The Great Depression and the Rise of Dictatorships

The Great Depression and its Impact

The Great Depression significantly affected industrialized countries, particularly Great Britain, Austria, and Germany in Europe. Countries and colonies exporting raw materials also suffered as industrial nations, facing reduced purchasing power, drastically cut imports. Various solutions, generally based on economic nationalism and state intervention, were implemented.

The New Deal in the United States

In 1933, US President Roosevelt introduced the "New Deal," a plan to revive the economy through state intervention. This involved promoting public works, subsidizing firms, controlling banking, and expanding social welfare.

Great Britain's Response

In contrast, Great Britain limited its intervention to devaluing the pound by 25%, making exports more competitive.

Protectionism and Devaluation

The devaluation was accompanied by protectionism, implementing tariffs on imports to protect domestic industries.

The Erosion of Parliamentary Democracies

Several factors weakened parliamentary democracies in the 1920s, primarily the crisis of the capitalist system, manifested in post-war difficulties and the 1929 recession. The Soviet Union, with its different economic system, remained relatively unaffected, enhancing its prestige.

The Rise of Communism and Political Instability

The unemployment and misery caused by the capitalist crisis strengthened trade unions and communist parties, leading to political instability as workers' demands intensified.

The Appeal of Dictatorships

Fearing the Soviet model, wealthy and middle classes began supporting dictatorial regimes and rejecting workers' organizations.

The Spread of Dictatorships

By the late 1930s, dictatorships, often totalitarian, became prevalent in Europe, surpassing democracies.

Characteristics of Totalitarian Regimes

1. Suppression of dissenting ideas and activities.
2. Exaltation of the dictator and a personality cult.
3. Repression of challenges to state power.
4. A single mass party representing the official ideology.
5. An official state ideology.
6. A system of terror and violence enforced by a political police force.
7. An all-encompassing state controlling all aspects of citizens' lives.

Key Terms and Concepts

Hyperinflation (H)

A rapid rise in the price level, as seen in post-war Germany.

Roaring Twenties (RT)

A period of economic prosperity and cultural growth in the 1920s United States.

Locarno Pact (PL)

A series of agreements guaranteeing peace in Western Europe, signed in 1925.

Great Depression (GD)

The economic crisis starting with the 1929 stock market crash.

New Deal (ND) (1933-1938)

President Roosevelt's program for economic recovery.

Totalitarianism (T)

A political system where a single party, led by a dictator, has total control over citizens' lives.