The Great Depression and The Great Depression and the Authoritarian Responsethe Authoritarian Response

C30C30

EQ: How did the Great Depression EQ: How did the Great Depression impact the world and in what impact the world and in what

ways did different nations react to ways did different nations react to it?it?

The Advent of the Great The Advent of the Great DepressionDepression

Fact: The Stock Market Crash in the US Fact: The Stock Market Crash in the US greatly affected the economic climate of greatly affected the economic climate of the world in 1929the world in 1929Fiction: IT WAS NOT THE SOLE CAUSE OF Fiction: IT WAS NOT THE SOLE CAUSE OF THE GREAT DEPRESSION, JUST A SPARKTHE GREAT DEPRESSION, JUST A SPARKFact: Over production and over-Fact: Over production and over-speculation in industry in the Western speculation in industry in the Western world, coupled with mounting war debts in world, coupled with mounting war debts in Europe and the inabilities of dying Europe and the inabilities of dying monarchical orders to rebuild Europe over monarchical orders to rebuild Europe over the 1920s were the true driving forces the 1920s were the true driving forces behind the Great Depressionbehind the Great Depression

Causation of DepressionCausation of Depression

Step 1: World War I had a ripple effect on the world Step 1: World War I had a ripple effect on the world economy in the 1920s…while the US prospered economy in the 1920s…while the US prospered immensely, Europe did not, causing an imbalanceimmensely, Europe did not, causing an imbalanceStep 2: Farmers in the West and the European Step 2: Farmers in the West and the European colonies overproduced, causing food surpluses, colonies overproduced, causing food surpluses, price hikes and their own incomes to fallprice hikes and their own incomes to fallStep 3: Everyone was in debt to each other and Step 3: Everyone was in debt to each other and everyone wanted to be repaideveryone wanted to be repaidStep 4: Everybody raised their tariffs to protect Step 4: Everybody raised their tariffs to protect their economy, making trade impossibletheir economy, making trade impossibleStep 5: Industry began to decline since goods were Step 5: Industry began to decline since goods were unable to be sold/bought by consumersunable to be sold/bought by consumers

The Spark and the FireThe Spark and the FireThe stock market crash of October 29, The stock market crash of October 29, 1929 was the spark that set forth the 1929 was the spark that set forth the impending depressionimpending depressionBanks failed in the US, followed by the Banks failed in the US, followed by the swift decline in production, trade and swift decline in production, trade and loss of jobs…Europe followed suit with loss of jobs…Europe followed suit with the same results…it has been the same results…it has been estimated that 1/3 of the working estimated that 1/3 of the working population in the world was population in the world was unemployed at the beginning of the unemployed at the beginning of the Depression…many resorted to begging Depression…many resorted to begging and vagrancyand vagrancyEconomic depressions were not a new Economic depressions were not a new thing, but the intensity and length of thing, but the intensity and length of this event were unlike any felt by this event were unlike any felt by Western society before…western Western society before…western governments had no ways, no real governments had no ways, no real good plans…many were forced to take good plans…many were forced to take active roles in their economies active roles in their economies People sought escape from poverty…People sought escape from poverty…migration reached an all time high migration reached an all time high worldwide in the 1930s as people worldwide in the 1930s as people moved anywhere to raise their moved anywhere to raise their status…those who did not move status…those who did not move sought fantasy in literature and sought fantasy in literature and movies of the time to distract them movies of the time to distract them from their sorrowsfrom their sorrows

ResponsesResponses

Most early responses by governments failed Most early responses by governments failed miserably, leading to increased discontent miserably, leading to increased discontent with ruling parties in various nationswith ruling parties in various nations

There are two general political effects:There are two general political effects:– 1) parliamentary governments became 1) parliamentary governments became

increasingly incapacitated with dealing with increasingly incapacitated with dealing with problems of Depression (US, England and France)problems of Depression (US, England and France)…eventually socialist measures had to be …eventually socialist measures had to be incorporated to cause changeincorporated to cause change

– 2) parliamentary governments were overthrown 2) parliamentary governments were overthrown (Italy, Germany and Spain) and replaced with (Italy, Germany and Spain) and replaced with totalitarian governments (more later)totalitarian governments (more later)

The New DealThe New Deal

A lil US History review…Herbert Hoover’s laissez faire A lil US History review…Herbert Hoover’s laissez faire policies soured the American voting public who elected policies soured the American voting public who elected FDR in 1932 with the promise of a NEW DEALFDR in 1932 with the promise of a NEW DEALFDR proceeded in the first 100 days of his office to get FDR proceeded in the first 100 days of his office to get government actively involved in fixing the shattered US government actively involved in fixing the shattered US economy…banks were closed, then reformed…economy…banks were closed, then reformed…government agencies offered jobs to the unemployed…government agencies offered jobs to the unemployed…steps were taken to modernize backwards areas of the steps were taken to modernize backwards areas of the countrycountryCritical developments in FDR’s second New Deal were Critical developments in FDR’s second New Deal were socialist ideas of a welfare state and social securitysocialist ideas of a welfare state and social securityThe New Deal DID NOT solve the Great Depression in The New Deal DID NOT solve the Great Depression in America, BUT it helped rebuild the confidence of the America, BUT it helped rebuild the confidence of the average American in their Democratic system, avoiding average American in their Democratic system, avoiding the plagues of dictators that would befall European the plagues of dictators that would befall European nationsnations

1930’s “-ISMS”1930’s “-ISMS”Outside of France and Britain, several new political Outside of France and Britain, several new political philosophies gained steamphilosophies gained steamFASCISM - (from C29) authoritarian leadership devoted to FASCISM - (from C29) authoritarian leadership devoted to nationalism rather than capitalism or socialismnationalism rather than capitalism or socialismNAZISM – National Socialist organization, with similarities to NAZISM – National Socialist organization, with similarities to Fascism advocating German nationalism (unity of all Fascism advocating German nationalism (unity of all Germans everywhere, even if they were the minority)Germans everywhere, even if they were the minority)TOTALITARIANISM – absolute direct rule of the people, no TOTALITARIANISM – absolute direct rule of the people, no party politics, government control of capital and direct party politics, government control of capital and direct economic reform (quasi socialist)economic reform (quasi socialist)Each system’s reaction to the Great Depression was to Each system’s reaction to the Great Depression was to establish imperial territorial control over states lost as a establish imperial territorial control over states lost as a result of WWI, establish welfare states which parliaments in result of WWI, establish welfare states which parliaments in each country refused to do, AND most importantly, speak each country refused to do, AND most importantly, speak ardently as to who represented the greatest threats to ardently as to who represented the greatest threats to solidarity within each nation (For Germany, it was Jews…for solidarity within each nation (For Germany, it was Jews…for Italy, just about every other Imperialist nation controlling Italy, just about every other Imperialist nation controlling African territory…for the Soviet Union, it was anything that African territory…for the Soviet Union, it was anything that was anti-worker)was anti-worker)

Reaction to and Spread of IdeasReaction to and Spread of IdeasBoth the Nazis and Fascists in Both the Nazis and Fascists in Europe received little Europe received little attention from the West (US, attention from the West (US, France and Britain)…France and Britain)…Both proclaimed Both proclaimed appeasement, meaning appeasement, meaning Western nations were content Western nations were content to allow territorial expansion to allow territorial expansion by both countries in exchange by both countries in exchange for peace (Germany for peace (Germany expanding territory in Austria expanding territory in Austria and Czechoslovakia while and Czechoslovakia while Italy occupied Ethiopia)Italy occupied Ethiopia)Meanwhile, Fascist ideas Meanwhile, Fascist ideas found their way into Spain as found their way into Spain as civil war broke out in 1936, civil war broke out in 1936, with General Francisco Franco with General Francisco Franco establishing an authoritarian establishing an authoritarian (not wholy Fascist but similar (not wholy Fascist but similar to a LA military dictatorship) to a LA military dictatorship) state in Spain for the next 30 state in Spain for the next 30 yearsyears

Latin America and the DepressionLatin America and the Depression

Latin America was hit hard by the Great Latin America was hit hard by the Great Depression (losing trading partners) but Depression (losing trading partners) but responded with political reforms and an effort responded with political reforms and an effort to gain greater economic independenceto gain greater economic independenceCut off during WWI, LA nations experienced Cut off during WWI, LA nations experienced industrial growth from ISI (import substitution industrial growth from ISI (import substitution industrialization)…most was in the form of industrialization)…most was in the form of textile productiontextile productionReal wages and poverty STILL festered though Real wages and poverty STILL festered though despite this growth…population growth despite this growth…population growth exploded still, as immigrants and working class exploded still, as immigrants and working class families emerged AND urban centers came to families emerged AND urban centers came to dominate the economic landscapedominate the economic landscape

Latin America and the DepressionLatin America and the DepressionThe growth of the labor class forced many traditional “land The growth of the labor class forced many traditional “land aristocratic” governments in Argentina, Chile and Brazil to aristocratic” governments in Argentina, Chile and Brazil to open up the political processopen up the political processBoth the traditional educated elites and the urban laborers Both the traditional educated elites and the urban laborers forged alliances, but each attempt in various nations was forged alliances, but each attempt in various nations was met with great opposition by military caudillos, peasants and met with great opposition by military caudillos, peasants and even bandits who desired a return to export only capitalism even bandits who desired a return to export only capitalism (problem is, who would they export to?)(problem is, who would they export to?)Add to this mix, a growing fervor of socialist ideas brought by Add to this mix, a growing fervor of socialist ideas brought by immigrants, many who resorted to anarchy, others who immigrants, many who resorted to anarchy, others who resorted to syndicalism, using organized labor to create resorted to syndicalism, using organized labor to create political forces…many labor strikes broke out as a result of political forces…many labor strikes broke out as a result of the latter, focused on changing labor conditions and the latter, focused on changing labor conditions and improving payimproving pay– Tragic Week, Argentina 1919 = government repression Tragic Week, Argentina 1919 = government repression

against these laborers mainly purported as against these laborers mainly purported as immigrant/foreign insurgents bent on toppling order in immigrant/foreign insurgents bent on toppling order in ArgentinaArgentina

Latin America and the DepressionLatin America and the DepressionBy the 1930s, the liberal governments of the 19By the 1930s, the liberal governments of the 19thth C began to show failure…the middle class had C began to show failure…the middle class had forged alliances with elites and the military rather forged alliances with elites and the military rather than expressing individual democratic beliefs as than expressing individual democratic beliefs as was done in the Westwas done in the WestThe “intelligentsia” in LA (artists and writers) The “intelligentsia” in LA (artists and writers) reached out to Europe for inspiration and began reached out to Europe for inspiration and began to form Socialist parties, particularly after the to form Socialist parties, particularly after the Russian Revolution of 1917Russian Revolution of 1917Socialist parties were not the only political Socialist parties were not the only political entities decrying the unity of the middle and entities decrying the unity of the middle and upper class elites…even the Roman Catholic upper class elites…even the Roman Catholic church denounced this unity as “unholy”, church denounced this unity as “unholy”, presenting secularization in capitalist societypresenting secularization in capitalist society

Latin American Response to the Latin American Response to the CrashCrash

Social reform movements made great Social reform movements made great headway in the 1930sheadway in the 1930sA corporatist movement evolved A corporatist movement evolved emphasizing the organic nature of emphasizing the organic nature of society and making the state as society and making the state as mediator in disputesmediator in disputesIn short, it was quasi-Fascism, state In short, it was quasi-Fascism, state control over all aspects of the control over all aspects of the economy, w/ strict authoritarian ruleeconomy, w/ strict authoritarian ruleThe most successful form was The most successful form was instituted in Mexico by Lázaro instituted in Mexico by Lázaro Cárdenas…through land reforms Cárdenas…through land reforms known as known as ejidosejidos, millions of acres of , millions of acres of land were redistributed into land were redistributed into communal farms AND oil production communal farms AND oil production was wholly nationalized into a state was wholly nationalized into a state controlled monopoly, NO foreign controlled monopoly, NO foreign influenceinfluence

Japan’s Response to the DepressionJapan’s Response to the Depression

Japan was hit hard by the Depression BUT Japan was hit hard by the Depression BUT they easily recovered thanks to their ever they easily recovered thanks to their ever expanding imperialist desires of the expanding imperialist desires of the government (Manchuria was completely government (Manchuria was completely procured by 1931)procured by 1931)Japan was operating under a new policy Japan was operating under a new policy of of militarizationmilitarization… by the end of the … by the end of the 1930s, Japan’s government had been 1930s, Japan’s government had been overtly influenced by military leaders to overtly influenced by military leaders to continue territorial expansion…China was continue territorial expansion…China was thus invaded and most of its eastern thus invaded and most of its eastern territory conquered by 1938 territory conquered by 1938

Japan’s Instant RecoveryJapan’s Instant RecoveryAs it would do for the US, the build up to war As it would do for the US, the build up to war reinvigorated the Japanese economy…the military reinvigorated the Japanese economy…the military government acted quickly in the 30s to increase government acted quickly in the 30s to increase government spending in manufacturing and food government spending in manufacturing and food production…unemployment was virtually non-production…unemployment was virtually non-existent by 1936existent by 1936The driving force behind Japan’s instant recovery The driving force behind Japan’s instant recovery was social nationalism, pride in rebuilding one’s was social nationalism, pride in rebuilding one’s country…the Japanese peoples ability to be self-country…the Japanese peoples ability to be self-sufficient instantly contributed to the changesufficient instantly contributed to the changeBig corporations in Japan offered loyal workers Big corporations in Japan offered loyal workers lifetime job contracts, company entertainment lifetime job contracts, company entertainment (probably how karaoke got started ARGH), and (probably how karaoke got started ARGH), and other incentives to promote hard work and other incentives to promote hard work and devotion (die kieretsu)devotion (die kieretsu)By the end of the 30s Japanese competition on By the end of the 30s Japanese competition on the open market began to enrage the West, as the open market began to enrage the West, as Japan was now geared up and determined to Japan was now geared up and determined to establish a greater empireestablish a greater empire

The Soviet UnionThe Soviet UnionTotalitarian Communism in the Totalitarian Communism in the USSR helped it completely avoid USSR helped it completely avoid the Depression (given that under the Depression (given that under Communism, a nation is meant to Communism, a nation is meant to be wholly self sustaining)be wholly self sustaining)

Kulaks in Russia, who were still bent Kulaks in Russia, who were still bent on capitalist trade, still owned on capitalist trade, still owned (privately) a large portion of the (privately) a large portion of the farms and industriesfarms and industries

Stalin had 2 simple goals: 1) make Stalin had 2 simple goals: 1) make the USSR completely industrial and the USSR completely industrial and 2) do so under the complete control 2) do so under the complete control of the state (meaning eliminate the of the state (meaning eliminate the kulaks AND any foreign influences)kulaks AND any foreign influences)

Soviet Economic Policies: AgricultureSoviet Economic Policies: AgricultureIn 1928, a massive collectivization In 1928, a massive collectivization program began in the agriculture program began in the agriculture sector, the goal being to create large sector, the goal being to create large state run farms rather than privately state run farms rather than privately owned…the state pressured rural owned…the state pressured rural peasants to join these collectives in peasants to join these collectives in order to be controlled...any peasants order to be controlled...any peasants who resisted were either starved or who resisted were either starved or murderedmurderedA main goal of collectivism was to A main goal of collectivism was to further mechanize Russia’s agriculture further mechanize Russia’s agriculture sector (still largely without great sector (still largely without great advances in technology at this time)advances in technology at this time)Kulaks did resist these plans, many Kulaks did resist these plans, many burning their farms, salting fields or burning their farms, salting fields or killing livestock…in response, Stalin had killing livestock…in response, Stalin had many killed or deported to Siberia, many killed or deported to Siberia, numbers which today far outnumbered numbers which today far outnumbered the deaths of the Holocaustthe deaths of the HolocaustCollectivism wasn’t the biggest hit…it Collectivism wasn’t the biggest hit…it only provided minimal food supplies for only provided minimal food supplies for the state, remaining as the USSR’s the state, remaining as the USSR’s greatest weakness throughout its greatest weakness throughout its historyhistory

Soviet Economic Policies: IndustrySoviet Economic Policies: IndustryWhereas agriculture was almost a failure, Whereas agriculture was almost a failure, industry was a stunning success for the Soviet industry was a stunning success for the Soviet governmentgovernmentStalin’s five year plans expressed priorities for Stalin’s five year plans expressed priorities for industrial development as well as output goals industrial development as well as output goals and facility construction plansand facility construction plansThe government sank money in building massive The government sank money in building massive power plants, smelting factories and mining power plants, smelting factories and mining operationsoperationsThe major focus was on heavy industry, The major focus was on heavy industry, producing military products and motorized producing military products and motorized vehicles while not really doing the job producing vehicles while not really doing the job producing consumer goods (civilian vehicles, appliances, consumer goods (civilian vehicles, appliances, etc.)etc.)The result of Soviet industry was inefficiency, The result of Soviet industry was inefficiency, wasting of resources and sever environmental wasting of resources and sever environmental degradation at the expense of the working degradation at the expense of the working populacepopulace

Results of Soviet Industrial GrowthResults of Soviet Industrial GrowthThere were incentives to loyal production (like There were incentives to loyal production (like Japan) and a rising nationalist fervor developed Japan) and a rising nationalist fervor developed in support of the state…workers in the in support of the state…workers in the Communist state received welfare support AND Communist state received welfare support AND labor unions (though government controlled labor unions (though government controlled and forbidden to strike) AND guaranteed and forbidden to strike) AND guaranteed protection of their job in time of illness and old protection of their job in time of illness and old age, bonuses for harder work and public age, bonuses for harder work and public recognition awardsrecognition awardsUrban areas grew rapidly as many agriculture Urban areas grew rapidly as many agriculture workers suffering on collectives made shifts to workers suffering on collectives made shifts to industrial productionindustrial production

Soviet TotalitarianismSoviet TotalitarianismStalinist rule was harsh and Stalinist rule was harsh and oppressive…intellectuals who did not oppressive…intellectuals who did not conform were sent to Siberian labor conform were sent to Siberian labor camps and many people spied on each camps and many people spied on each other to rat them out to the governmentother to rat them out to the governmentSocialist realism, glorious artistic Socialist realism, glorious artistic representation of workers, peasants and representation of workers, peasants and soldiers as heroes, dominated cultural soldiers as heroes, dominated cultural life AND free scientific thinking was life AND free scientific thinking was quashedquashedGreat purges continued in the late 30s, Great purges continued in the late 30s, as hundreds of people were forced to as hundreds of people were forced to confess as dissidents or enemies of the confess as dissidents or enemies of the state…many were either executed, or state…many were either executed, or AGAIN sent to SiberiaAGAIN sent to SiberiaStalin’s executive committee, the Stalin’s executive committee, the Politburo, negligently followed his Politburo, negligently followed his lead…also, many of the people they lead…also, many of the people they persecuted were military leaders, persecuted were military leaders, greatly weakening their standing armygreatly weakening their standing armyAs a result, Stalin reluctantly signed a As a result, Stalin reluctantly signed a non-aggression pact with Hitler to non-aggression pact with Hitler to rebuild the Russian army with loyal rebuild the Russian army with loyal leaders for impending warleaders for impending war

ConclusionsConclusionsThe Depression clearly changed the world The Depression clearly changed the world balance that had existed over the last balance that had existed over the last century…the West was vulnerable, and century…the West was vulnerable, and new powers like Germany, Japan and the new powers like Germany, Japan and the USSR emerged thanks to militaristic USSR emerged thanks to militaristic endeavors, some for brief shining momentendeavors, some for brief shining momentMeanwhile, revolution and disillusion Meanwhile, revolution and disillusion existed in the colonial world, as many existed in the colonial world, as many colonies begin nationalist movements colonies begin nationalist movements towards independence in the 30s (Egypt, towards independence in the 30s (Egypt, Syria, Lebanon, Turkey, Persia (Iran), Syria, Lebanon, Turkey, Persia (Iran), India)India)

This week…This week…NO NOTES (Huh???)NO NOTES (Huh???)

Tuesday: Analysis of Social Realism (Document Tuesday: Analysis of Social Realism (Document and Visual)and Visual)

Wednesday/Thursday: You will work on graphic Wednesday/Thursday: You will work on graphic organizers and questions for this chapter that organizers and questions for this chapter that will supplant your usual noteswill supplant your usual notes

Friday: Test on C30, Graphic Organizers DueFriday: Test on C30, Graphic Organizers Due