A Fragile Balance: Europe in the Twenties SSWH17:b.

1. A Fragile Balance: Europe in the TwentiesSSWH17:b.

2. Time and Geography

4. POLITICAL

5. Political Diversity • Rapid democratization of politics • Political parties no longer defined by class • Property no longer dictated political affiliation • Liberal/conservative division no longer made sense • Parties representing single interest group were defeated by parties with diverse membership

6. ECONOMIC

7. John Maynard Keynes • Most influential economic theorist of 20th C • Governments to lessen swings of business cycle by pumping new money into credit system • Then owners, investors could get credit to build new enterprise John Maynard Keynes

8. John Maynard Keynes • Increased tax revenues would repay government expense and prevent inflation • Grow economy with some inflation was attainable and desirable

9. Keynesian Economics • His ideas only tried after 1945 • “Pump priming” became standard procedure • To get money, governments must borrow from citizens or inflate currency Keynes ideas were tried after WWII

10. Keynesian Economics • Debate over workability of his ideas • Has contributed to long term inflation • Revival of free-market theory and practice • Partnership of government and business

11. Marxist Successes and the Soviet Illusion • Flourishing of a Leninist version of the Marxist gospel • Appealed to all social groups and classes: workers, intellectuals, artists all over the world who felt: • capitalism had failed; its day was done; page had to be turned • 1920s saw new communist parties in industrial countries and colonies

12. Marxist Successes and the Soviet Illusion Soviet Illusion of progress and equity: • Idea that the inexperienced and incompetent “Reds” of revolutionary Russia could turn the USSR into an industrial great power • What had been done in backward, isolated Russia, must and would be done in the rest of the world Communism is enticing in theory, but oppressive in execution

13. POLITICAL

14. Totalitarian Government • Totalitarianism– 20th C phenomenon • Totalitarian: to impose total control over public life, intervene in private lives • Loyalty to leader or his political party, dissent is treason • Product of World War I: new government controls, sacrifice of freedoms Benito Mussolini and Adolph Hitler

15. Totalitarian Government • Five characteristics • Redefined or obliterated boundaries between public and private affairs • State would become extension of Leader’s will • Single mass party is only one allowed • No need for political competition or discussion • Collective is everything, individual is nothing

16. Anti-rationalism • Deliberate turning away from reason – instinct over logic • Outgrowth of 19th C cult of violence, idea that life in trenches of World War I showed authentic human nature • Struggle was key concept • Victory was always conditional – new enemy was lurking, had to be constantly on guard • Action was necessary, but not knowing why it was necessary

17. Italian Fascism and Mussolini • Il Duce – leader, Benito Mussolini • First example of attempt to establish totalitarian government – blend wartime techniques of government with appeal to nationalism and resentments • Italy was in trouble: workers unhappy, economy in shambles Benito Mussolini

18. Italian Fascism and Mussolini • Fascist party grew quickly – fear of communism, frustrated nationalism, accumulated resentments • 1922 Mussolini got king to appoint him as premier – became known as the March on Rome • He ruled semi-legally until 1924, rigged elections, formed one-party state Benito Mussolini

19. Fascist Economic and Social Policies • Economics were blend of socialism-without-Marx and laissez-faire • State played larger role than before • Organized labor became arm of the government • Avoided or lessened class struggles From 1925, Mussolini styled himself Il Duce (the leader).

20. Fascist Economic and Social Policies • Mussolini was very popular, charismatic • People believed in his efforts to make Italy a major power • He promised action to benefit common people • Did deliver benefits: highways, vacation leave etc • True masters of totalitarianism were in Germany and Soviet Russia Mussolini in his early years in power

21. Germany in the Postwar Era • Weimar Republic • New government came under fire immediately, forced to accept hated Versailles Treaty • Government also threatened by attempts to spread Bolshevik revolution • 1919 adopted new Weimar Constitution: liberal, democratic, but unpopular

22. Germany in the Postwar Era • Reparations • French demanded Germany bear full financial responsibility for war damages • Bill was $33 billion – would have bankrupted whole banking system • Germany tried to get moratorium, but France occupied territory to take wealth as payment Man going to buy bread.

23. Inflation and Middle Class Ruin • Inflation ruined many middle class people • Money was literally not worth value of paper it was printed on • Many people reduced to begging, stealing One-million mark notes used as notepaper, October 1923.

24. Inflation and Middle Class Ruin • Inflation ended by government loan - putting value behind paper currency • Dawes Plan eased burden of reparations, spread over long time • People were looking for new solution to impose order in chaos 50-million mark banknote issued in 1923, worth approximately one US dollar when issued. Nine years earlier, 50 million marks would have been worth approximately 12 million US dollars. Within a few weeks, inflation made the banknote practically worthless.

25. Eastern Europe • Almost all Eastern Europe was held in dictatorships • Poland: no democratic tradition, economic problems • Hungary: lost half its territory, population, bitter nationalism • Romania: prewar monarchy and two parties were corrupt, not representative • Yugoslavia and Bulgaria: bourgeoisie controlled parliament; many ethnic and religious minorities • Fear of Bolshevism was intense everywhere • Most pressing problem still was subsistence agrarian economies • Nationalism influenced by irrendentism – idea of splitting away from one country to join neighboring one with same ethnicity

26. Britain • Britain and France did not suffer as badly • No destructive inflation • Much deeper democratic roots • Most serious problems were economic: unemployment and reduced availability of capital • Unemployment caused by several factors • Lack of enough markets to absorb industrial production • Merchant marine not as profitable as before • Serious competition from U.S., Japan • Decline of capital invested in Britain and elsewhere • Falling behind in technology • Labour Party rose to power • Non-Marxist socialists, elected in 1924 • Great hope for it, but was no more successful than other parties

27. France • Well-balanced national economy • Seriously weakened by loss of 1.5 million men in war, $23 billion in material damages • Afraid of powerful Germany on its borders, but determined to never have another bloodbath like World War I

28. The United States • Series of conservative Republican administrations • General feeling that Europeans not grateful for U.S. help in war, not paying back loans as they should • Fundamental domestic changes taking place • Commerce, industry dominated by corporations • Expanding consumer economy • Profited greatly from war involvement, suffered relatively little damage • Became prime creditor nation, leader in finance, technology, trade

29. Society and Economy

30. International Relations on the Eve of the Great Depression • Considerable hope that war had become obsolete • French becoming more cooperative • Locarno Pact allowed Germany to join League; Russia joined • Disarmament conferences held • Increasing investment flow from U.S. to Europe • By 1928, Europe on route to full economic recovery • Reparations back on schedule • Germany becoming prosperous • France, England began paying back their loans to U.S. • Unemployment under control • Less sense of urgent danger from Russia

31. REVIEW

32. Discussion Questions 1. Consider the two concepts of 17th century absolutism and 20th century totalitarianism. How are they similar? How do they differ? Using the book’s definition of totalitarianism, what regimes in the world today fit that definition? Explain why. 2. Do you think it was right or correct to saddle Germany with the blame for causing World War I? Who “started” the war? Why did Germany get blamed? Had they not been hit with that guilt and responsibility, how do you think the interwar period might have been different? Why?