Transcript US Recovery

Chapter 15
Years of Crisis, 1919-1939
Postwar Uncertainty
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Will reason really prevail?
Question traditional beliefs
New science and technology
Expanded rights
New ideas
Albert Einstein
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German-born physicist
Revolutionized theory of light
Light is constant
Space and time are not
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Change approaching speed of light
Known as relative motion
Theory of relativity
Albert Einstein
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More uncertainty
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Surely time is constant?
Even Newton was wrong
Absolute laws overthrown
Spreads beyond science
Sigmund Freud
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Austrian physician
Treats psychological problems
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Starts with hypnosis
Anna O
“Talking Cure”
Human mind is irrational
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Unconscious
Sigmund Freud
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Unconscious control drives
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Especially pleasure-seeking
Conscious mind unaware
Weakens faith in reason
Hugely influential by 1920s
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Has tailed off
Literature in the 1920s
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Affected by World War I
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Reason? Progress?
Sense of disillusionment
Fears about the future
Religious doubt
Lots of great stuff
Literature in the 1920s
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Franz Kafka
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The Trial and The Castle
Inescapable situations
Hopelessness
People turn into cockroaches
Hugely popular
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Reflects post-war climate
James Joyce
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Irish novelist
Influenced by Freud
Stream-of-consciousness
Ulysses
Existentialism
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Insert picture of Sartre here
Existentialism
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Philosophers search for meaning
Many turn to existentialism
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No universal meaning
Made by ourselves
Choices and actions
No religion
Section 2
A Worldwide Depression
Review – 1920s
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What were two major changes in science?
What is existentialism?
What were two new artistic movements?
How did women’s roles change?
What two media came to dominate popular
entertainment?
Cinderella Man (2005)
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Great Depression era
Boxing!
Based on true story
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Lots of horrible stuff
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James J. Braddock
But ultimately uplifting
3 Oscar nominations
Section Preview
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Europe economies rebuilding
Japan and U.S. prospering
U.S. providing loans
Great American confidence
Booming stock market
Trouble ahead
Postwar Europe
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Europe practically bankrupt
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$338 billion
Land devastation
Declines in world affairs
Still lots of tension
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Why?
Unstable New Democracies
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Last absolute rules gone by 1918
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What happened in Russia?
Most European nations democratic
Citizens have little experience
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Representative government?!?!
Kings in Germany and A-H
Unstable New Democracies
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Parliamentary troubles elsewhere
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France and Italy
Political infighting
Dozen or more parties
One party can’t win support
Coalition governments
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Temporary alliance of parties
How long do these last?
Unstable New Democracies
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Frequent changes = instability
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Weak leadership
No long-term planning
Worse in crises
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Mass panic
Sacrifice freedoms
Authoritarian leaders rise
Weimar Republic
Weimar Republic
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1919 – new German government
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Democratic!
National assembly meets in Weimar
Doomed from start
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No democratic tradition
Many parties
Blamed for WWI defeat
Hyperinflation
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Many economic problems
Reparations
Minimal wartime taxes
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Unlike Britain and France
They printed more money
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Terrible idea. Just terrible.
Hyperinflation
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Mark plummets in value
Severe inflation
Cost of bread skyrockets
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1918 – less than 1 mark
1923 – 200 billion marks
Is new government working?
Hyperinflation
Economic Stability
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Bailed out from outside
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Charles Dawes
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International committee
U.S. banker
Dawes Plan
How to handle reparations, inflation?
Dawes Plan
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$200 million loan from U.S. banks
Stabilize currency
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American dollar more valuable
Strengthen economy
More realistic reparations payments
Dawes Plan
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Put into effect in 1924
It works
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Slows inflation
Attracts U.S. loans, investments
1929 – producing at pre-war levels
This sounds like who?
Lasting Peace?
Lasting Peace?
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Gustav Stresemann – Germany
Aristide Briand – France
1925 – meet in Switzerland
Sign a treaty
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Never make war with each other
Germany respects French, Belgian borders
Admitted to League of Nations
Lasting Peace?
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1928 – momentum builds
Kellogg-Briand Peace Pact
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Nearly every country signs
Even Soviet Union!
Ambitious goal
“To renounce war as an instrument of national
policy.”
Lasting Peace?
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How to enforce?
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No League of Nations military
U.S. refuses to join
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Why is this a problem?
But a promising start
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At least they’re talking
Review
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What were some problems with the transition
to democracy in Europe?
How did inflation affect the German
economy?
What was the Weimar Republic? Dawes
Plan?
How did Germany and France attempt to
make peace? Who else joined in?
Road to Perdition
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Crime and revenge
Based on graphic novel
Tom Hanks as bad guy
6 Oscar nominations
A downer
Directed by Sam Mendes
Financial Collapse
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U.S. carrying the world
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Great stock market
Foreign investment
International relations
If it collapses, the world follows
What happens?
Flawed U.S. Economy
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Richest 5% - 33% of wealth
60% earn less than $2,000
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Too poor to buy goods
Orders cut back
Factories fire workers
The spiral begins
Flawed U.S. Economy
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Uneven distribution of wealth
Overproduction
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Business and agriculture
Decreased buying
But increased production
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50% of world’s industrial goods
Flawed U.S. Economy
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Farmers can’t make profit
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Danger signs obvious
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Loans default
Go out of business
Many provide warnings
Don’t gamble in stock market
Widely ignored advice
The Stock Market Crashes
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Wall St. – world’s financial capital
New York Stock Exchange (NYSE)
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Investors optimistic
Stock prices soar
Middle class buys on margin
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Small down payment
Borrow the rest
The Stock Market Crashes
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If prices rise, great
If they fall, catastrophe
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No money to pay banks
September 1929 – panic sets in
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Prices unnaturally high
Begin selling off
The Stock Market Crashes
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Thursday, Oct. 24 – uh oh
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Everyone wants to sell
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Gradual lowering snowballs
Panic sets in
Who wants to buy?
October 29 – new low
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16 million stocks sold
And now we have a…?
Review
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What were some root causes of the stock
market crash?
What are coalition governments? Do they
tend to work? (Hint: no)
What was the Weimar Republic?
What two countries attempted a “lasting
peace”?
Tell me 3 developments in science,
entertainment, and/or the arts.
Review
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Three traits of Fascism?
Mussolini. Hitler. Go.
How does Nazism relate to Fascism?
Escape from Tomorrow (2013)
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Filmed in Disney World
Without permission
iPhones, hidden cameras
Customers filmed w/o consent
Horror/thriller/drama
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Brainwashing?
Interested in watching in class?
The Great Depression
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People can’t pay on margin
Banks can’t call in loans
Stocks worthless
Unemployment rises
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Production drops
Wages drop
Prices drop
This is the Great Depression
The Great Depression
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Many other factors involved
Crash simply accelerates process
1932 – 50% production
Many businesses close
Banks fail
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9 million lose savings
1933 – 25% unemployment
A Global Depression
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Reverberates around world
Bankers demand repayment
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U.S. sets high tariffs
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Withdraw money from Europe
Buy American goods
Backfires catastrophically
Other nations raise tariffs
World trade drops 65%
Effects Throughout the World
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Germany, A-H in trouble
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1931 – Austria’s main bank fails
Asia – value of exports decline 50%
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Depend on loans, investments
U.S. troubles = Europe troubles
1929-1931
Prices collapse in Latin America
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No American demand for crops
Britain
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Britain devastated
National Government elected
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Multiparty coalition
High tariffs and taxes
Regulated currency
Low interest rates
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Encourage growth
Britain
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It works eventually
Slow, steady recovery
Unemployment cut in half
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1937
Production above 1929 levels
Avoids political extremes
Preserves democracy
France
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More self-sufficient
Heavily agricultural
Less dependent on foreign trade
But things are still bad
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1 million unemployed in 1935
Contributes to political instability
France
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Coalition governments form, fail
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Antidemocratic forces forming
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5 in 1933
France and abroad
1936 – large coalition
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Moderates, socialists, Communists
France
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Popular Front
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There are wages gains
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Series of reforms
Designed to help workers
But also price gains
Unemployment still high
But democracy prevails!
Socialist Governments Find
Solutions
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Scandanavian countries succeed
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Sweden
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“Cooperative community action”
Public works projects
Keeps people employed
Raise pensions for elderly
Increased unemployment insurance
Other welfare benefits
Socialist Governments Find
Solutions
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How to pay for these?
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Tax citizens
Like Britain and France…
Democracy prevails!
U.S. Recovery
U.S. Recovery
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FDR’s confidence appeals to voters
Famous quote:
“let me assert my firm belief that the only
thing we have to fear is fear itself”
Review
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France weathered the Depression better than
Britain because they were more……?
What effect did the U.S. tariff have on the
world economy?
Britain created a multiparty coalition known
as the….? What did it do?
The Popular Front was a coalition in _______
made up of which 3 groups?
In economics, wage gains can be offset
by…?
Upstream Color (2013)
Director’s second film
 He does everything
 Hard to explain plot
 Limited dialogue
 Possibly the best movie ever
 On DVD in May
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U.S. Recovery
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New Deal initiatives
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Large-scale government reforms
Public works projects
Provide jobs
Loans to businesses
Government spending
Tighter regulations
Reform business and stock market
U.S. Recovery
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Reforms entire economic system
Roosevelt succeeds as leader
U.S. keeps faith in democracy
Faith in leader will be important
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More problems on horizon
Like what?
What I Didn’t Cover Thursday
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Dictators claiming power
Eastern Europe, too
First is in 1919
Admiral Miklos Horthy
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Hungary
Communists overthrown
Military and aristocratic support
What I Didn’t Cover Thursday
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Lots of countries follow
Marshal Jozef Pilsudski
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Poland – 1926
Constitutions suspended
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Yugoslavia
Bulgaria
Albania
Romania
What I Didn’t Cover Thursday
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1935 – ONE democracy in Eastern Europe
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Democracy survives in some nations
Britain, France, Scandinavia
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Czechoslovakia
Why?
Europe in 2 antagonistic groups
Tell me what they are.
Section 4
Aggressors Invade Nations
(Brilliant Title)
Section Preview
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Germany and Italy very angry
World conquest?
Democracies distracted
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By what?
Pins hope on League of Nations
Fascism in Japan?
Japan Seeks an Empire
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1920s – more democratic
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As in Europe
1922 – respect China’s borders
Signs Kellogg-Briand Pact
Weak Parliament
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Limits on leaders
Weak civilian control
Military reports to emperor
Militarists Take Over
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Prosperity helps maintain government
Great Depression hits 1929
People blame government
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Just like?
Military leaders gain support
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Win control shortly
Militarists Take Control
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Different from Fascists
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Restore control to military
Emperor symbol of power
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No new system
Who was it in Italy, Germany?
Hirohito 
Wins support of army
Militarists Take Control
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EXTREME nationalism
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Just like….?
Expansion will solve problems
Pacific empire
Conquer China
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Have we talked about this?
Militarists Take Control
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Why China?
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Rising population
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Raw materials
New markets
New land
Japan will invade……
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We talked about already
Japan Invades Manchuria
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Heavy Japanese investment
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Seize Manchuria
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Rich in iron and coal
Despite objections
Set up puppet government
Scientists arrive en masse
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Mines and factories
Japan Invades Manchuria
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What about League of Nations?
All major democracies in 1932
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Three greatest threats to peace
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Except…?
Who might they be?
League protests invasion
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Japan doesn’t care
Withdraws in 1931
Japan Invades China
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Escalates in 1937
Invade northern China
1,000,000 Japanese soldiers
Wins fairly easily
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Better trained and equipped
China’s army led by…?
Beijing, Nanjing fall quickly
Japan Invades China
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Massacre 10s of thousands
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Soldiers and civilians
Forced to retreat
New capital at Chonqing
Communists fight back
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Led by….?
European Aggressors
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League of Nations fails
Fascists are tickled pink
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We should invade too!
Mussolini dreams of an empire
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Jealous of Britain and France…
…who have empires in?
Mussolini Attacks Ethiopia
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Ethiopia is independent
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1 of 3 in Africa
Italy has attempted to conquer
Mussolini wants revenge
Massive invasion – 1935
Ethiopia outmatched
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Spears and swords vs. WWI technology
Mussolini Attacks Ethiopia
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Haile Selassie 
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Makes plea to League
They do nothing
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Emperor
Except condemn it. Yay.
Britain looks the other way
Italy cruises through Suez
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Hope to keep peace
Hitler Defies Versailles Treaty
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Long pledges to undo Versailles
Limits size of army
Hitler decides to violate this
League does nothing
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Except condemn. Yay.
Hitler convinced to do more
Hitler Defies Versailles Treaty
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Germany can’t enter zones
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30 miles around Rhine River
Buffer from France
Ha!
Big industrial area
Germany invades
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March 7, 1936
Hitler Defies Versailles Treaty
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French won’t risk war
British push appeasement
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Hitler would have backed down
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Giving into aggressors
Keep the peace
Britain, France missed opportunity
Turning point
Hitler Defies Versailles Treaty
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Strengthens Hitler’s power
Balance of power changes
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France, Belgium vulnerable
Hitler speeds up expansion
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Britain, France will stand by
How about the League?