Post-World War I Geopolitics: Reshaping Nations
Germany
The end of World War I brought profound political and social upheaval to Germany. The Weimar Republic, proclaimed in 1918, faced serious challenges:
- Radicalization of political positions: On the left wing, the Spartacus League, led by Karl Liebknecht (1871-1919) and Rosa Luxemburg, emerged. They founded the German Communist Party (KPD) in 1919. At the grassroots level, workers’ and soldiers’ councils, mirroring the Russian soviets, gained support from the Spartacus League.
- Separatist movements: These movements arose in the Rhineland and Bavaria, further destabilizing the nascent republic.
The Social Democrats, in power, aimed to establish a liberal democratic republic. With the army’s assistance, the government suppressed the unrest, leading to the deaths of Rosa Luxemburg and Karl Liebknecht, persecution of workers’ councils, and repression of separatist movements. In 1919, following the Kaiser’s abdication, a constituent assembly convened in Weimar, drafting the Weimar Constitution, which established a republican system blending presidential and parliamentary elements.
The Weimar Republic struggled to reconcile extreme political factions, navigate the climate of revenge, and address pressing issues:
- Conservatives blamed Marxists and Jews for the nation’s woes.
- The military, with conservative backing, attempted a coup.
- Workers and the middle class grappled with economic hardship.
- Nationalists founded the German Workers’ Party, precursor to the Nazi Party.
- France occupied the Ruhr area in 1923.
From 1924, Germany’s international relations improved. Under President Hindenburg, the Republic took a conservative turn, experiencing a brief economic boom interrupted by the 1929 crisis. The increasingly critical situation paved the way for the rise of Adolf Hitler, seen by some as a potential savior.
United States
The war enriched the U.S., opening new markets, boosting industrial production, and expanding shipping. Surplus increased from $435 million in 1914 to $3,567 million in 1917.
Post-war Crisis and Republican Triumph
Post-war, widespread dissatisfaction with Wilson fueled a political crisis. Critics targeted his strengthening of the executive branch, control over production, and partisan politics. As in other nations, the labor movement resurged, with unions demanding improvements. By 1920, as Europe began rebuilding and repaying war debts, its increasing self-sufficiency reduced U.S. exports, leading to surplus production, business closures, and rising unemployment. This shift in economic fortunes propelled the Republicans to victory in the presidential elections.
The Republican era was marked by:
- Government support of high finance
- Protectionist policies
- Immigration restrictions
- Business consolidation to combat closures and layoffs
In essence, the 1920s witnessed the implementation of a refined conservatism.
Prosperity and Failure
U.S. economic progress was undeniable. After the 1920 crisis, American capitalism focused on developing the domestic market through easy credit and high wages, boosting worker purchasing power (Henry Ford). Mass production lowered product prices and fostered large business concentrations (trusts). However, this apparent prosperity masked systemic flaws:
- Depressed agriculture
- Endemic unemployment
- Highly speculative finances leading to the 1929 crisis
- Stark social contrasts, with racial minorities and immigrants bearing the brunt
The Republican era’s ideology was characterized by dogmatism and puritanism, with a resurgence of racist sentiments and the Ku Klux Klan.
The reaction to the 1929 crisis came in the form of Roosevelt’s “New Deal” (1932), an interventionist economic policy aimed at reviving consumption, investment, and prices. Public works projects increased employment. Labor laws implemented unemployment benefits, minimum wages, and maximum working hours. The dollar was devalued to boost exports. Agricultural and industrial production was regulated to prevent price drops. Globally, particularly in totalitarian regimes, military buildup accelerated industrial production and employment growth.
Great Britain
Great Britain faced a structural economic crisis after World War I. Its industry relied on coal while other nations transitioned to oil and electricity. British industry stagnated, and firms remained dispersed. Exports, previously contributing to a positive trade balance, declined in the post-war crisis.
Social conflicts intensified. In 1919, trade unions boasted eight million members, their demands backed by strikes. Unemployment soared during the interwar years.
Politically, a liberal-conservative coalition led by Lloyd George won the 1919 elections. His tenure was marked by two key challenges:
- Strikes in 1920-1921 demanding an 8-hour workday and mandatory labor insurance.
- The Irish question: The Sinn Féin movement fought for independence against the British and the Protestant minority in Ulster, who opposed separation from England. Sinn Féin gained international recognition for the principle of self-determination.
The British government partitioned Ireland, creating parliaments in Belfast and Dublin. Sinn Féin’s 1918 electoral victory in Dublin sparked clashes with the British. The Irish Republican Army (IRA) grew in strength. In 1921, after a three-year civil war, Britain accepted the creation of the Irish Free State with its own institutions, though still under the British Crown. Ulster remained part of the United Kingdom. Full Irish independence was achieved in 1938, dividing the island into the sovereign Republic of Ireland (Éire) and Northern Ireland (Ulster), which remained part of the UK. The Irish question led to Lloyd George’s downfall, the decline of the Liberal Party, and the rise of the Labour Party. Labour, Conservatives, and Liberals alternated in power, often forming coalitions, but none effectively addressed the economic woes exacerbated by the 1929 crisis.
France
France’s post-war economy struggled. Industry and agriculture were neglected, and coal production plummeted. The franc was severely devalued.
Socially, a Labour Economic Council aimed to regulate employment and wages. The General Confederation of Labour (CGT) grew significantly, advocating for better salaries, an 8-hour workday, gender equality, nationalization of key industries, and collective bargaining. The French left’s division in 1920, with socialists and communists splitting, impacted the CGT. Communists left the CGT and formed the Unitary General Confederation of Labour (CGTU).
Fear of a leftist government led to the Republican Nationalist Bloc’s victory, a center-right coalition led by Millerand. Germany’s delayed war reparations payments triggered a financial crisis. Poincaré’s response (1922-1924) involved unpopular high taxes and the Ruhr occupation. This led to a socialist victory in 1924, forming the “Cartel of the Left” led by Herriot. Herriot’s government implemented public schooling, sparking protests. The financial situation worsened, with French capitalists boycotting Herriot’s measures. Political and economic chaos led to Herriot’s resignation and Poincaré’s return with full powers and a national unity government backed by financial and capitalist groups. Poincaré retired in 1929, leaving a recovering economy and a center-right coalition in power. The 1929 crisis manifested later in France, prompting the radical left’s return but also significant instability.