1. Between the Wars: Depression & Authoritarianism – 1930s Chapter 29, part2 Pg. 690-703

2. Chronology & Themes  Economic depression created broad, global effects: political polarization greater state control of economy loss of confidence in democracy

3. Causes & Debacle of Economic Depression Stock market surge (based on loans) Post-War Inflation (illusion of prosperity) Competition & Rising Efficiency Over- production Reduced prices & profits Lost Confidence 1929 stock market crash Bank failures & dried up Investment Production slows Rising unemployment Economic collapse Shattered social & political ideals

5. Economic Responses in Europe & U.S.  W. Euro gov’ts responded ineffectively High tariffs & spending cuts further slow economies Inspired political polarization or overthrow  EX – Popular Front  Scandinavia, the exception, increased spending which created a welfare state  U.S. initially duplicated European mistakes, but New Deal takes Scandinavian approach by increasing spending & reforming banking Restored faith in gov, preventing extreme political change

6. Germany – Nazi Political Response  Depression & Treaty of Versailles make fascism a clear choice  Fascist, totalitarian gov, led by Hitler, quickly crafted Emphasized unity, strong leadership & military, economic planning Purged opponents w/ Gestapo Used personal hatred of Jews to create scapegoat for all Germany’s ills

7. Hitler speech before Reichstag (July 13, 1934) addressing his elimination of political opponents. "I gave the order to shoot those who were the ringleaders in this treason, and I further gave the order to burn down to the raw flesh the ulcers of this poisoning of the wells in our domestic life. …I am ready to undertake the responsibility at the bar of history for … the dearest thing that has been given us in this world--the German people and the German Reich!"

8. Europe – Fascism Spreads in Response  Hitler’s success lead to spread of fascists ideas in E. Europe Hungary, Romania  Spain experiences civil war as result of liberal feuds w/ authoritarian supporters Not fully fascist, but new authoritarian gov takes root advancing conservatism  W. Euro & U.S. respond weakly, fearing another war & distracted by depression

9. Latin America – Political Response  Depression & weak middle-class led to floundering liberalism → polarization  Authoritarianism w/ fascist sympathies succeeds Mexico: Corporatism – land reform, communal farms, state oil monopoly, appeal Brazil & Vargas: state action in economy, repressive w/o broad support Argentina & Peron: authoritarian w/ broad support by creating alliance of workers, industrialists & military

10. Japan – Militarism in Response  Depression sparks polarization w/ military exerting executive control  Imperialist ambitions intensified & expanded for economic protection Manchuria, occupation of China, & SE Asia? Promoted culture & economy in Korea  Economy crashed & responded quickly Increased gov spending reduced unemployment Assembly line & lifetime contracts → rapid economic growth & stability

11. Hideki Tojo Russian propaganda poster to join collective farm

12. Soviet Union - Stalinism  Buffered from depression effects by separate communist economy  Collectivization (collective farms) +’s: share expensive machines, control peasants, stable food supply, free labor for industry -’s: messy transition = famine, central planning w/ little incentives  Industrialization (major goal) Overwhelming success w/ state five-year plans, clear goals, new factories Replaced price competition w/ state allocation

13. Soviet Union - Stalinism  Industrialization met w/ incentives, welfare services, & problem-solving  Stalin exerted total control Controlled arts & sciences Used secret police & party purges ruthlessly  USSR gradually shift from inward focus to more active diplomacy Tension w/ Germany, but brief alliance to regain territory