Years Between the Wars 1919-1939 Main Ideas: 1) Economic problems can change society’s political views. 2) In times of trouble, people are more attracted.

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Presentation transcript:

Years Between the Wars Main Ideas: 1) Economic problems can change society’s political views. 2) In times of trouble, people are more attracted to extreme political views.

Problems for Germany The Treaty of Versailles (1919) ended WWI by ruining Germany: 1) lost 1/3 of land 2) limited armed forces 3) had to pay $132 billion (reparations for war) 4) War Guilt clause Germany’s new democratic gov’t, the Weimar Republic, had problems: 1)Germans not comfortable with democracy yet 2)Blamed for signing the hated Treaty of Versailles

Inflation and Reparations Inflation: a sharp rise in the cost of goods 1)In WWI, Germany over-printed paper money (the “Mark”) 2)Germany lost WWI, the Mark lost its value. 3) After WWI, Germany over-printed the Mark (reparations to Britain and France). 4) By 1923, Inflation out of control (cost 200 billion Marks for 1 loaf of bread)

INFLATION=diluting the $$$ supply Paper $$$ (Deutschmark) backed by gold (50 marks=1 oz. gold) Weimar gov’t printed more Deutschmarks to pay reparations to Allies Now takes more Deutschmarks to get 1 oz. of gold (value of deutchmark is diluted)

USA Helps Out After WWI, USA richer than before the war! Dawes Plan (1924): US banks loan Germany $200 million Effects: 1)Inflation went away 2)US companies invested in Germany 3)By 1929, German factories producing as much as before WWI

Peace Treaties Washington Naval Conference(1921): U.S., Britain, Japan, France, Italy 1)Disarmament: reducing the amount of naval weapons each country had. 2)All countries promised to stop constructing new battleships. 3)U.S. and Britain got to keep their ships, other countries forced to keep fewer ships Kellogg-Briand Pact (1928): USA, France, 14 other nations “No more war” promise BOTH TREATIES: League of Nations had no way to enforce them!!!

THE CRASH 1929

The Great Depression 1929 Stock Market Crash caused economic problems Banks: lost 9 million people’s life savings! 25% of US workers lost jobs The Great Depression began (Banks & businesses closed+ massive unemployment)

Dealing with the Depression: DEMOCRACIES France: Communists joined in a coalition government with other parties, passed reforms for workers Britain: elected coalition government, passed reforms to help industrial production Scandinavian Countries: Raised taxes to pay for programs to help those in need USA: FDR created government programs to create jobs & fix problems with U.S. economy

FASCISM Italy: Communists gained popularity during Depression Benito Mussolini: led a “March on Rome” to claim leadership of Italy, vowed to prevent Communist revolution Germany: Weimar Republic government blamed for economic problems, no clear leadership (too many political parties) Adolf Hitler: Nazi Party elected to protect against Communist revolution