The Great Depression, Fascism, Nazism, and World War II: A Historical Overview
The Great Depression (1929)
Post-WWI Economic Landscape
After World War I, the United States emerged as a major lender to Europe and the world’s largest economy. This was due to the gold standard and a period of economic prosperity fueled by individualism, materialism, and the Monroe Doctrine. The Monroe Doctrine, advocating “America for Americans,” ensured U.S. economic dominance over Latin American raw materials, allowing for price control.
Causes of the Depression
A strong industrial sector led to a culture of consumerism and speculation in the U.S. Overproduction led to factory closures and a decline in stock values. The stock market crash of “Black Tuesday” marked a critical point, with stocks plummeting to their lowest values. Banks, lacking sufficient reserves, failed, leading to currency devaluation and widespread economic hardship.
Consequences of the Depression
The Great Depression had devastating consequences, including:
- Low farm prices
- High unemployment due to industry closures
- Food shortages
- Increased crime, theft, and prostitution
Internationally, the crisis impacted major industrial powers and raw material-producing countries. Germany was the most severely affected European nation, while other countries experienced the crisis to a lesser extent. The Depression fueled doubts about democracy’s ability to address economic hardship and contributed to the rise of nationalist sentiment, straining international relations and initiating a new arms race.
The New Deal
Franklin Delano Roosevelt’s Response
U.S. President Franklin Delano Roosevelt proposed the New Deal, a political and economic plan to combat the Depression.
Purpose of the New Deal
The New Deal aimed to:
- Reactivate consumption to encourage investment
- Implement reforms for long-term economic improvement
- Support the lower-middle class
New Deal Reforms
Key reforms included:
- Regulations for private enterprise and the agricultural sector to increase state control over the national economy
- Inspections to prevent free market abuses
- Construction of infrastructure (schools, roads, airports) to create jobs
- Establishment of a minimum wage and labor standards
- Provision of health services
- Fostering collaboration between state and industry to improve production, optimize industrial organization, and nationalize production methods
- Support for labor unions
The New Deal faced criticism from some politicians who deemed it socialist and unconstitutional.
Fascism in Italy
Post-War Discontent
Italy emerged from the Treaty of Versailles dissatisfied with its territorial gains and facing an economic crisis dependent on foreign demand. Its industry was concentrated in the north, leading to regional economic disparities.
Rise of Fascism
Fascism, a political party, attracted those dissatisfied with the status quo, including farmers, students, businessmen, WWI veterans, anarcho-syndicalists, and importantly, northern industrialists. Benito Mussolini led the Fascist movement, employing violence to dismantle labor organizations. The Fascist National Party orchestrated the “March on Rome,” a coup that forced King Victor Emmanuel III to appoint Mussolini as Prime Minister.
Characteristics of Fascism
Mussolini’s fascist regime was characterized by:
- Extreme nationalism
- Emphasis on the state as the central authority
- State control over all aspects of life (personal, social, economic, religious)
- Corporatism as a means of controlling the economy
- A single-party system with strict discipline and uniforms
Mussolini established a dictatorship that suppressed individual freedoms and rights, promoting the supremacy of the state over the individual. His motto was “Everything for the state, nothing outside the state, nothing against the state.”
Nazism in Germany
Roots of Nazism
Several factors contributed to the rise of Nazism in Germany:
- Resentment over the Treaty of Versailles, its economic sanctions, and territorial losses
- Post-WWI revolutionary movements leading to the abdication of Kaiser Wilhelm II and the establishment of the Weimar Republic
The Weimar Republic
The Weimar Republic, established in 1919, was a federal parliamentary republic with a bicameral legislature. However, it faced challenges, including ambiguities in its constitution and economic instability exacerbated by the Great Depression.
Rise of the Nazi Party
The Nazi Party, an ultra-right-wing nationalist movement led by Adolf Hitler, gained support amid Germany’s economic and political turmoil. Hitler ran for president against Paul von Hindenburg, who won with support from Catholic and Social Democrat parties. However, the Nazis exerted pressure on Hindenburg, leading to Hitler’s appointment as Chancellor. Following Hindenburg’s death, Hitler declared himself Führer and established the Third Reich.
Nazi Principles and Policies
Hitler’s government was based on authoritarianism, centralized control supported by private enterprise, and self-sufficiency. His primary goal was to revive the German economy through public investment and unemployment reduction.
World War II Consequences
World War II had profound global consequences:
- The United States regained its possessions in the eastern Pacific
- The atomic bombings of Hiroshima and Nagasaki led to Japan’s surrender
- Russia occupied Manchuria and North Korea
- The U.S. and USSR emerged as superpowers
- The world became polarized between the socialist East and the democratic West
- The war resulted in immense physical destruction and an estimated 15 million deaths
- Europe’s political map was redrawn, with the Baltic republics regaining independence from the Soviet Union
- The Atlantic Charter, a statement of principles for international cooperation, was drafted by Churchill and Roosevelt
- The United Nations was founded in San Francisco
- The Potsdam Conference divided Germany into four occupation zones (British, French, American, and Soviet), highlighting the growing antagonism between the USSR and the Western Allies