1. Western Democracies Stumble
Chapter 13
Section 2

2. Party Struggles in Britain
Labour party
Promotes gradual move toward socialism
Become stronger than Liberal party
Liberals
Traditionally middle-class bussinessmen
Begin supporting conservatives
Conservatives end up dominating the 1920s
Represent upper-class, professionals, and farmers

3. Party Struggles in Britain
1926 – General strike lasts 9 days and involves over 3 million people
Conservatives pass legislation limiting power of workers to strike

4. Irish Independence Easter Rising (1916)
Irish revolt against British rule
Quickly suppressed, but stirred support for Irish cause
Parliament fails to pass bill for Irish home rule (again) in 1919
Irish Republican Army (IRA) begin guerilla war
1922—Irish and British moderates reach agreement

5. Irish Independence Most of Ireland becomes Irish Free State
Northern counties remain under British control
Religious division
Britain is Protestant (Church of England)
Most of Ireland Catholic, except northern counties
IRA and others fight division

7. France
Many parties differ on many issues, especially on how to collect reparation money from Germany
Quickly changing coalitions create problems

8. United States
Fear of radicals and the Bolshevik Revolution set off “Red Scare” ( )
Immigrants flooded into America from war torn Eastern Europe
Congress passes laws limiting immigration from Europe and Asia

9. France Builds Maginot Line
Massive fortifications to prevent another German invasion
Strengthens military and seeks alliances with Soviet Union and others
Insists on strict enforcement of treaty to keep Germany (and German economy) weak

11. Britain Wanted to relax treaty
Feared weak Germany would make France and USSR too powerful

12. Peace Locarno treaties – settle disputed borders Kellog-Briand Pact
Germany joins League of Nations, later USSR (but not US)
Kellog-Briand Pact
Signed by almost every independent nation
Promised to “renounce war as an instrument of national policy.”
Disarmament
US, UK, France, Japan, and others agreed to limit size of navies (but not armies)
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13. Postwar Economics Britain and France owe U.S. huge war debts
Both rely on German reparations to pay debt to U.S.
U.S. Economy booms
Loans and investments back European recovery, especially in Germany

14. Great Depression Overproduction
Demand for raw material and food skyrocketed during war, fell after
Technology allowed factories to produce more, faster
As demand slowed, factories cut back on production and workers

15. Great Depression Prices on Stock Exchange at all-time high
Investors used “risky methods” to acquire stocks
Federal Reserve raised interest rates (1928 and 1929)

16. Great Depression In October 1929 the Stock Market crashed
Wiped out fortunes of many investors
1931 Federal reserve raised interest rates again with disastrous results
People bought and invested less
Businesses and banks closed
Created a spiral downward

17. Depression Spreads
U.S. banks stopped making loans abroad and demanded payment of foreign loans
Without U.S. investment money, Germany could not afford o pay reparations
Without German reparations, France and Britain could not pay loans
Created spiral downward

18. Depression Spreads
To protect economy against foreign competition, U.S. and others impose tariffs
U.S. imposes highest tariff in its history (Smoot-Hawley Tariff)
Other nations do the same
Foreign trade plummets around the world
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19. Democracies React Britain France
provides some unemployment benefits, but no decisive action
1 in 4 unemployed
France
Leftists unite under Leon Blum’s Popular Front
Passes some social legislation, but not enough
Strikes soon bring his government down

20. Democracies React U.S. Hoover Franklin D. Roosevelt
believes government should not interfere in private business
Franklin D. Roosevelt
Elected in 1932
Proposes New Deal – massive package of economic and social programs

21. Democracies React New Deal
New laws regulate stock market and protect bank deposits
Aid to farmers
Government programs create jobs
Social Security system provide pensions for elderly and others

22. Dust Bowl Hits especially hard in 1934 in the Plains
Destroyed crops, land, and equipment
Thousands lost land, moved to West Coast
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26. Loss of Faith in Democracy
Depression fertile ground for extremists promising radical solutions