20th Century Turmoil: War, Crisis, and Totalitarianism
Consequences of World War I
The American countries exporting agricultural products, mining, and oil for the war effort gained the most. However, imports became more expensive for Latin America, leading to the strengthening of certain local industries. The end of the conflict stopped the export boom, initiating a crisis until 1924. Natural population increases and decreased immigration boosted labor unions and urbanization. The middle classes grew, and the U.S. economic presence displaced English capital.
Economic Crisis of 1929: Reasons
Post-war German economic collapse, the 1921 crisis affecting victorious countries, industrialized optimism since 1925 fueled by overproduction and speculation. Overproduction stemmed from industrial sectors developed during the war to meet European imports. Continuous production without increased consumption led to a surplus and stock increase. Agricultural crops initially achieved economic balance but soon faced price collapses. Stock prices rose, production costs were covered by bank loans, and speculation and installment purchases began.
Consequences:
- Business and industry ruins
- Shareholder losses
- Collapse of industrial and agricultural production
- Capital repatriation
- Devaluation
- Restricted bilateral agreements and dumping
- State interventionism and authoritarian governments
- Demographic decline and reduced purchasing power for low and middle classes
Totalitarianism
Derived from the Fascist conception of the state, it applies to dictatorial regimes that subordinate individual rights to the state.
Fascism is an authoritarian movement established in Europe between the two World Wars. It arose from the crisis of 1929, loss of European hegemony, support from wealthy groups, mass political participation, and social instability.
Characteristics:
- Nationalist exaltation
- Totalitarian state structure
- Party system
- Charismatic leader
- Anti-democracy and racism
Italian Fascism
In 1919, Mussolini founded the Fascist Party. By 1925/1926, the government became a dictatorship, suppressing press freedom and opposing parties. In 1932, fascism began an expansionist policy. In 1933, Mussolini allied with Hitler. He created a corporate state, prohibited strikes, and intervened in the economy to avoid devaluation and stimulate production.
Nazism
A totalitarian doctrine advocating an anti-democratic, unparliamentary, and racist state, supported by the German National Socialist Party and Adolf Hitler, who ruled from 1933 to 1945.
Causes:
- German post-WWI economic crisis and social confrontation
- Hitler’s rise to power, backed by parliament
- Hitler’s notion of a superior race, hatred of Jews, and need for expansion
- Support from heavy industrial capitalists
In 1933, Hitler became chancellor, prohibited opposition, eliminated the division of powers, and established the Nazi party as the sole political party. Germany expanded, unemployment ended, wages increased, and the state controlled prices and wages.
Uruguay in the 1900s
After the 1890 economic crisis and the 1897 revolution, major changes were expected. The population increased due to European immigration, leading to urban concentration and the formation of the middle class. Montevideo became the political, economic, social, and cultural center. Workers formed unions and initiated strikes. The century was culturally dominated by the Generation of 1900.
Leisure time in Montevideo varied between social classes. The lower classes enjoyed soccer, beaches, and field trips, while the upper classes played golf, frequented beaches, and dined in restaurants. Women were primarily considered homemakers but began to seek emancipation and claim their rights.
Batlle Ideology
Humanist, believing in progress and reform, denying violence and revolution. Advocated for changes within a liberal and democratic structure. Believed in individual freedom and justice, denied class struggle but supported social justice and state intervention. Supported democracy, universal suffrage, plebiscite, and a collegiate executive to prevent personal dictatorship. Promoted secularization and education nationwide. Economically, Batlle believed in state intervention in private fields and the defense of national patrimony through nationalization of credit, insurance, and public utilities.
Works:
First Term: Protectionist legislation, free distribution of seeds and clothing to poor farmers, increased resources for education, development of the Faculty of Commerce, removal of religious images in public hospitals.
Second Term: Nationalization of banks and mortgage republic, creation of bank insurance, state monopoly of power, development of agronomic stations, divorce law for single women, eight-hour workday law, free secondary school, increased inheritance tax, recognition of natural children, public works, and the tramway.