Transcript So what do we do now that the war is over????

So what do we do now that the
war is over????
Many people assumed that Europe and the world
were about to enter a new era:
1.) international peace – (not sure how to
maintain it)
2.) economic growth – revival gave way to
inflation
3.) political democracy – Great Depression gave
rise to dictatorial regimes (Germany, Russia, Italy)
Uneasy Peace, Uncertain Security
Peace settlement at the end of WWI tried to fulfill
dreams of nationalism by creating new boundaries
and new states.
~ Border disputes poisoned relations in eastern Europe
for years
~ Germans vowed to revise the terms of the Treaty of
Versailles
Kellog-Briand Pact- a pact to help assure peace;
"renounce war"; 63 countries signed, which
produced a false sense of assurance
WWI Map
Post WWI Map
Weak League of Nations!!!!
League of Nations- set up to hold Countries
accountable and keep the peace.
Major Problems:
1.) United States did not join the League
because most Americans did not wish to be
involved in European affairs. (weakened the
League)
2.) League could only used economic sanctions
and not military force to stop agression.
Repairing the French
Between 1919 and 1924, desire for security led
the French government to demand strict
enforcement of the Treaty of Versailles.
Tough French policy toward Germany for
reparations- payments for damage they had
done in the war
33 billion US dollars payable as 2.5 billion per
year. (Made first payment in 1921
More Problems for Germans
1.) German government unable to pay debts.
France occupied Ruhr Valley (Germany’s
chief industrial and mining center.
2.) Workers went on strike and German government
paid their salaries by printing more paper money
(inflation)
1914 – 4.2 marks = 1 US dollar
1923 – 130 billion marks = 1 US dollar
How would Germany fix it?
The Dawes Plan: American banker suggested 3
things:
1.) Reduce German reparations.
2.) $200 million loan for German recovery
3.) Heavy American investment in Europeprosperity from 1924 – 1929.
The Great Depression
What makes a depression? (Recession vs.
Depression)
Recession- When your neighbor loses their job.
Depression- You and your neighbor lose jobs.
So what was the Great Depression?
The worst economic disaster of the 20th century!
How bad was the Great Depression?
Causes: 1) production of goods, 2)buying on margin
with the US Stock Market
Bank depositors lost confidence  bank runs
Loss of reserves  banks reduce loans and deposits
(causing money stock to fall)
Reduced spending  lay-offs (increased
unemployment), falling prices (deflation) and lower
output.
How bad Part 2
U.S. and Britain: 25% unemployment;
Germany: 40% unemployment
increase in government activity in economy
increased enthusiasm for the Marxist doctrine
(socialism)
desire to follow leaders with simple answers
(Hitler = Germany; Mussolini = Italy; Russia =
Stalin)
US Recovery
FDR and the New Deal
1.) Restored confidence in banking system (FDIC)
2.) Policy of government intervention designed to
improve the economy
3.) New Deal Programs- Social Security, WPA
(built bridges, roads, airports, and buildings),
and AAA (controlled production and found
better ways for growing crops)
France Recovery
France become strongest power in Europe
France’s more balanced economy helped them
not feel the depression until 1932
Popular Front started programs for workers similar
to FDR’s New Deal.
Collective Bargaining- workers rights to unions,
40-hour work week, two –week paid vacation
and a minimum wage
Britain Recovery
Labour Party failed to solve economic problem.
Conservative government – unemployment
benefit system that paid on need rather than
contribution levels.
Withdrawal from gold standard- reduced interest
rates from 6% to 1%- exports became
competitive in world markets (slow economic
recovery)
German Recovery
The Weimar Republic was created after WWI.
No outstanding leaders – Paul von Hindenburge
elected president at 77 (appointed Hitler later)
Middle class fall pushed people to hostile
political parties.
Fear of the Republic and the rise of extremist
parties (Hitler’s Nazi Germany)
So where does tomorrow take us?
1.) How Hitler rises to power in Germany?
2.) What Mussolini does in Italy that causes
them to join in the next world war?
3.) Don’t forget that dictator Stalin in Russia…
4.) Remember Japanese Imperialism? They
want to play next time too…