Global Transformations: Post-WWI Economic Shifts & Totalitarianism

Post-World War I Economic and Political Landscape

Post-War Economic Challenges

World economic dominance shifted from Great Britain to the United States. In Europe, the adaptation from a war economy to a peace economy was difficult due to the cessation of hostilities, rampant inflation, and high unemployment. The crisis was particularly severe in Germany.

International Efforts for Stability

To resolve the conflict and stabilize the European economy, the United States introduced the Dawes Plan in 1924. This plan significantly improved relations between France and Germany, leading to the signing of the Treaty of Locarno in 1925. Germany was subsequently admitted into the League of Nations in 1926, marking a period of cautious optimism.

Economic Instability and Recovery Measures

Economic Instability: Overproduction and Speculation

A key factor contributing to economic instability was overproduction. This was exacerbated by widespread speculation, where banks lent money to businesses and individuals, who then invested heavily in the volatile stock market, creating an unsustainable bubble.

Measures for Economic Recovery

In response to the economic downturn, various measures were implemented, including large-scale public works programs, farming subsidies to support the agricultural sector, efforts to improve working conditions, and a comprehensive restructuring of the financial system to prevent future crises.

The Rise of Totalitarian Regimes

Characteristics of Totalitarian Regimes

Totalitarian states were characterized by:

• A single party controlling all powers of the state.
• Imposition of strict rules on behavior and thought upon the population by the ruling party.
• Systematic violation of human rights and elimination of individual liberties.

Core Tenets of Totalitarian Ideologies

Common features across totalitarian ideologies included:

• Strong opposition to democracy and communism.
• An exalted role for the state, often seen as supreme.
• Rule by a single political party.
• Reliance on violence and coercion.
• A monopoly of the media and extensive use of propaganda.
• A state-controlled economy.
• Intense nationalism and often social inequality.
• Emphasis on militarism.

Nazi Germany: Ideology and Economic Policies

Foundations of Nazi Ideology

Key elements of Nazi ideology included:

• Racism: The primary expression of racism was anti-Semitism, or hatred towards Jews, who were scapegoated for all of Germany’s problems.
• Claims of the inherent superiority of the Aryan race.
• The concept of Lebensraum (living space): Hitler believed Aryans should conquer new territory to expand and settle.

Nazi Economic Policies

The Nazi intervention in the economy involved:

• Setting up a propaganda initiative called Beauty of Work.
• Pursuing an unsuccessful policy of autarky (economic self-sufficiency).
• Implementing a massive program of public works to reduce unemployment and build infrastructure.
• Undertaking extensive military rearmament, which stimulated industrial production.

The Soviet Union Under Stalin

The Comintern and Global Revolution

The Comintern (Communist International) was an organization inviting other countries to join to strengthen the global communist movement. This was a strategy to extend the communist revolution beyond the USSR's borders.

Stalin's Consolidation of Power

Joseph Stalin promoted a cult of personality, depicting himself as the 'father of the people'. Simultaneously, he reinforced the role of the CPSU (Communist Party of the Soviet Union), ensuring that only communists participated in public life. Through the systematic use of terror, enforced by the NKVD police force, he effectively silenced all opposition.