Chapter 27.2

1. Chapter 27.2 The Great Depression

2. The US Economy in the 1920’s • Economic Growth • After WWI The US was an economic power but towards the end of the 20’s they face a major crash • During WWI The US supplied much of the world with food and supplies needed to fight • Growth was steady through the 1920’s • Industries started making more cars, radios, vacuums, washing machines and more home appliances • The American stock market was only growing and some traded for 400% • Many people flocked to buy stocks and even borrowed money to be able to invest in stocks • This only drove the prices higher

3. The US Economy in the 1920’s • Hidden Problems • The new wealth being created was not distributed evenly • Credit was very easy to attain which increased spending of money that people did not actually have • This allowed the US economy to grow • However by the end of the decade consumers reached their credit limit and could not buy as much as they previously were

4. The US Economy in the 1920’s • The Stock Market Crash • Spending had significantly decreased so stock investors feared the their stock would loose it’s value and they began to sell of their stocks • October 29 1929 known as Black Thursday investors sold off 16 million shares and people did not want to buy those shares so the stock market collapsed • Many investors had borrowed money to buy the stock and they had to sell their stocks at a loss to help repay their loans • Many banks had provided loans and now these people could not pay back their loans which devastated the banking industry and the American economy

5. The Depression Spreads • Following the stock market crash American economy took a severe downward dive and the economic downturn became known as The Great Depression and was caused by several factors • Industry Slows • Industry began to slow down before the stock market crashed but was worsened by the crash • Factories had to lay off workers • By 1933 1 in 4 workers were unemployed and faced poverty. This meant they could not buy food and goods for their families and this hurt the industry even more • Many people that had savings banks feared they would lose their money bc banks were struggling to stay in business so they withdrew their money causing banks to fail

6. The Depression Spreads • Government Response • US President Herbert Hoover believed the US should have limited involvement in the business affairs • Many of his advisors thought it was a normal cycle of the type of capitalist economy The US had and did not think the gov’t should get involved • Eventually Hoover got somewhat involved but not enough to really help

7. The Depression Spreads • Roosevelt Elected • 1932 FDR was elected as the next US President • FDR had the opposite view of Hoover and got the gov’t more involved in the lives of the Americans • And help start the program known as the New Deal • New Deal was aimed at helping the Great Depression • It used gov’t money to help jump start the US economy • It created many public work programs which created many jobs • Gave gov’t money for the welfare program • Created new regulations to help protect the Stock Market and the Banking system

8. The Depression Spreads • New Economic Theories • John Maynard Keynes was a British economist who believed economic downturn could be prevented by gov’ts spending money even if it meant having an unbalanced budget • He said that providing jobs would allow people to have an income and would allow them to spend money which would put money back into industry and the economy which would end the depression • This initially worked for the US economy but the Great Depression lingered throughout the 1930’s.

9. Worldwide Depression • Before the Crash • Before 1929 American was responsible for a majority of the rest of world’s imports and lending • The American Great Depression directly effected the rest of the world • Most European countries were still struggling because of the war • Many Allied Powers were in a lot of debt to the US • German economy was horrible. Their money became virtually valueless because of the large amount of money they had to pay after the war • GB had a very high unemployment • In 1927 Japan had to force their banks to shut down • The US Great Depression was just another economic turn for the worst for these other countries

10. Worldwide Depression • A Slowdown in Trade • 1930 President Hoover signed the Smoot-Hawley Tariff Act which placed high taxes on import goods to encourage Americans to buy American products • This led other countries around the world to place high taxes on any American good that was imported • The world trade almost stopped • This made many countries economies collapse because they depended on the money that came in from exporting goods

11. Worldwide Depression • Political Impact • The postwar era made many countries politically unstable • GB and France had the formation many new gov’ts in seek of someone who could help • In other countries extremist gained controlled with economies worsened • Germany- Nazi party • Italy- Mussolini • The wide spread misery made an ideal climate for the rise of powerful leaders who promised to restore their nation to glory

12. Chapter 27.4 Dictators In Europe

13. Mussolini’s Italy • Fascist Ideology • After WWI Benito Mussolini promoted new ideas of government and drastically changed Italy and it’s role in the world • Mussolini aka il Duce • 1919 he founded the National Fascist Party • Fascism- is an authoritarian form of gov’t that places the goof of the nation above all else, including individuals needs and rights. • Fascism is ruled by an aggressive dictator who is all powerful and makes all major decisons

14. Mussolini’s Italy • Mussolini’s Power • By 1922 Fascism was a growing in Italian politics • Mussolini wanted to take over and rule • In October he and his supports “marched on Rome” which convinced the King to step down and hand the gov’t over to Mussolini • Once in power Mussolini moved to est. a dictatorship he used threats of violence and his political skill to force people to follow him and kill his opposers

15. Mussolini’s Italy • Fascist Italy • He wanted control of everything • He tried to influence Italians thoughts, feelings, and behaviors • The attempt of the gov’t to control all aspects of life is called totalitarianism • He use propaganda to promote Italy’s greatness • He est festivals and holidays that reminded modern Italians of the proud Roman heritage

16. Mussolini’s Italy • The Invasion of Ethiopia • He wanted to make Italy a strong military power • He looked for the easiest target to take over and found Ethiopia • Ethiopia was between two Italian colonies and they had a very weak military… Ethiopia was easily taken over by Italy • Ethiopia looked to the League of Nations to help but no one was willing to enter into another war so little action was taken against Italy

17. Stalin’s Soviet Union • After Lenin died and after a struggle for power Joseph Stalin became the leader of the Soviet Union • Communism Under Stalin • Even though Marxist idea was communism is that the gov’t would slow fade away and there would be no gov’t at all Stalin took a very different approach • He turned the USSR (Union of Soviet Socialist Republics) into a totalitarian government • He believed it necessary to strength their communist state

18. Stalin’s Soviet Union • The Five-Year Plan • He wanted to modernize the USSR economy • 1928 he began his five year plan- each factory and mine had production goals set by the state • The govt makes decisions about the production of goods • It led to the increase of production output however the demands put on the workers were high

19. Stalin’s Soviet Union • Collectivization and Famine • He combined all the small gov’t owned farms to make a large mechanized farms in the hopes that it would produce more • Stalin tried to take back the land the Lenin had given to the peasants during his rule • Peasants resisted and Stalin responded violently • 1000’s were executed and many were sent to Siberia to work (where most of them died) • Ukraine (part of the USSR) also resisted collectivization and once they face a famine in 1932 Stalin refused to send aid or food and millions of Ukrainians starved to death

20. Stalin’s Soviet Union • Political Purge • By the mid 1930’s Stalin had absolute power • He still feared that people were plotting against him and he started the Great Purge • He attacked real and imagined opponents • Thousands of military leaders, communist leaders, and ordinary citizens were executed or sent to Siberia

21. Stalin’s Soviet Union • Totalitarian Rule • Stalin’s rule dominated Soviet life • Youth were encouraged to join the youth organization where they were taught the attitudes and beliefs that Soviets wanted them to have • Religion was discouraged • Pictures and statues were all over Russia • He renamed cities in his honor • He promoted his cult and forced his people to follow him through fear

22. Hitler’s Germany • After WWI Germany went through many changes and much like Italy and Russia a dictator rose to power.. Adolf Hitler • Postwar Germany • After WWI Germany formed a new gov’t the Weimar Republic • German did not like the Weimar Republic bc they blamed it for the humiliating Treaty of Versailles and economic problems • German economy saw economic disaster one right after the other

23. Hitler’s Germany • Hitler’s Early Career • Hitler was born in Austria in 1889 and served in the German army in WWI • After the war he became involved in an extremist group call the Nationalist Socialist Party of the Nazi Party • He soon rose within the party and wanted to take of the German government • In October 1923 he tried and failed and was put in prison for a short term where he wrote Mein Kampf- My Struggle which he wrote about his political opinions and the greatness of the German people and the Aryan race

24. Hitler’s Germany • Hitler Gains Power • After he got out of prison he still sought political power in German • Because of the Great Depression German was still facing massive economic problems and the people were desperate for change • Hitler gave many speeches and spoke of how he wanted to rebuild German’s military and about the greatness and superiority of the German race… this gained many followers for the Nazi party • Nazi’s continued to gain strength in German and by 1930 they were the most popular of the many German political parties • In 1933 the Nazi party had the most support and as the head of it Hitler was then name the Chancellor of German, the highest and most powerful position in the German gov’t

25. Hitler’s Germany • Hitler Controls Germany • Hitler began to crush his opponents many were arrested and many were “persuaded” to join the Nazi party • By these means Hitler forced the German legislature into giving him dictatorial powers • Hitler’s control became a totalitarian regime • Hitler took control of all aspect of life • He grew the German military • Strict wage control and the use of gov’t programs help improve unemployment

26. Hitler’s Germany • Nazi Anti-Semitism • A key component was a strong Anti-Semitic belief • Anti-Semitism- is a hostility toward or prejudice against Jews • Hitler blamed the Jews for many of Germany’s problems including the defeat in WWI • Anti-Semitism had been in Christian Europe since the Middle Ages. • Nazi hated them for their difference in religion and difference in ancestory • Nazi’s passed many laws that prohibited Jews for German life • They were not allowed to marry Germans • Nuremburg Laws eliminated German Jews citizenship and many civil and property rights and the right to vote • Places they could work were limited • Nuremburg laws defined a person as Jewish by ancestor not religion • Nazi’s encouraged anti-Jewish riots called the night of the broken glass • 100’s of Jews were killed • Many Jewish businesses and places of worship were destroyed • This unfortunately was nothing compared to what was to come. Hitler would lead the world into it’s bloodiest war.

27. Assignment/Homework • If you are not finished filming your Chapter 26 project you need to finish today. It is due tomorrow • Chapter 27.2 and 27.4 questions are due tomorrow you have the rest of the class to finish them • Complete Chapter 27.2 section assessment 1-4  (all parts) page 816 • Complete Chapter 27.4 section assessment 1-4 (all parts)on page 827