Inter War Period and Rise of

Nazism and Fascism

 On the Eve of Great Depression
• The 1920s were called the “roaring twenties”.
• Throughout the war, capitalists had amassed huge profits selling
steel and arms.
• All this was reflected in high inflation throughout Europe in the
1920s.
• Germany was the worst affected with hyperinflation leading to
issuance of a new currency, the Rentenmark.
• However, Europe was on its way to reconstruction by late 1920s.
• Germany was well established as the leading manufacturer in
Europe in 1929.
 The Road to Great Depression
Domestic overproduction
• Huge profits and mechanization in the 1910s and 1920s → overproduction
• This became apparent as the 1930s were arriving.
• Huge stocks of goods → manufacturing activity decreased → huge layoffs →
demand decreased further → vicious cycle
Poor handling of the crisis
• The US President Hoover encouraged the companies not to lay off workers.
• However, as the crisis worsened, companies had no choice.
• The state governments did not have enough money for public works.
• USA government erected new trade barriers which made agricultural produce
costly.
• European countries retaliated by erecting their own barriers.
Falling exports
• American economic boom was protected by huge protectionist barriers.
• Foreign governments could not make money from the huge demand in American
markets.
• This deterred the foreign governments to encourage American imports.
• Many European countries erected tariffs against American imports.
Speculation
• A great speculation rush gathered momentum in New York in 1929.
• The stock market came to be valued way above the market value.
• Banks also speculated in shares in absence of proper regulation.
• With the very first signs of stress → huge rush to sell shares → stock market
crashed suddenly.
 The consumerism in the USA during and after the war led to an
economic boom.

Buying of shares in the New York stock exchange of Wall Street had
slowed down in September, 1929.

This led to rumours that the boom might be over and people rushed
to sell their shares.

29 October, 1929 - Black Tuesday - catastrophic fall in price of listed

stocks by as much as $30 billion - also known as the Wall Street
Crash
 Immediate Effect: The Great Depression
• People lost huge investments as the stock market crashed.
• Financial difficulties spread throughout the USA.
• This led to a bank run which led to failure of thousands of banks.
• Demand for goods fell → factories closed down and unemployment rose
suddenly
• The crisis spread throughout the world as the USA was already the world’s
largest economy and integrated with the rest of the world.

Prospects of quick economic Dictators like Hitler rose in

recovery in Europe were lost Europe with populist agenda
It was the Second World War itself that would put an end to the
Depression.
 Rise of Fascism and Nazism
Italy
Disappointments at Italy’s gains in World War I
• Italy had been promised Trentine from Austria, some Aegean islands
and a protectorate over Albania, etc.
• Italy made valiant efforts → lost 7,00,000 men in the war.
• However, it was not given most of the promised lands.
Economic effects of the War
• Heavy wartime borrowing from the USA → was to be repaid now
• Value of the Lira depreciated steeply → cost of living increased
• Massive unemployment spread through Italy in the 1920s.
Contempt for Parliamentary System
• After the war - universal male suffrage and proportional
representation were introduced in Italy
• Soon, there was multiplicity of parties.
• No government could achieve a majority → successive short-lived
coalition governments → policy paralysis
Waves of strikes between 1919-20
• Italy embraced rapid industrialization after 1870 → strong socialist
parties and trade unions formed
• Strikes often became violent with rioting and looting
• Factory councils reminiscent of Russian Soviets were appearing
slowly.
• Prestige of government sank as private property came under threat.
The Charisma of Mussolini
• He promised a stable and strong government.
• He embraced an anti-socialist agenda and guaranteed law and
order.
• Thus, he received support from wealthy businessmen and the
middle class.
• The Pope also supported him when he made conciliatory speeches.
• The King also supported him when he dropped his Republican
agenda.
• Benito Mussolini’s founded the National Fascist Party of Italy or the
Fascist Party was founded in 1921.
• Its symbol was the “fasces”, a bundle of rods with a projecting axe
blade - a symbol of authority in Ancient Rome.
• The party had a strong nationalist and corporatist agenda, with aim
of promoting Italian greatness and expanding Italian boundaries.
Fasces
 Seizing Power
The Socialists called a nationwide
general strike in the Summer of
1922.. The current government had
The Attempted General Strike of to resign due to lack of confidence.
The March on Rome, October 1922
Summer, 1922 The Fascists warned the government
to stop it. As the government failed
→ the Fascists threatened a “March
to Rome” in October 1922

Poorly armed “Blackshirts” (the Prime Minister Luis Facta was also However, the King Victor Emmanuel
paramilitary wing of the Fascist Party) prepared to counter the III invited Mussolini to form a new
joined the March. demonstration. government.
• The King gave Mussolini special powers to deal with the crisis.
• Accerbo Law, 1923 gave the party with most seats a 2/3rd majority
automatically.
• The Fascists finally won a majority due to the Accerbo Law in 1924.
• Persistent opponents were now imprisoned or murdered.
• Mussolini made new changes to the constitution. The Prime Minister was now
only responsible to the King. The Prime Minister could now rule by decree, i.e.
laws could be discussed in Parliament.
• Electorate was reduced to 1/3rd of its size.
• In May 1945, he proclaimed himself the “Duce” of Italian Social Republic with
autocratic powers.
Dictator
Deutschlandn= “The people's land" Germany

1918: Germany moved

Public opinion shifted Revolution broke out and
towards defeat in the
against the government the King fled
First World War

Friedrich Ebert, leader of Friedrich Ebert won the

A new constitution was
the Social Democratic elections held in 1919
adopted in the city of
Party (SPD) became and became the first
Weimar
Chancellor President

It established a
The first German
Parliamentary system
Republic was proclaimed
with dual executive in the Rise of Nazism
with the democratic
form of the President and
Weimar Constitution
a Chancellor.
Treaty of Versailles
• Germany was forced to sign a humiliating treaty
in 1919.
• Thus, the government came to be permanently Weaknesses of the Parliamentary
associated with defeat and dishonour. system
• Proportional representation
• The nationalist parties made great use of this in
fragmented polity, leading to
their propaganda.
coalition governments and no
policy continuity.
Traditional lack of respect for democracy in • Political parties had no
Germany experience with democracy and
• The people and leaders had great admiration refused to compromise.
for the army and officer class. • Communist and nationalist
• The democrats were accused of having “stabbed parties had no faith in
in the back” the army during the World War I. democracy.
• This legend decreased respect and belief in
democracy.
 Kapp Putsch (March 1920)- The
Spartacist Uprising (January
right-wing parties tried to seize
1919) -Communists tried to seize
power when government tried to Ultimately, the workers called a
power, inspired by the Russian
ban private armies. Kapp was the general strike and government
Revolution. Government had to
leader of the group → occupied was able to regain control.
accept the help of Freikorps or
the Parliament (Reichstag) Army
the private armies.
did not do anything.

Hitler became the chairman of The Great Depression- Banks

Government failed to pay the
the German Workers’ Party which closed down, exports crashed,
army, police or other employees.
was renamed to the National factories were shuttered down
There was total chaos on the
Socialist Democratic Party or the and unemployment became
German streets.
Nazi Party in 1920. rampant.

Luftwaffe ---> Air Force

 Paramilitary Wing of Nazi Party Nazi Party
Offered decisive government, Created a “us versus them” Promised to overthrow the
national unity and full myth against the Marxists, Versailles Treaty and bring all
employment Jews, Freemasons, etc. Germans under the Reich

Nazi private army (the SA) was Striking contrast between the Fear of a communist revolution
an attractive employment for charismatic Nazi leadership
the youth and the Weimar leaders
Hitler’s own charismatic Use of latest means of
personality propaganda

• The more the economic situation deteriorated in Germany, the larger number of
seats the Nazis won.
• Elections of July 1932: Nazis became the single largest party in the Reichstag
• Elections of November 1932: As economic situation improved, Nazis lost 34
seats
• However, the President Hindenburg invited the Nazis to form government and
Hitler to become the Chancellor.
Der Fuhrer= The Leader
Road to Capturing Power
Lebastraum = Living Space
Reichstag Fire of March 1933
• A huge fire engulfed the Reichstag building in March 1933.
• Hitler accused the enemies of the nation, the communists and the Jews of
having started the fire. Linked Judaism with Boshevikism
• Polarized election took place in 1933 but Hitler could not win a majority.
• Alongside, the SA purged the opponents and state apparatus was used to
consolidate power.
• The Reichstag Fire was used to pass an emergency legislation.
• The Nazi armies surrounded the Kroll Opera House where the Reichstag was
meeting.
• The Parliament passed the Enabling Law which gave Hitler dictatorial powers.
Hitler and Czechoslovakia
 Prelude to the War
● Hitler demanded return of Danzig and a rail-
and-road link to East Prussia.

● Polish were cautious because this came

immediately after the destruction of
Czechoslovakia.

● Britain had already guaranteed help to Poland

in case of aggression.

● Thus, Poland stayed adamant even when the

British persuaded them to give some
concessions.
The Final Push

● Hitler had secured Russian neutrality already.

● The refusal of British and French help to Czechoslovakia → Britain might

not intervene in Poland

● Hitler’s demands were also quite reasonable as a huge German-speaking

population lived in Poland.

● Even as Britain restated her commitment to polish independence, Hitler

ignored it.

Night of 1st September, 1939 German forces launched attack

on Poland
Causes of the War
 Resentment over the Treaty of Versailles

● The aggressor states - Italy and Germany - both resented the

clauses of the treaty.

● Inspired extreme nationalism, which dictators could use to rally

support

● Created the problem of the minorities, which Hitler used to

attack Poland

● Inspired feelings of revenge - for example, German resentment

against France
Failure of the League of Nations
● This removed the curtain of collective security from European eyes.
● This meant that disarmament effort was doomed to fail.
● Absence of an international forum forced countries to appease the
aggressors.
The Global Economic Crisis
● It was directly responsible for the rise of populist dictatorships throughout
Europe.
● It led to division of the world into two camps - democrats vs dictators.
● The dichotomy of socialism and capitalism was also established by the
Economic Crisis.
● Economic desperation also forced to leaders to appease the aggressors.
 Course

The Allies The Axis Powers

● United Kingdom ● Germany

● France ● Italy
● United States of America ● Japan
(from 1941)
● USSR (from 1941)
 Phases
1. Opening moves (September 1939 - December 2. Axis offensive widens (1941 –
1940) summer, 1942)
•September 1939: Poland defeated •The conflict expands to the entire
•Phoney War world.
•April 1940: Occupation of Denmark and Norway •June, 1941: Invasion of the Soviet
•June 1940: Defeat of Holland, Belgium and Union
France •December, 1941: Japan attacks Pearl
•July-September 1940: Battle of Britain Harbour and the USA enters the War
•September 1940: Invasion of Egypt and Greece
3. Axis offensive checked (Summer 1942 – 1943) 4. Axis powers defeated
•June, 1942: Battle of Midway Island •Battle of Normandy (June, 1944)
•October, 1942: Battle of El Alamein •Surrender of Germany (May, 1945)
•September 1942 – February, 1943: Battle of •Surrender of Japan (August, 1945)
Stalingrad
Summary
 Summary

Himmler[SA(Assault Division of Nazi Party)]

Hitler Deputies Goering[SS]

Goebbels[Gestapo]
Summary
Summary