militant political movement that emphasized loyalty to
the state and obedience to its leader. Unlike communism, fascism had no
clearly defined theory or program.
Nevertheless, most Fascists shared several ideas.
They preached an extreme form of nationalism, or loyalty to ones
country.
They believed the nations must strugglepeaceful states were doomed
to be conquered.
They pledged loyalty to an authoritarian leader who guided and brought
order to the state.
In each nation, Fascists wore uniforms of a certain color, used special
salutes, and held mass rallies.

BENITO MUSSOLINI
Mussolini Takes Control : Fascisms rise in Italy was
fueled by bitter disappointment over the failure to win
large territorial gains at the 1919 Paris Peace Conference.
Rising inflation and unemployment also contributed to
widespread social unrest.
To growing numbers of Italians, their democratic
government seemed helpless to deal with the countrys
problems.
They wanted a leader who would take action.

 A newspaper editor and politician named Benito Mussolini boldly promised to

rescue Italy by reviving its economy and rebuilding its armed forces.
He vowed to give Italy strong leadership. Mussolini had founded the Fascist
Party in 1919. As economic conditions worsened, his popularity rapidly
increased. Finally, Mussolini publicly criticized Italys government. Groups of
Fascists wearing black shirts attacked Communists and Socialists on the
streets.
In October 1922, about 30,000 Fascists marched on Rome. They demanded
that King Victor Emmanuel III put Mussolini in charge of the government.
The king decided that Mussolini was the best hope for his dynasty to survive.
Mussolini took power legally after much violence and threats of an uprising.

OKAY, OKAY. SO WHAT DOES MUSSOLINI DO?

He was the leader of Italy and abolished democracy and
outlawed all political parties except the Fascists.
Secret police jailed his opponents.
Government censors forced radio stations and publications to
broadcast or publish only Fascist doctrines.
He outlawed strikes.
He controlled the economy.
EVEN WITH ALL THIShe never had as much total control as
Hitler or Stalin.

HITLERS RISE TO POWER IN GERMANY

When Mussolini became dictator of Italy in the mid-1920s,
Adolf Hitler was a little-known political leader whose early life
had been marked by disappointment.
We know Adolf Hitler was a World War I veteran who was
twice awarded the Iron Cross, a medal for bravery.
The Rise of the Nazis: At the end of the war, Hitler settled in
Munich. In 1919, he joined a tiny right-wing political group.
This group shared his belief that Germany had to overturn
the Treaty of Versailles and combat communism.

 The group later named itself the National Socialist German Workers Party, called Nazi
for short.
Its policies formed the German brand of fascism known as Nazism.
Private militia was known as storm troopers or Brown Shirts
Within a short time, Hitlers success as an organizer and speaker led him to be chosen
der Fuhrer, or the leader, of the Nazi party.
Inspired by Mussolinis march on Rome, Hitler and the Nazis plotted to seize power in
Munich in 1923.
The attempt failed, and Hitler was arrested. He was tried for treason and served FIVE
YEARS in prison. This is when he writes Mein Kampf. (My Struggle)
In this book, he asserted that the Germans, who he called Aryans were a master race.
He declared that non-Aryan races such as Jews, Slavs, and Gypsies were inferior.
He called the Versailles Treaty an outrage and vowed to regain German lands.

 He also declared that Germany was overcrowded and needed

more lebensraum, or living space. He promised to get that
space by conquering eastern Europe and Russia.
After leaving prison in 1924, Hitler revived the Nazi Party. Most
ignored him until the Great Depression ended the nations brief
postwar recovery. When American loans stopped, the German
economy collapsed. Civil unrest broke out. Frightened and
confused, Germans now turned to Hitler, hoping for security and
firm leadership.

CIVIL WAR ERUPTS IN SPAIN

Hitler and Mussolini again tested the will of the democracies in Eruope in the
Spanish Civil War.

Spain had been a monarchy until 1931, when a republic was declared.

The government was run by liberals and Socialists.

In July 1936, army leaders favoring a Fascist-style government, joined

General Francisco Franco in a revolt.

Thus began a civil war that dragged for three years.

Hitler and Mussolini sent troops to Spain to fight for the Fascists. They won.

OTHER COUNTRIES FALL TO DICTATORS

While Fascists took power in Italy and Germany, the nations formed in
eastern Europe after World War I also were falling to dictators.
In Hungary in 1919, after a brief Communist regime, military forces and
wealthy landowners joined to make Admiral Miklos Horthy the first European
postwar dictator.
In Poland, Marshal Jozef Pilsudski seized power in 1926.
In Yugoslavia, Albania, Bulgaria, and Romania, kings turned to strong-man
rule.
They suspended constitutions and silenced foes. In 1935, only one
democracy, Czechoslovakia, remained in eastern Europe.
The only European nations with strong democratic traditionsBritain,
France, and the Scandinavian countrieswere the ones to survive.

 By the mid-1930s, the powerful nations of the world were split

into two antagonistic campsdemocratic and totalitarian.
And to gain their ends, the Fascist dictatorships had indicated a
willingness to use military aggression.
Most brutal? Russian Communists and the Nazis

YEARS OF CRISIS
Section Four:
Aggressors Invade Nations

 Main Idea:
As Germany, Italy, and Japan conquered other
countries, the rest of the world did nothing to
stop them.
Why it Matters:
Many nations today take a more active and
collective role in world affairs, as in the United
Nations.

 By the mid-1930s, Germany and Italy seemed bent on

military conquest. The major democraciesBritain,
France, and the United Stateswere distracted by
economic problems at home and longed to remain at
peace.
With the world moving toward war, many nations pinned
their hopes for peace on the League of Nations.
As fascism spread in Europe, however, a powerful nation
in Asia moved toward a similar system.

JAPAN IN A NUTSHELL
During the 1920s, Japan became more democratic. Things were
looking good.
But when the Great Depression struck in 1929, many Japanese
blamed the government.
Military leaders gained support and soon won control of the country.
Unlike the Fascists, the militarists did not try to establish a new
system of government. They wanted to restore traditional control of
the government to the military.
Instead of a Hitler or Mussolini, the militarists made the emperor the
symbol of state power.

EUROPEAN AGGRESSORS ON THE MARCH

The Leagues failure to stop the Japanese encouraged
European Fascists to plan aggression of their own.
The Italian leader Mussolini dreamed of building a colonial
emperor in Africa like those of Britain and France.
Mussolini attacks Ethiopia. Its one of the only independent
nations in Africa. (Three of them)
Spears and swords of the Ethiopians were no match for Italian
airplanes, tanks, guns, and poison gas.
The leader of Ethiopia urgently pleaded for help from the
League of Nations. They did nothing.

HITLER DEFIES VERSAILLES TREATY

Hitler had long pledged to undo the Versailles Treaty. Among
its provisions the treaty limited the size of Germanys army.
In March 1935, the Fuhrer announced that Germany would not
obey these restrictions. The League only issued a mild
condemnation.
The Rhineland
Appeasement
Axis Powers
Nonaggression Pact