World War II, 1929 Crisis, and Spanish Transition to Democracy
World War II and its Aftermath
In 1936, Germany and Italy formed the Rome-Berlin Axis, later joined by Japan, creating the Rome-Berlin-Tokyo Axis. The war resulted in 55 million deaths, half of whom were civilians. Nazism led to the Jewish genocide, with 6 million deaths in extermination camps. Millions were forcibly displaced, and many borders established after World War I were redrawn. Europe was devastated, with incalculable material losses, a fall in the standard of living, rising prices due to scarcity, and millions unemployed. Eastern Europe, conquered by the USSR, saw the establishment of communist regimes. The war also caused a strong moral crisis due to the atrocities committed and shifted the power center from Europe to the U.S. and the Soviet Union. Germany was partitioned into four zones occupied by the United States, the Soviet Union, Britain, and France, with a similar partition in Berlin, effectively dissolving Germany as a state.
The Government of Adolfo Suarez
In July 1976, King Juan Carlos appointed Adolfo Suarez as Chairman of the Government. Despite coming from the Franco regime, Suarez initiated a reform program to establish democracy. This included reforming the Penal Code to legalize most political parties and grant amnesty to political prisoners. The Act for Political Reform was promulgated in November 1976. The right to strike was regulated in March 1977. The Communist Party and unions were legalized in April 1977. General elections were held on June 15, 1977. A new Constitution was drafted and approved in a referendum on December 6, 1978.
The Economic Crisis of 1929
After an economic recovery in 1923, with increased production, mass consumption, and global trade, the New York Stock Exchange collapsed in October 1929. This market and financial crisis became an economic crisis with severe social and political implications.
Causes of the Crisis
The stock market crisis was primarily caused by overproduction of agricultural and industrial goods, which remained unsold. Companies’ profits declined, and the value of their shares plummeted. Investors began selling their shares, further decreasing their value. Banks, which had granted loans for share purchases, failed and suspended operations when they could not recover the loans.
Keynesian Economics
British economist J.M. Keynes proposed in 1936 that the State should organize the economy by controlling prices, setting wages, subsidizing companies to boost employment, investing in public works, and creating unemployment insurance funded by state budgets.
The New Deal
In the United States, President Roosevelt implemented the New Deal, an economic policy aimed at addressing the crisis. This included providing loans to banks, increasing wages, reducing working hours, providing aid to the unemployed, and investing large sums in public works to stimulate employment. These measures helped restart the capitalist economy by boosting consumption.