Interwar Period Transformations: New Deal, Fascism, Weimar

Franklin D. Roosevelt and the New Deal

In 1932, during one of the worst years of the Great Depression, Democrat Franklin D. Roosevelt won the presidential election. He proposed the New Deal, a comprehensive program designed to revitalize the economy through a series of economic and social reforms.

Key economic measures included:

• Assistance to businesses facing difficulties.
• Creation of public enterprises.
• Measures to control agricultural overproduction, including the destruction of agricultural stocks to stabilize prices.

The state also exerted control over banks, compelling them to provide low-interest loans. This encouraged employers to expand their businesses and create new jobs. These economic reforms were complemented by significant social reforms aimed at combating unemployment through a large-scale public works plan. Other social initiatives included increasing the purchasing power of workers, supporting agricultural prices, raising wages, and reducing the standard work week to 40 hours. These combined measures led to a significant revival of the U.S. economy and a notable decrease in unemployment.

The Rise of Italian Fascism

Amidst this turbulent situation, the figure of Benito Mussolini emerged. He gained prominence through the so-called Blackshirts, paramilitary groups that violently attacked labor unions and their leaders to suppress the rising labor movement. The original Fasci di Combattimento transformed into the National Fascist Party.

The party's ideology centered on establishing a strong state, guaranteeing private property, and pursuing an expansionist foreign policy. The Fascist Party garnered support from the petty bourgeoisie, along with financial backing from agricultural and industrial owners. In the elections, the Fascist Party initially secured only 22 parliamentary seats. However, in that same year, they brutally crushed a general strike.

Demonstrating his strength, Mussolini demanded that the king hand over the government and organized the infamous March on Rome. Faced with this display of power, King Victor Emmanuel III appointed Mussolini as head of government.

The Fascist Dictatorship in Italy

Following his ascent to power, Mussolini systematically implemented a process of restricting civil liberties and persecuting political opponents. After the elections, the establishment of an authoritarian regime was formally announced.

Under this new regime, the state and the Fascist Party became indistinguishable. Mussolini consolidated immense power, adopting the title of Il Duce (The Leader). All other political parties were banned, and their leaders were persecuted and imprisoned. The existing parliament was replaced by the Fascist Grand Council, a body entirely subservient to Mussolini.

Strikes were outlawed, and independent trade unions were abolished, replaced by a system of state-controlled corporations designed to manage labor relations.

Challenges of the Weimar Republic

At the conclusion of World War I, Kaiser Wilhelm II abdicated, leading to the proclamation of the German Republic, with its capital established in the city of Weimar. Germany was forced to accept military defeat and the harsh terms of the peace treaty.

The immediate postwar years plunged Germany into a severe economic crisis, marked by widespread poverty and high unemployment. The Weimar Republic faced immense challenges in this difficult economic climate. It was further threatened by both leftist revolutionary movements and numerous attempted coups from various political factions.