The Interwar Years: Economic Crisis and Dictatorships (1920s-1930s)

The Great Depression: Causes and Impact

The period generally referenced as the Great Depression spanned from the stock market crash of 1929, following a decade of economic instability, until the late 1930s. The problems that led to this severe crisis include:

• Overproduction: American industry produced more goods than the population could purchase, leading to factory closures and economic stagnation.
• Falling Consumption: As companies closed down, people lost their jobs, reducing spending and overall demand for goods.
• The Wall Street Crash: Many companies whose shares were sold on the stock market began to fail and crashed in 1929. This triggered a series of protests against the government and the capitalist system that had produced the crisis.

United States Politics in the Interwar Period

The US political landscape was dominated by two major parties: The Republican Party and The Democratic Party.

In the 1920s, Republicans governed the United States, partly due to the widespread fear of Communism. However, Democrats returned to power in 1933 when President Franklin D. Roosevelt (FDR) was elected, who subsequently passed the landmark New Deal measures aimed at economic recovery and reform.

The Rise of Authoritarianism and Totalitarianism

During the 1920s and 1930s, various forms of dictatorships came to power in many countries. Authoritarian regimes are typically divided into:

• Left-wing Authoritarian Regimes: Generally anti-capitalist and aimed at restructuring society based on class.
• Right-wing Authoritarian Regimes: Typically pro-nationalist and strongly opposed to Communism and democracy.

Characteristics of Totalitarianism

Totalitarianism represents an extreme form of authoritarian rule characterized by:

• A centralized, single-party authoritarian system.
• Extensive economic and social control maintained through propaganda.
• Imposition of a single, dominant ideology and suppression of dissent.
• Militarism used for territorial expansion.

Key Totalitarian Leaders

Benito Mussolini and Italian Fascism

Benito Mussolini founded the National Fascist Party and formed paramilitary groups (the Blackshirts) that confronted workers' parties. In 1922, the Fascists organized the March on Rome. The king appointed Mussolini head of state, and Mussolini subsequently imposed a fascist dictatorship in Italy.

Adolf Hitler and Nazism in Germany

Adolf Hitler was an ex-soldier who founded the National Socialist German Workers' Party (Nazi Party). Following the 1929 crisis, the Nazis blamed Jews, Communists, and Democrats for Germany's problems. In 1932, the party won elections, and Hitler was appointed Chancellor of Germany. He proclaimed the Third Reich and imposed a severe dictatorship, eliminating opposition and sending opponents to concentration camps. He maintained control through extensive propaganda. His aggressive actions ultimately provoked the Second World War.

Stalinism in the USSR

After Lenin's death, Joseph Stalin became the leader of the USSR, developing a powerful totalitarian regime. Stalin controlled all branches of government, and the economy was centrally planned and controlled by the state.

In theory, the Soviet Union was a classless, Communist society, but enormous social differences persisted. Stalin also restricted women's rights, suppressing previous progressive measures. Women were primarily expected to marry and have children.