The Great Depression and the Rise of Dictators Ch.15 Sect.2

1. The Great Depression 1920’s – industrialized allied countries had great economic growth Less than 10 years later it would come to an end.

A. Causes of Depression Stock market – organization through which shares of stock in companies are bought and sold In the 1920’s many people invested their money in the stock market. The theory is to buy stock when its prices are low and sell when it is high. People borrowed money to buy stocks, but stock prices began to fall.

A. Causes of Depression Con’t The people that had borrowed money had to repay it. So many people went to the banks to get their money, that the money ran out. People didn’t have any money, they were bankrupt Stock Market Crash Great Depression starts all over the world as wages fall, banks close, business slowed or stopped, and people couldn’t find jobs. Many people didn’t have enough to buy food.

B. Governments and the Depression Government’s around the world tried to ease the depression by not importing goods – Franklin D. Roosevelt becomes U.S. President. Created the New Deal, which were programs to end The Depression. (1940’s) The gov’t gave money to the states and created jobs. Ex. Buildings, roads

2. The Rise of Dictators in Europe Life continued to be hard throughout the world because of The Depression. Dictator – an absolute or total ruler Powerful dictators seize control of Germany (Hitler) and Italy (Mussolini).

A. Italy Becomes a Dictatorship Fascism – a political movement that puts the needs of a nation above the needs of an individual; started by Mussolini; leader has total control Fascist feared communism, property is shared by everyone; gov’t controls all factors of production. Mussolini turns Italy into a police state, gov’t has total control over people and uses secret police to investigate and punish people.

B. Germany After WWI many Germans believed they should not have signed the Treaty of Versailles. Hitler promised to break the treaty, fix the economy, rebuild the military, and take back land. Nazis gained power and in 1933 Hitler became dictator, and established a police state. Jews lost their civil liberties. Hitler began rebuilding Germany’s military. Called his rule the Third Reich (Empire).

C. The Soviet Union Communists had promised wealth, but the people were still poor. 1920’s Russia changed its name to the Soviet Union. (Vladamir Lenin,Joseph Stalin) Took over all the land and forced people to work on large farms. Tried to industrialize but the people remained poor. Religious worship was forbidden. By 1939, over 5 million had been arrested.