Between the Wars
Italy
Italy was the first nation to become a dictatorship after
World War I. Many Italians were unhappy with the small
gains of land they received under the Treaty of Versailles.
They also disliked the way their government had handled the
country’s economic problems.
Led by Benito Mussolini, the Fascist party
quickly gained support among the Italian
people. The Fascist soon took steps to take
power. The Italian king gave in to pressure and
named Mussolini prime minister in 1922.
Mussolini then banned all political parties
except the Fascist party, set up a secret police,
and took over the Italian government.
Germany, or The Weimar Republic
The Weimar Republic was established at the end of World War I.
The republic was named after the city of Weimar, where a
national assembly convened to produce a new constitution after
the German Empire was abolished. The Weimar Republic was the
second “Reich” (or “Realm”), the first being the German Empire.
There were many problems facing the Weimar Republic:
•Paying the War debt.
•Unemployment and hyperinflation
•Angry unemployed former soldiers (remember, the Treaty of
Versailles only allowed Germany to have 100,000 soldiers)
•Loss of important regions (the Ruhr Valley) and their natural
resources (coal).
Most Germans had lost faith in their
government. Many complained bitterly
against the government for signing the
Treaty of Versailles. They felt the treaty
had turned Germany into a poor, weak
country.
Enter Adolf Hitler.
Hitler had fought in World War I. In
October of 1918, Hitler was partially
blinded in a mustard gas attack near
Ypres, Belgium. He was sent to the
military hospital, which is where he was
when the Armistice was signed.
In 1919, he joined the German Worker’s Party. The German
Workers’ Party consisted mainly of an executive committee,
which had 7 members. To bring in new members, Hitler
prepared invitations, but few people came.
Then, in October 1919, a meeting was held in a beer cellar in
Munich. Hitler was the second speaker. It was to be his first
time as a featured speaker. He astounded everyone with a
highly emotional, nearly hysterical manner of speech making.
After his speech, 300 marks were donated to the German
Workers’ Party.
In early 1920, Hitler took charge of the party propaganda, and he
recruited young men he knew in the army. In Munich, there were a
number of veterans who had fought in WWI, and were disgusted
with the terms of the Treaty of Versailles, and the democratic
republic. They felt the government was stabbing them in the back.
The German Workers’ Party platform was:
•to reject the Treaty of Versailles
•the demand of additional territories for
Germans
•citizenship was to be determined by race,
with no Jews to be considered German
•All income not earned by work was to be
confiscated
•a strong central government
At first the party had little influence, and few people joined.
In the Summer of 1920, Hitler then designed a symbol for this group,
the swastika in a white circle on a red background. Also, in 1920,
Hitler changed the name to include the term “National Socialist”, or
the Nazi party. By the end of 1920, there were about 3,000 members
of the Nazi party.
The Weimar Republic was the second “Reich” (or
“Realm”), the first being the German Empire. Yet,
when faced with the staggering amount of war
reparations that began in 1922, the government
made a fatal mistake.
Since Germany needed more money, it printed more
money. More money meant that the value of the
Mark dropped, until, in 1924, it took 4.2 Million
Marks to equal in value to $1.
To solve this hyperinflation, in 1924 a new currency
was created, the Rentenmark, named after the
Renten Bank which created and issued the new
currency. Germany’s economy stabilized.
In addition, in 1924, a payment plan was worked
out. The United States loaned money to Germany
in order to help Germany pay the war reparations.
This also helped to stabilize Germany’s economy.
In November, 1923, the Nazi party had 55,000 followers
(The total population of Germany at this time was
approximately 65 million). Hitler and his followers
hatched a plot in which they would kidnap the leaders of
the Bavarian government (the Munich area) and force
these people at gunpoint, to accept Hitler as their leader.
However, this attempt failed, and Hitler was arrested for
treason. He was found guilty, with a sentence of 5 years.
He was, however, paroled in a very short time. While in
jail, Hitler wrote his book, “Mein Kampf” (My struggle),
which outlined Hitler’s political and racial ideas.
From 1923 – 1933, Germany’s
economy grew. Germany
became famous for its café
culture, jazz clubs and cabaret
shows. In addition, Germany
had a rising film and music
industry. One of the most
famous films to come out of
Germany at this time was
“Metropolis” (1927).
People were happy, and
confident in their government.
In May, 1926, Hitler had assumed the title of supreme
leader – “Fuhrer”, of the Nazi Party. The party was
experiencing slow growth, with Hitler being forbidden
to speak in public until 1927. He also faced the
possibility of being deported back to Austria (his
homeland). By May, 1928, the Nazi party did poorly
in the Reichstag (German parliament) election, and
only won 2.6% of the votes.
Notes:
The Rise of Hitler:
• Germans lost their faith in government, due to the terms
of the Treaty of Versailles
• In 1921, the German economy collapsed, when the
repayment terms became due
• The German Workers Party was created in 1920, in direct
response to the Treaty of Versailles
• Hitler created the flag, and renamed the party “National
Socialist”, or Nazi
• At first this party had little influence.
• By 1929, Germany’s economy had recovered, and was
booming.
Meanwhile, in
the United
States:
Just after The Great War,
Americans made decisions
to buy huge amounts of
goods. Factories increased
production to meet the
demand of buyers.
Overtime, however, demand fell. People could not afford to
keep buying more goods. Warehouses and stores soon
overflowed with unsold goods. Industries made more and more
products, thinking that someone would buy them. Government
policies made the problem worse. To protect American farms
and industries, the government put high taxes on goods
imported into the United States. This made it difficult for other
countries to sell their goods in the United States.
If other countries could not SELL their goods, then they could not
afford to BUY American goods.
The Great Depression Notes:
Events leading up to the Great Depression:
• Demand for products fell.
• Warehouses and stores overflowed with unsold goods.
• Industries continued to make more and more products.
• If other countries could not sell their products to the US,
they could not buy US products.
The Stock Market
As doubts about the strength of
the economy grew, many people
in the United States began to
invest in the stock market. They
bought and sold shares of stock in
the hope of making a quick profit.
Many people bought stocks on
CREDIT – meaning they did not
have the money to actually BUY
the stocks until after they SOLD
them – at a profit.
What do you think happened?
In October, 1929, some major stock market investors, worried about
the economy, began selling their stock.
Panic set in. Everyone wanted to sell stock, but few people wanted
to buy. Stock prices went way down, or crashed.
Brokers demanded the money that was owed them.
Many investors, because they bought stock in the anticipation that
the price would INCREASE, not DECREASE, could not pay back what
was owed. These investors lost all their money. Many brokers, who
sold the stock on credit, now could not pay their bills. They also lost
all their money.
Economic Problems Grew
Few people had money for goods or services. Warehouses and
stores were full BEFORE the stock market crash. Factories cut
back production, and laid off workers. More and more people
lost their jobs and worried about paying rent or making house
payments. Many people tried to withdraw their savings from
banks. Most banks could not pay back so many people so quickly.
Hundreds of banks closed. More people without jobs meant less
money to spend. Less money to spend meant more businesses
failed and more people lost their jobs.
THE GREAT DEPRESSION HAS BEGUN!
Notes:
Problems with the Stock Market:
• People invested in the stock market, using credit,
hoping to make a quick profit.
• Major investors sold stock, prices fell, panic set in, and
the stock market crashed.
• Stock market crashed on October 29, 1929.
Economic Problems Continued:
• More and more people lost their jobs.
• People withdrew savings from banks.
• The banks could not keep up with the demand, and
many failed.
The Great Depression
devastated the United
States in the 1930s,
leaving as much as 25
percent of the workforce
unemployed. People who
lost their jobs began
selling five-cent apples on
the streets of American
cities, providing a symbol
of the economic
hardships of the era.
Herbert Block, “The Philanthropist” 1930
The stock market crash ruined the economies of nations around
the world. Many Americans had invested large amounts of money
in Europe after The Great War. After the crash they could not
afford to keep their money invested overseas. The European
Economy, already weak, suffered even more from the loss of
American dollars.
European banks closed, and people who had deposited money
could not get it back. Factories shut down, putting millions out of
work. In Asia, Africa, and South America, the demand for raw
materials dropped. By the early 1930s, the world economy was a
mess. World trade and production were down, and
unemployment was the highest it had ever been.
The United States
Herbert Hoover had been elected
President in 1928, and was
inaugurated in 1929.
He tried to combat the depression
with many new programs.
However, in 1930, Congress passed
the Smoot-Hawley Tariff Act, which
"imposed an effective tax rate of
60% on more than 3,200 products
and materials imported into the
US." quadrupling previous tariff
rates.
American exports and imports
plunged because of this Act. The
Depression worsened.
There were other problems in the US. Combined with fewer
factory jobs, farmers were also hit hard. During the 1930’s, a series
of catastrophic dust storms hit American and Canadian prairie
lands. These dust storms were caused by decades of inappropriate
farming techniques. The fertile soil of the Great Plains had been
exposed through the removal of grass during planting. This,
combined with a drought, caused the soil to dry out, become dust,
and blow away. This caused many Americans to leave their farms
in Texas, Arkansas, Oklahoma and the surrounding plains, and
migrate west, looking for work.
People left their farms, and farming towns died. Depression and
drought struck towns as well as farms. Laborers, clerks, building
tradesmen migrated as well as farm people.
Caddo,
Oklahoma
1938
People sold their furnishing and household items just to be able to
afford rent.
(pictures
from 1933)
And, because they couldn’t afford rent, they couldn’t afford to eat.
Breadline under Brooklyn Bridge, New York (1930-1934?)
And if they couldn’t afford rent, where did they live?
Depression refugee family from Tulsa, Oklahoma.
They arrived in California June 1936. The family
consisted of a mother and three teenaged children;
no father. "Anybody as wants to work can get by. But
if a person loses their faith in the soil like so many of
them back there in Oklahoma, then there ain't no
hope for them. We're making it all right here, all but
for the schooling, 'cause that boy of mine, he wants
to go to the University".
Dorothea Lange, photographer.
1936
Notes:
Other Problems in the US:
• Dust storms occurred in Oklahoma, Texas, Kansas,
Arkansas, due to drought and improper farming
techniques.
• Many people moved from this area to California to look
for work, stressing the oversaturated job market.
The New Deal
In November, 1932, Herbert
Hoover was not re-elected as
President of the United States.
Many people felt that he had not
done enough to relieve the
Depression. His opponent,
Franklin Delano Roosevelt was
elected instead.
The New Deal was the name
President Roosevelt gave to the
series of programs he created
between 1933 – 1938 with the
goal of relief, recovery and reform
of the US economy.
• Relief: This was the immediate effort to help one-third
of the population that was the hardest hit by the
depression.
• Recovery: This was the effort in numerous programs to
restore the economy to normal health.
• Reform: This was based on the assumption that the
depression was caused by the inherent instability of the
market and that government intervention was necessary.
The First Hundred Days
By March 4, 1933, all banks in the country were closed by
their governors, and Roosevelt kept them all closed until he
could pass new legislation. On March 9, Roosevelt sent to
Congress the Emergency Banking Act. It provided for a
system of reopening sound banks under Treasury
supervision, with federal loans available if needed. 3/4 of
the banks in the Federal Reserve System reopened, billions of
dollars flowed back into these banks, and the banking system
was stabilized.
By April, 1933, all was normal.
To avoid future banking problems, Congress created the Federal
Deposit Insurance Corporation in June, which insured deposits up
to $5,000.
The establishment of the FDIC virtually ended the runs on the
banks.
The Federal Deposit Insurance Corporation is in effect today. The
FDIC was just one of the programs put into place through the New
Deal.
Dozens of “alphabet agencies” were created as a result of the New
Deal.
CCC – Civilian Conservation Corps
The Civilian Conservation Corps was a
work relief program for young men
from unemployed families. This
program was established on March
19, 1933. The CCC became one of the
most popular New Deal programs
among the general public and it
operated in every state. The CCC was
disbanded in 1942.
The CCC was a work and relief
program that sent young, unemployed
men to work on conservation projects
in rural areas.
The pay was about $1 per day. The CCC
operated numerous conservation projects,
including the prevention of soil erosion. The
CCC constructed many buildings and trails in
city parks, state parks, and national parks that
are still used today. Other projects:
•installation of telephone and power lines
•construction of logging and fire roads
•fence construction
•tree-planting
•beekeeping
•archaeological excavation
•furniture manufacture
•wildfire suppression crews
Tennessee Valley Authority – TVA
The Tennessee Valley Authority provided electricity, flood
control and land conservation by building dams. This agency
was established in 1933, and still operates today.
Fort Loudon Dam, TN
1942
Federal Emergency Relief Administration
The Federal Emergency Relief’s main goal was to provide direct relief to
the needy, and to alleviate adult unemployment. In order to achieve
this goal, FERA provided state assistance for the unemployed and their
families.
FERA provided work for over 20 million people and developed facilities
on public lands across the country. Faced with continued high
unemployment, FERA was terminated in 1935 and its work was taken
over by the Works Progress Administration.
Subsistence Garden in
Meade County, Kansas
Public Works Administration
The Public Works Administration was an agency that made contracts
with private firms for construction of public works, as a means to
provide employment and stabilize the economy.
The PWA funded and administered the construction of more than
34,000 projects, including:
•airports
•large electricity-generating dams
•major warships for the Navy
•bridges
•70% of the new schools built between 1933-1939.
•1/3 of the hospitals built between 1933 -1939.
•Most famous PWA project is the Lincoln Tunnel in NYC
The PWA had its own administrative staff, but all construction work was
done by private contractors. The PWA spent over $6 billion, and helped
push industry back toward pre-Depression levels. The PWA ended in
1939.
Works Progress Administration
The Works Progress Administration was established on May 6,
1935. It continued and extended the FERA relief programs. It built
public buildings, roads, and also operated a large arts project. It
was the largest employer in the country. Only unemployed people
on relief were eligible for most jobs. Workers could not work more
than 30 hours per week. In 1940, the WPA changed policy and
began vocational educational training of the unemployed to make
them available for factory jobs.
Congress shut down the WPA in late 1943.
Federal Housing Authority
The Federal Housing Authority was established in 1934, and still
exists today. It insures loans on home repair or construction, or
purchase. The FHA created a stable mortgage market and provided
funds needed to construct necessary low income housing.
In 1965, the FHA became part of the Department of Housing and
Urban Development’s (HUD) Office of Housing, allowing even
more Americans access to home ownership.
Social Security
Social Security is a social insurance or benefit program. It
was begun in 1935, and still exists today.
It is funded through payroll taxes, in that a small portion of
everyone’s paycheck is deducted to fund Social Security. In
1935, the term Social Security covered unemployment
insurance as well as benefits for the elderly, the disabled,
and orphans. Social Security still exists today, provides the
same benefits, except for unemployment insurance.
Notes:
Recovery in the US:
• Franklin Delano Roosevelt was elected President in 1932
• He established plans, the New Deal, for recovery
New Deal Programs Still in Existence Today:
• FDIC: Federal Deposit Insurance Corporation – Insures bank
deposits.
• SS: Social Security – Provides benefits for the elderly,
disabled and orphans.
The Great Depression – Worldwide
The stock market crash ruined the economies of nations around
the world. Many Americans had invested large amounts of money
in Europe after The Great War. After the crash they could not
afford to keep their money invested overseas. The European
Economy, already weak, suffered even more from the loss of
American dollars.
European banks closed, and people who had deposited money
could not get it back. Factories shut down, putting millions out of
work. In Asia, Africa, and South America, the demand for raw
materials dropped. By the early 1930s, the world economy was a
mess. World trade and production were down, and unemployment
was the highest it had ever been.
Soviet Union
The worldwide depression that began in 1929 did not affect the
Soviet Union. After Lenin died in 1924, there was a struggle for
power in the Soviet Union which lasted until 1928. In that year,
Joseph Stalin took control of the government. He also controlled the
Communist Party, which was the only political party allowed in the
country. The Soviet Union was behind the rest of the world in
Industrialization. Stalin wanted the Soviet Union to industrialize as
quickly as possible. So he set up a series of 5 year plans. The major
goal was to build up the manufacture of basic materials and
machines. Under these plans, steel mills, power plants, oil refineries,
and chemical plants were built and kept under government control.
Workers were paid according to how much they produced.
Factory managers had to turn out a certain quantity of
goods. Workers labored long hours for low wages.
Consumer goods, such as clothing and household goods,
were poorly made and hard to find. Another goal was
collectivization, or turning small farms into large ones
controlled by the government. On a collective, farmers were
paid according to the number of days they worked.
Collectivization allowed farmers to share tractors and other
farm equipment. The government bought their crops at
fixed prices and sold them abroad to buy machinery for
factories.
Germany:
Although the German economy had stabilized, and the
rapid inflation was no longer occurring, the US stock
market crash was disastrous for the German economy.
American investors pulled out of European banks, which
caused the European banks to fail. In addition, American
investors also pulled out of the European stock market,
which caused it to also crash.
In Germany, unemployment doubled
from 3 million to 6 million (or an
unemployment rate of 33%) by 1932.
Also, in 1932, Germany’s government
was on the brink of collapse. The
economy was in crisis.
Stop here to complete The Depression choice packet
In the 1932 Reichstag elections, the Nazi Party won
37% of the seats, thanks to a massive propaganda
campaign. More and more people began listening
to Hitler’s emotional speeches.
Many people, frustrated with the
government’s inability to help them,
liked Hitler’s idea that the Germans
were a “super race”. Businesses liked
Hitler’s promises to rebuild Germany’s
ruined economy.
By March, 1933, The Nazi party had
more elected representatives in the
Reichstag (the German legislature)
than any other party. Hitler forced
Germany’s president to make him
Chancellor. Before long, he did away
with the German republic and set
himself up as dictator, or as “Der
Fuhrer”.
Once Hitler was in power, he did away with all political parties except
the Nazis. Under Hitler, the State, not the individual, was supreme.
Many people agreed with Hitler’s views. Bureaucrats, industrialists,
even intellectual and literary figures, were coming out in open
support of Hitler. Many others disagreed and left the country. Among
those who left were Albert Einstein.
Hitler burned books about democracy. He took over the courts and
set up a secret police, the Gestapo (the Geheime Staatspolizei or
“secret state police”). He took over the radio, the press, and schools.
He abolished trade unions.
How did he get people to go along with his ideas?
Notes:
The Rise of Hitler:
• German unemployment went from about 16% to 33%
• In 1933, Hitler made the German president appoint him as
Chancellor
• Hitler did away with the German republic, became dictator,
and established a secret police
• View Life Under Hitler video:
http://safeshare.tv/w/pFvNFELZMY
In your notebook, create a T-chart. Label one
side “New Deal”, and list the programs that
FDR created to get the United States’ economy
working again. On the other side, label
“Hitler’s Programs”, and list the programs
Hitler created to get the German economy
working.
Is there a difference in the programs?
Is there a reason why many people in
Germany liked Hitler? Is there a reason why
many people overlooked his racial views?