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The Rise of Fascism

The Rise of Fascism. Last of Absolute Monarchs. The last of the European Absolute monarchies are ended due to WWI. Kaiser Wilhelm II Czar Nicholas II Emperor Franz Josef and Karl I. New Democracies of Europe. Parliamentary governments with many parties Coalitions of parties are short lived

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The Rise of Fascism

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  1. The Rise of Fascism

  2. Last of Absolute Monarchs • The last of the European Absolute monarchies are ended due to WWI. • Kaiser Wilhelm II • Czar Nicholas II • Emperor Franz Josef and Karl I

  3. New Democracies of Europe • Parliamentary governments with many parties • Coalitions of parties are short lived • Hard to focus on long term goals • Resulted in weak leadership

  4. Germany During the Weimar Republic • Est. 1919 at end of WWI after Kaiser Wilhelm II abdicates the throne • Born in defeat • 1ST act was to sign the Treaty of Versailles

  5. Weaknesses of the Weimar Republic • No tradition of democracy in Germany • 7 major political parties and multiple minor ones • Weimar government, not the Kaiser, had signed the Treaty of Versailles • Germany had not raised taxes during the war, leading to a weakened economy after the war

  6. Slight Economic Recovery After WWI • Dawes Plan- $200,000,000 from American banks to help stabilize European economies • Small boom in European economies based on the American economy and investment • Roaring 20’s

  7. Stock Market Crash • Oct. 24, 1929- Black Thursday • Great wealth in stocks disappears in 1 day

  8. Overproduction and Under Consumption • Top 5% wealthiest Americans earning 1/3 of all income in the US • To increase profits, this wealthy minority increases production of goods • Majority of Americans are too poor to buy these consumer goods without CREDIT

  9. Overproduction and Under Consumption • Under consumption leads to cuts in production • Cuts in production leads to layoffs • Layoffs mean fewer can buy products, which leads to further cuts in production • Layoffs mean fewer can pay off debts from credit used to buy consumer goods

  10. Farmers • During WWI, Europe’s farms were battlefields and Europe’s farmers were soldiers • US farmers had overproduced during WWI to meet European demand • US farmers had improved farms, buying more land and machines, or switched to cash crops assuming consumption levels would remain stable • US farmers had bought land and machines on credit • As Europe begins to farm again after WWI, prices drop. Grain hits lowest prices in 400 years.

  11. The Banks Begin To Fail • When the economy starts to go down, more and more people can’t pay back debts from credit they took • As debts aren’t paid, banks start to fail • As banks fail, people start to panic and pull their money from the banks • Banks had invested deposit money and could not cash all deposits when called

  12. The Great Depression • American banks fail • US investment in Europe stops • European economy begins to fail • Depression spreads world wide • Only one major world power doesn’t experience the Depression

  13. Economic Depression in Germany • US loans stop, causing German economy to collapse • German factories stop production and fire workers • Banks close • 40% unemployment by 1932

  14. Hyperinflation • 1918-1923 Drastic increase in inflation in Germany • 1918 price of bread- 2 Marks • Dec. 1921 price of bread- 40 Marks • Dec. 1922 price of bread- 1500 Marks • Summer 1923 price of bread- 4,000,000 Marks, 1 beer is 2,000,000 Marks • Upper classes not as affected because price of land and factories rise with inflation, but salaries can’t keep up

  15. Economic Situation Makes Hitler Popular • Nazi Party is largest political party by 1932 • January 1933- Hitler is named Chancellor by German President • As Chancellor, Hitler calls for parliamentary elections

  16. Reichstadt Fire • The night before parliamentary elections, the Reichstadt is set on fire. • Hitler blames the communists, the main competition for the Nazis in the election, for the fire. • Nazis win a majority in parliament

  17. Nazi Dominated Parliament • Passes Enabling Act which gives Hitler absolute power for 4 years. • Hitler has risen to absolute power through the democratic system of the Weimar Republic.

  18. Lack of Faith in Democracy • Because of Great Depression, many had lost faith in the new democratic governments of Europe (and elsewhere). • Some support Communism (why?) • Many others support Fascist leaders

  19. Fascism • Strongly Nationalistic- nations must struggle/Social Darwinism • Belief that each class had a function in society. Individuals must struggle , just as nations must. Those who deserve to, will rise to the top. • Allied themselves with aristocrats and industrialists. Fascism legitimized these groups place of privilege in society and didn’t threaten this privilege as communism did • Autocratic Government • State is more important than the individual

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