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THE WORLD

BETWEEN WARS
1919-1939
The Global Depression and Rise of Dictatorial
Regimes
Instability After World War I
● Nations were unhappy with the peace settlement at the end of WWI
● Woodrow Wilson’s settlement had many pieces that could lead to new
conflict
● The French government demanded strict enforcement of the Treaty of
Versailles
○ By April 1921, the Allied Reparations Commission determined that
Germany owed 132 billion German marks, that could be paid in
installments
● The German republic made its first payment in 1921 – a year later, the
German government faced a financial crisis and could not pay any
more reparations
○ France sent troops to Germany to attempt to collect reparations
Inflation in Germany
● In response to the French presence, German
workers went on strike
● The government mainly paid their salaries by
printing more paper money
○ This added to the inflation (rise in prices)
that had already begun at the end of the war
○ The German mark became worthless
○ In 1914, 4.2 marks = 1 U.S. dollar.
○ In 1923, 4.2 trillion marks = 1 U.S. dollar
● The U.S. revised the German repayment plan,
and loaned them a $200 million loan for
German recovery
The Great Depression
● An economic depression: a period of low economic
activity and rising unemployment
● Two factors played a role in starting the Great Depression:
○ A series of downturns in economies of individual
nations in the late 1920s
○ An international financial crisis involving the U.S. stock
market – much of European prosperity between
1924-1929 was built on U.S. bank loans to Germany
■ Investors withdrew funds from Germany and
European markets and by 1931 trade was
slowing, production declining, and unemployment
rising
Responses to the Depression
● During 1932 (worst year of the depression), nearly 1 in every 4 British workers
was unemployed
● About 5.5 million Germans (~roughly 30% of German labor force) had no jobs
● Governments did not know how to react, and their actions turned the crisis
into a global depression…
○ They raised tariffs to exclude foreign goods from home markets
○ Some governments attempted to slow investments prior to the crash, then did
nothing after the crash
○ This led masses of people to follow political leaders who offered simple solutions in
return for dictatorial power
● In 1919, most European states had democratic governments, but in the 1920s
maintaining these government was not easy
The Rise of
Dictators
The Rise of Dictators
● By 1939 only two major European states – France
and Great Britain – remained democratic
● The World War significantly impacted the political
systems of Italy, the Soviet Union, and Germany who
were left to succumb to totalitarian political systems
● Totalitarian State: characterized by the government’s
aims to control the political, economic, social,
intellectual, and cultural lives of its citizens
○ Power of the state was greater than ever before, led
by a single leader and party
○ Regimes wanted more than passive obedience,
they wanted to conquer the minds and hearts of
their subjects → mass propaganda techniques and
modern communications
Fascism
A political philosophy that glorifies the state
above the individual by emphasizing the
need for a strong, central government led by
a dictatorial ruler
The government controls the people and
stifles any opposition
Fascism in Italy
● In the 1920s, Benito Mussolini set up the first
European fascist movement in Italy
● He began his political career as a Socialist
○ Created the League of Combat
● Mussolini’s movement grew quickly →
people were angry about the lack of land
Italy received after the treaty, and rising
nationalism was a powerful force
● Mussolini became prime minister in 1922, in
which he used this power to create a Fascist
dictatorship
○ Police were given unrestricted authority to
arrest and jail anyone for political/non
political crimes
Fascism in Italy
● Mussolini wanted a totalitarian state…
○ Police watched citizens’ political activities
○ Exercised control over mass media →
spread propaganda
● Maintained traditional social attitudes
○ Family as the pillar of the state
○ Women were to be homemakers and
mothers as it was their mission in life
● Mussolini never achieved the degree of
totalitarian control like Hitler’s or Stalin’s
○ His fascist state did not completely destroy
the country’s old power structure
Russia and the Rise of USSR
● During the civil war in Russia, Lenin followed a policy
of war communism
○ Government controlled industries and seized
grain from peasants for army supplies
○ Drought caused famine between 1920-1922
where as many as 5 million people died → led to
industrial collapse
○ Russia is exhausted at this point
● Lenin’s New Economic policy pulled Russia out from
the abyss
○ NEP was a modified version of the old capitalist
system → small businesses could be privately
owned and operated
Russia and the Rise of USSR
● In 1922, Lenin and the Bolsheviks (became
the Communist Party) created a new state
called the Union of Soviet Socialist
Republics (USSR) (Soviet Union for short)
● The NEP was only a temporary retreat from
communist ideals → Lenin then dies in 1924
and a struggle for power begins
● Leon Trotsky vs. Joseph Stalin
○ Stalin had been general secretary, and
used this to gain complete control of the
Communist party
● By 1926, Stalin removed the Bolsheviks of
the revolutionary era and established a
dictatorship
Joseph Stalin
● Stalin’s 5-year plan planned for economic goals in
5-year periods
● Stalin wanted to shift Russia from agriculture to
industry
● Between 1928-1937 steel production in Russia
increased from 4 million to 18 million tons
○ Plan also quadrupled the production of heavy
machinery and doubled oil production
● Industrialization increased employment but living
conditions worsened, wages also decreased
● The government owned all of the land and made
peasants work on it
○ Those who resisted were sent to labor camps
○ “The Great Purge” → about 8 million arrested and
sent to labor camps, or executed
We will discuss Hitler, Nazism, and the
Rise of Nazi Germany during the next
Unit…WWII

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