Interwar Period: Economic Crisis, Fascism, and Spanish Civil War

The Roaring Twenties

After World War I, the United States and Europe experienced economic growth. New York became the world's financial center. From 1923, increased production reduced unemployment and improved living standards. However, this period of expansion ended abruptly in 1929.

The 1929 Crash

The U.S. economy faced excessive credit dependence. Companies and consumers were encouraged to take loans, fueling production and stock market investments. The initial stock market downturns caused panic among investors, culminating in Black Thursday on October 24, 1929. The New York Stock Exchange (NYSE) collapsed, preventing shareholders from repaying loans and triggering a series of bank failures. Many people were financially ruined. The United States demanded repayment of foreign loans, spreading the crisis to Europe and the rest of the world by 1931.

Consequences of the Crash

• Unemployment and widespread poverty
• Increased government intervention (e.g., the New Deal)
• Social unrest and disillusionment with democracy
• Rise of ultranationalist and anti-communist movements

The New Deal in the U.S. focused on social protection, employment creation, and support for industry, agriculture, and public works. In many countries, people grew discontent with democracy due to its failure to resolve the crisis. This led to political polarization, with some workers advocating revolution while others (bourgeoisie, middle class) supported strong, ultranationalist, and anti-communist governments. In Spain, these tensions contributed to the outbreak of the Civil War.

Rise of Fascism and Nazism

Following World War I, fascism gained power in Italy, establishing an authoritarian and ultranationalist regime. Benito Mussolini seized power in 1922. In Germany, fear of communism and the economic crisis of 1929 fueled social discontent and the rise of Adolf Hitler. Hitler established a totalitarian, racist, and expansionist regime in 1933. He dismantled the parliamentary system, suppressed opposition through violence and agencies like the Gestapo, and initiated a brutal persecution of Jews, leading to legal discrimination, property confiscation, and ultimately, extermination.

Stalinist Era

After Lenin's death in 1924, a power struggle ensued between Trotsky and Stalin. Stalin emerged victorious and implemented a harsh totalitarian regime. The Communist Party controlled all aspects of state and society, using terror as a primary political tool. Although the Soviet Union became an economic power, society suffered under the party's rule, with widespread repression and the use of concentration camps for dissenters.

The Spanish Civil War: A Timeline

Stage 1: Summer 1936

On July 18, 1936, a military uprising led by Franco spread across the peninsula. The navy and air force remained loyal to the republic. The republican government lost control, while anarchists, socialists, and communists seized estates and industries. Both sides engaged in intense repression. The League of Nations adopted a non-intervention policy, but the republic received support from thousands of international volunteers who formed the International Brigades. Franco, on the other hand, received aid from Hitler and Mussolini.

Stage 2: August-October 1936

Francoist forces advanced through western Andalusia and Extremadura towards Madrid.

Stage 3: November 1936-March 1937

The republican government reorganized and managed to halt Franco's advance in the battles of Madrid, Jarama, and Guadalajara.

Stage 4: May 1937-April 1939

Internal struggles arose between communists and anarchists within the republic. The Francoist army advanced, isolating Catalonia from the rest of Republican Spain. The Battle of the Ebro marked Franco's triumph. Thousands of Spaniards fled to France. On April 1, 1939, Franco declared victory, ending the war.