UNIT 2

CRISIS OF THE DEMOCRACIES AND

THE SECOND WORLD WAR
(1919-1945)
 1. THE “ROARING TWENTIES”
1.1. The United States of America. The world’s leading power.
• U.S.A benefited enormously from the WWI: supplying food,
arms and industrial goods to the Allies.
• USA was the biggest creditor: having given war loans to
European nations.
• USA had half the world’s gold reserves, the dollar strong
currency, Bank of America world’s main investor.
• World’s leading economic and financial power.
• Prosperity in the USA, based on:
✔ New energy sources (oil and electricity), new industries
(automobile), new forms of media (radio, telegraph and
cinema).
✔ Production line system (Taylorism): increased productivity
and reduced costs.
✔ Consumer society: advertising campaigns, hire purchase
system and bank loans.
1.3. Europe’s difficulties
• Europe had to rebuild its economy: agriculture and
industry were destroyed, high unemployment, rising
prices and war loans to be repaid.
• Germany’s economic problems: was unable to pay
the war compensation (Treaty of Versailles) 🡪
massive inflation, Deutsche Mark lost its value,
huge rise in unemployment and a decline in the
population’s standard of living.
• Mid-1920s, situation began to improve🡪 Dawes
Plan (1924) and Locarno Treaties (1925).
 2. THE 1929 CRISIS AND THE GREAT DEPRESSION
2.1. The 1929 Stock market Crash. • Black Thursday
• Causes of the Stock Exchange ✔ Tension grew 🡪price of their
crash: shares was higher than real
th
✔ Overproduction: production grew value 🡪 24 October 1929
faster than demand 🡪 factories (black Thursday) New York
were producing more than selling Stock Exchange: everybody sold
🡪 too much stock🡪 prices their shares, but nobody
dropped🡪 businesses went bought them.
bankrupt🡪unemployment ✔ Sharp fall in share prices 🡪
increased🡪 fall in stock market crash🡪 banking
consumption🡪businesses crisis 🡪 people did not pay back
closed🡪… loans🡪 banks closed🡪
✔ Stock market speculation: many companies went bankrupt🡪
Americans invested in stock unemployment increased🡪 fall
market 🡪 share prices rose in consumption🡪 companies
sharply 🡪 little growth in US closed🡪…
industry (speculative bubble).
2.2. the Great Depression
• General economic recession: unemployment increased,
consumption fell and many factories closed down.
• The crisis spread from the USA to the rest of the world 🡪 US
banks withdrew their capital from Europe, American
companies reduced their investments.
2.3. The fight against the crisis.
• The USA’s New Deal.- Introduced by Franklin D. Roosevelt,
based on state intervention and its main areas of action
were:
✔ Economic: government gave aid to private companies,
created public companies and agricultural stock were
destroyed; introduced banking controls (low-interest loans).
✔ Social: major public plan, encouraged companies to raise
wages and reduced working week to 40 hours.
• Proposals from Europe: many countries held the view that
recovery would be boosted by state intervention🡪
protectionist measures, aid for businesses in crisis, price
controls, wage increases, create jobs in the public sectos, etc.
 3. FASCISM IN ITALY
3.1. Italy after the war
• After-effects of the Great War: + 700000 deads;
nation’s industry destroyed; massive foreign debt;
rising inflation.
• Italy was disappointed by peace agreements🡪
irredentism gained popular support.
• Political instability and acute social tensions: no
political party with sufficient majority (five different
governments between 1919-1922); strike
movement with revolutionary ideals (conservative
classes was scared from a social revolution like in
Russia).
3.2. the rise of fascism
• 1919: Benito Mussolini formed the Fasci di combattimento
(‘blackshirts’) 🡪 paramilitary groups carried out violent
attacks on workers’ unions and their leaders.
• 1921: Fasci🡪 National Fascist Party: build a strong state to
safeguard public order and private property, policy of
overseas expansion.
• Supporters: petite-bourgeoisie and big agricultural and
industrial owners; tolerated by Catholic Church and the king.
• 1922: elections 🡪 Fascist Party gained 22 seats out of 500 🡪
Mussolini claimed that the government was unable to
maintain public order and demanded to take over the
government.
• March of Rome (show of strength): 300000 blackshirts🡪
conservatives and military pressed the king🡪 Mussolini head
of the government in October 1922.
3.3. The Fascist dictatorship
• Two phases:
✔ From 1922-1924: pretended it was a parliamentary regime,
but people’s freedom was restricted and opponents
persecuted.
✔ After 1924 elections: Mussolini’s coalition won (use of
violence)🡪 authoritarian regime.
• Characteristics of new regime:
✔ The state was the main priority🡪 totalitarian state.
✔ Government of elites.
✔ Political parties banned, political leaders persecuted, strikes
prohibited, unions dissolved.
✔ Parliament replaced🡪 Chamber of Fasci and Corporations.
✔ Control over society.
✔ Autarkic economic policy.
✔ Mussolini: renamed himself as Il Duce (the leader).
✔ Italian Empire🡪 Italy invaded Ethiopia (Abyssinia) in 1935.
 4. THE RISE OF NAZISM IN GERMANY
4.1. The Weimar Republic
• 1918, Kaiser Wilhelm II abdicated after WWI 🡪Weimar
Republic.
• After elections: government formed of a coalition of three
pro-democracy parties (social democrats, Catholic and
liberals).
• Economic crisis (poverty and unemployment): war debt,
strict peace conditions (Treaty of Versailles).
• 1923, Germany didn’t pay the compensation payments 🡪
France occupied the Ruhr as a guarantee of payment.
• Opposition to the Weimar Republic:
✔ Left-wing revolutionaries 🡪workers’ revolution.
✔ Extreme-right groups🡪 decided to gain power by force
(Munich Putsch by the Nazi militias in 1923).
4.2. Hitler and the Nazi Party
• 1920, Adolf Hitler joined the National Socialist German
Workers Party (NSDAP)🡪 party’s leader.
• Hitler’s philosophy: Mein Kampf (My Struggle) 🡪
anti-democratic, anti-Bolshevic, anti-Semitism,
superiority of the Aryan race and to unite all
German-speaking people within a great empire (Reich).
• Hitler used demagoguery: he promised employment for
everyone, fewer profits for factories, higher wages and
more united society.
• Responsible for Germany’s economic crisis: the Jews,
the communists and the democrats.
• Paramilitary organisations: Assault Troops (SA) and the
Protective Sections (SS)🡪 they were involved in
insurgences and clashes with left-wing organisations.
4.3. The Nazis in power
• After 1924 (Dawes Plan and Locarno Agreements)🡪
improvement in economy🡪 social stability; 1929 crash: banks
to collapse, factories to close and unemployment to rise.
• Social unrest encouraged extremist parties. Nazi Party
supporters: middle classes, unemployment workers, big
names in industry and finance (financial aid); Communist
Party supporters: intellectuals and most working classes.
• 1932 elections: Nazi Party won 196 seats and the Communist
100 seats 🡪conservatives put pressure on President
Hindenburg to appoint Hitler as Chancellor of Germany🡪
new elections in March 1933.
• During electoral campaign: fire in the Reichstag (Parliament)
and Nazis blamed the Communist🡪Hitler declared a state of
emergency, persecute opponents, cut back.
• Elections took place 🡪 Nazi Party obtained 44% of the votes.
• 1934, Hitler was proclaimed Fürher (after dead of
Hinderburg) and Chancellor of the Third Reich.
 5. THE GERMAN THIRD REICH
5.1. Nazi totalitarism
• 1934: dctatorship in Germany 🡪banned all parties and unions –> Nazi
Party andNational Syndicalist Workers’ Front.
• Close parliament and abolished elections; purging public
administration: people could be sacked for political and racial
reasons.
• Police state: ruled by terror and police forces (SS and Gestapo).
• 1933 first concentration camps were created.
5.2. Social homogenisation
• German society based on superiority of Aryan race and ideolog of
national socialism🡪 education, culture and art.
• Racial purity🡪persecution of Jewish businesses and the Nuremberg
Laws (prohibition of mixed marriages and cancelling for those not
considered ‘racialy pure’.
• Hitler Youth: indoctrinated young people through educational and
leisure activities.
5.3. Autarky and Rearmament
• Economic policy 🡪 expansionist and military
projects:
✔ Strict control over the economy 🡪 economic
autarky (everything the country needed, produced
within its borders). Main priority areas: heavy
industry (arms industry).
✔ Public works programme (motorways and other
infrastructure)🡪 to reduce inflation and
unemployment.
✔ Strenghthened Germany’s armed forces by
instituting compulsory military service, forming an
army (Wehrmacht) and air force (Luftwaffe).
 6. THE SECOND WORLD WAR
6.1. The causes of the conflict
• Fascist Italy and Nazi Germany expansionist policy:
militarism and arms race.
• Nationalism (humiliation by peace treaties)🡪
aggressive foreign policy against victors of First
World War.
• Alliance with Japan (expansionist policy across Asia
and seize the colonies of the European powers).
• Democratic countries: USA did not get involved;
France and Great Britain concerned in their internal
problems 🡪 meeting of League of Nations 🡪
Germany, Italy and Japan left the organisation.
6.2. The march towards the war
• The three authoritarian countries began a series of
military attacks:
Japan: occupied Manchuria (1931); invading China
(1937).
Italy: invaded Ethiopia (1935) and occupied Albania.
Italy and Germany became involved in the Spanish Civil
War.
Germany: remilitarised the Rhineland (1936); occupied
Austria, Anchluss, forced Czechoslovakia to hand over
Sudetenland (1938)🡪 Czechoslovakia disappeared:
Bohemia and Moravia German protectorates; Slovakia
satellite state of Germany.
• Munich Conference (1938): France and Great Britain
6.3. The alliances and the outbreak of war
• Dictator’s expansion plans🡪 treaties:
✔ Italy and German (Spanish Civil War): Rome-Berlin Axis.
✔ Germany and USSR: Anti-Comintern Pact. Japan and Italy
signed later.
✔ Hitler and Mussolini renewed their alliance: Pact of Steel.
• 1939: Hitler demanded Danzig Corridor (German region in
Poland)🡪 France and Great Britain: defence treaty with
Poland.
• 1939: secret treaty between Hitler and Stalin🡪 the
German-Soviet Pact (to stop USSR aid to Poland).Two
nations agreed not to attack each other, support any other
countries and to divide up Poland.
• August 1939: alliance between France, Great Britain and
Poland.
 9. THE CONSEQUENCES OF THE WAR
9.2. The peace conferences • Germany: return the lands
• The Teheran Conference and regions, separate from
(November 1943): Austria and dismantle its
Churchill, Roosevelt and military industry; change the
Stalin; to decide on the border between Germany
joint military measures to and Poland; put the Nazi
bring the war to an end. leaders on trial at an
• The Yalta Conference international court.
(February 1945): Allied • Europe was divided into two
leaders agreed to areas of influence: East freed
eradicate the Nazi regime, by Soviet army; West freed by
divide up Germany and U.S. British forces🡪 rivalry
Austria into 4 areas (also between the two new global
Berlin and Vienna). powers.
• The Postdam Conference
9.3. The creation of the UN
• The UN was founded in April 1945 to replace the
League of Nations.
• Aims:
✔ To maintain international peace and suppress acts
of aggression, without interfering in internal affairs.
✔ To promote and defend human rights without
distinction (race, sex, language or religion).
✔ To achieve cooperation between different peoples.
✔ To promote peoples’ right to self-determination.
The End!

Good Luck!