Western Europe between the Wars (while Stalin rules the USSR!)

Post WWI Germany – The Weimar Republic Problems: 1. Hostility to new government –No say at Paris Peace Conference –Versailles Treaty seen by many as “diktat” (dictated peace) –Weimar Government set up by Versailles Treaty – many resented it – seemed illegitimate

2. Inflation War Guilt -  reparations - Government prints $ to cover the expense (no backing -  decreased value – think Rome!) –1918 – 1 loaf of bread = 1 mark –1922 – 1 loaf of bread = 160 marks –1923 – 1 loaf of bread = 200 billion marks (yes, its true!) –wheelbarrows of money used to buy food *** Effective 1924 DAWES plan (US) helps to slow inflation – stabilize economy – by 1929 economy is in recovery

Optimism 1925 – Locarno Agreements (in Switzerland) - Briand (FR) and Stresemann (GR) vow lasting peace between FR & GR – GR – will respect the borders of Belgium (think Maginot Line) and FR – “Spirit of Locarno” is optimistic! 1928 – Kellogg-Briand Pact – (US / FR) pledge by all countries involved to “renounce war as an instrument of foreign policy” – however no means to enforce this And then….

1929 – Stock market Crashes Tuesday October 29th – US -  “Great Depression” World wide --  changes

UK rise of Socialism -Labour Party gains more seats in Britain -Independence to dominions -S. Ireland  Irish Free State

USA No foreign entanglements – isolationism War caused industrialization  prosperous economy Speculation in Stock Market “Buying on Margin” (Credit) “Business of America is Business” Return to Normalcy (Harding, Coolidge, Hoover) Roaring 20’s

Oct 1929 Stock prices tumble Loans called in  failure of businesses (bankruptcy) and loss of homes Bank runs 13 mil. (1 out of 4) lose jobs Then President Hoover (laissez-faire) believes market will adjust itself in time – govt. should not interfere

Franklin Delano Roosevelt 1932 Promises “New Deal” for Americans (mild socialist reforms  government regulation of industry and redistribution of wealth) 1.govt. will regulate banks & stock market (FDIC) 2.Jobs – public works projects – roads, dams, bridges, parks, - WPA, CCC 3.Social Security & Welfare Compared to rising dictators by Hoover & supporters

France 50% of men 18 – 32 killed Countryside devastated Govt. has little $ to rebuild Ideas of a “planned economy” take hold 1936 – “the Popular Front” – coalition government of communists & socialists– preserves democracy Govt. regulation of industry & taxes / welfare

Maginot Line 200 miles of concrete bunkers / trenches along German border Luxembourg & Belgian border is clear

Socialist Governments take over in DEN, SWE, NOR All countries effected by 1929 crash  World wide depression Leads to…..

Rise of Fascism fas·cism a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism Example: Mussolini’s Government & Hitler’s Government