World War I, Russian Revolution, and the 1929 Crash

World War I: Factors and Causes

• The rise of new capitalism
• Strong competition between nations
• Economic and national rivalries created tensions
• The start of a change in policy: Weltpolitik
• No single cause or responsibility, but Germany played a significant role
• The state took enormous economic powers aiming to win the war
• A ground-up economy focused on war, with coordinated planning between governments and private firms
• Paper-war propaganda and censorship were opposed to freedom of expression
• Contending countries were members of the Triple Alliance and Triple Entente.

Treaty of Paris

Representatives of 27 countries met to establish a new world order.

• Approaches clashed from the outset.
• The vanquished were invited to sign the stipulations, which they reluctantly accepted, especially Germany.

Starring: Wilson (USA), David Lloyd George (British), Vittorio Orlando (Italy), G. Clemenceau (France)

• The Treaty of Versailles imposed heavy reparations.
• The Treaty of Saint-Germain territory was reduced to the current limits without the possibility of joining Germany.
• The Treaty of Brest-Litovsk led to the creation of two new nations: Czechoslovakia and Yugoslavia.

Russian Revolution

Throughout the nineteenth century, economic reality and ideological social policy had been very complex due to feudal characteristics alongside other capitalist elements.

Revolution of 1917

Causes: Entry into the war caused food shortages and high prices, creating widespread discontent and protests demanding the cessation of war.

Phases:

• February 1917: Revolution begins with strikes and raids, forming a government with the aim of convening a constituent assembly.
• July 1917: A new Bolshevik insurrection occurs. Kerensky, the 1st minister, is appointed and tries to carry out important reforms.
• October 1917: Bolshevik Revolution. Bolsheviks stage a coup, and more than half of the Soviets approve the coup, assume power, and take a set of urgent measures.

The Crash of 1929

Causes: The 1929 crash (stock market collapse) occurred, leading to a depression in a few months.

The economy differentiated between the real economy (proper conduct of business) and the financial economy, which reflected the price of listed shares.

• Overproduction: A gap between agricultural and industrial prices, low wages, poor distribution of income, and loss of purchasing power for farmers due to lower prices.
• Speculation: Quick and easy means of obtaining money by buying shares of stock whose price rose every day over the actual value.

Crack 1929