Transcript The Age of Anxiety

 GB and France disagree over Germany and the
Treaty of Versailles.
 French view: reparations the key to security.
 British view: Germany a valuable market.
 John Keynes and Economic Consequences of the
Peace
 Denounced the Treaty of Versailles
 Impoverished Germany would increase economic hardship
in all countries.
 Repercussions of Germany’s inability to pay
reparations.
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French and Belgians occupy the Rhur.
German passive resistance.
Runaway inflation.
Gustav Streseman and compromise.
 German leader requested France reconsider
reparations.
 France’s position very unpopular with GB, US, and
French citizens.
 1924: The Dawes Plan
 loans from the U. S. To
Germany to pay
reparations to France
and GB.
 Logic: enabled
France and GB to
repay their loans to
the U. S.
 The Radical Right
 The appearance of Adolf Hitler.
 Democracy in Germany
 Thru 1929, parliamentary government and regular
elections.
 Divisions between left and right.
 Rightists: nationalists, monarchists.
 Leftists: Communists.
 Political conflict in France.
 Communists, socialists, moderates.
 Rebuilding of the north of France created a deficit
and inflation.
 Solution: spending cuts and tax increases.
 GB and unemployment.
 Subsidy programs portend the welfare state to
come.
 Rise of the Labour Party.
 Ramsay MacDonald.
 American stock
market crash.
 “Real” investment vs
market speculation.
 Buying “on margin.”
 Panic selling.
 Declines in
production.
 Lessened wealth led to
buying slowdown.
 Buying slowdown led to
production cuts.
 Production decreased.
 Production cuts led to
mass unemployment.
 Social and psychological
problems.
 Marriage postponement.
 Declining birthrates.
 Increases in suicides.
 FDR’s goal.
 Reform capitalism in order
to preserve it.
 Government intervention
in the economy.
 The National Recovery
Administration (NRA)
 Reduce competition, fix
prices and wages, and
sponsor public works
projects.
 NRA declared
unconstitutional
 Social security, etc…
 Old age pensions,
unemployment benefits,
collective bargaining.
 The failure of the New
Deal.
 Never did pull the U.S. Out
of depression.
 Balanced budget allure;
deficits too small to be
effective.
 Socialism.
 Cooperative social action.
 Deficit spending.
 To finance public works projects.
 Maintained production and employment.
 Req: high taxes and large bureaucracy.
 Scandinavian welfare socialism.
 A middle ground between capitalism and
communism or fascism.
 Britain’s concentration on its national market.
 Government instability in France.
 Succession of coalition governments.
 Rise of fascist organizations.
 Growing strength of communism.
 The Popular Front: alliance of Communists,
Socialists, and Radicals.
 Leon Blum