Economy During the Interwar Period

The Great Depression

Germany could not afford to pay the reparations they owed as a result of the Treaty of Versailles, so the government printed more money causing inflation.
Inflation: General rise in prices and fall of the value of money.
The Great Depression was the international economic crisis following world war one.
Causes of the Great Depression included:
- United States stock market crash.
- Agricultural overproduction.
Germany suffered from bank failures caused by American investors withdrawing.
Africa, Asia, Latin America, and Japan all depended on the imperial countries’ economies, thus suffered from their downturns.
Deficit Spending: Action of spending more than the government takes in. British economist John Maynard Keynes suggested the strategy to stimulate economic activity.
The New Deal: FDR’s set of domestic policies for relief of citizens suffering from the Great Depression.'
The Great Depression finally ended when the U.S. joined WW2 and raised military spending.
As unemployment increased rapidly across the world, trade declined.
Japan made it out of the depression quickly through lowering the value of their money.

Political Revolutions in Russia and Mexico

Russian Civil War (1918-1921): Russian and Ukrainian revolts and strikes against the Russian government.
Russian economy collapsed due to drops in industrial and agricultural production.
Lenin New Economic Plan: Temporary retreat from communism in Russia, reintroduced private trade and economic liberties.
Joseph Stalin took control of Russia’s Politburo and became a dictator.
Five Year Plan: Stalin’s plan to transform the soviet union into an industrial power.
Collectivized: Process in which farmland was taken from private owners and given to kolkhoz.
Kolkhoz: Group of peasants who freely joined together to farm a portion of land.
Russian farmers retaliated and moved to the cities.
The USSR’s brutal success posed a threat to capitalist countries experiencing unemployment.
The Institutional Revolutionary Party dominated Mexican politics in the interwar period and favored land reforms, access to jobs and education, land reforms, and improvement of infastructure.
PEMEX: This oil company became the second largest state owned company in the world.

Right Wing Governments

Germany and other countries turned to Fascism: A political system that promotes extreme nationalism, military glorification, denial of individuals rights, and putting blame on ethnic minorities.
Italy’s fascist movement was based of Corporatism: A political idea that different groups in society should take part in political decisions.
Italy imposed it’s fascist movement on everyone, becoming a Totalitarian State.
Italy was given little territory from the Treaty of Versailles.
Dictator Benito Mussolini of Italy conquered Libya, Somalia, and Abyssinia (Ethiopia), destroying the League of Nations credibility and forming an alliance with Adolf Hitler of Germany.
Spanish Civil War was sparked by the opposing ideologies in Spain, democracy and fascism.
The Popular Front: Electoral alliance in Spain, formed by left wing parties.
Nationalists led by Francisco Franco vs defenders of the new Spanish republic, the Republicans/Loyalists.
Despite a non-intervention agreement, Germany, Italy, and Portugal aided the nationalists, while the U.S, USSR, Britain, and France aided the Loyalists.
Guernica Attack: Aerial bombing on citizens in the northern basque region, exercised the German air force.
Franco and the nationalists won in 1939, and Franco ruled as dictator until his death.
Brazil had a very slow switch from agricultural to industry based economy, as a result they struggled bad from the Great Depression.
Getulio Vargas took power as president of Brazil, his actions were similar to Mussolini’s as he:
- Implemented pro-industrial policies.
- Strict government censorship of differing political beliefs.
- Hyper nationalism: Belief that one’s nation is superior over all others.
Brazil joined the Allies in WW2, causing them to also push for democratic government in their own country.

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AP World History Unit 7 - Lesson 7.4

Economy During the Interwar Period

The Great Depression

Germany could not afford to pay the reparations they owed as a result of the Treaty of Versailles, so the government printed more money causing inflation.
Inflation: General rise in prices and fall of the value of money.
The Great Depression was the international economic crisis following world war one.
Causes of the Great Depression included:
- United States stock market crash.
- Agricultural overproduction.
Germany suffered from bank failures caused by American investors withdrawing.
Africa, Asia, Latin America, and Japan all depended on the imperial countries’ economies, thus suffered from their downturns.
Deficit Spending: Action of spending more than the government takes in. British economist John Maynard Keynes suggested the strategy to stimulate economic activity.
The New Deal: FDR’s set of domestic policies for relief of citizens suffering from the Great Depression.'
The Great Depression finally ended when the U.S. joined WW2 and raised military spending.
As unemployment increased rapidly across the world, trade declined.
Japan made it out of the depression quickly through lowering the value of their money.

Political Revolutions in Russia and Mexico

Russian Civil War (1918-1921): Russian and Ukrainian revolts and strikes against the Russian government.
Russian economy collapsed due to drops in industrial and agricultural production.
Lenin New Economic Plan: Temporary retreat from communism in Russia, reintroduced private trade and economic liberties.
Joseph Stalin took control of Russia’s Politburo and became a dictator.
Five Year Plan: Stalin’s plan to transform the soviet union into an industrial power.
Collectivized: Process in which farmland was taken from private owners and given to kolkhoz.
Kolkhoz: Group of peasants who freely joined together to farm a portion of land.
Russian farmers retaliated and moved to the cities.
The USSR’s brutal success posed a threat to capitalist countries experiencing unemployment.
The Institutional Revolutionary Party dominated Mexican politics in the interwar period and favored land reforms, access to jobs and education, land reforms, and improvement of infastructure.
PEMEX: This oil company became the second largest state owned company in the world.

Right Wing Governments

Germany and other countries turned to Fascism: A political system that promotes extreme nationalism, military glorification, denial of individuals rights, and putting blame on ethnic minorities.
Italy’s fascist movement was based of Corporatism: A political idea that different groups in society should take part in political decisions.
Italy imposed it’s fascist movement on everyone, becoming a Totalitarian State.
Italy was given little territory from the Treaty of Versailles.
Dictator Benito Mussolini of Italy conquered Libya, Somalia, and Abyssinia (Ethiopia), destroying the League of Nations credibility and forming an alliance with Adolf Hitler of Germany.
Spanish Civil War was sparked by the opposing ideologies in Spain, democracy and fascism.
The Popular Front: Electoral alliance in Spain, formed by left wing parties.
Nationalists led by Francisco Franco vs defenders of the new Spanish republic, the Republicans/Loyalists.
Despite a non-intervention agreement, Germany, Italy, and Portugal aided the nationalists, while the U.S, USSR, Britain, and France aided the Loyalists.
Guernica Attack: Aerial bombing on citizens in the northern basque region, exercised the German air force.
Franco and the nationalists won in 1939, and Franco ruled as dictator until his death.
Brazil had a very slow switch from agricultural to industry based economy, as a result they struggled bad from the Great Depression.
Getulio Vargas took power as president of Brazil, his actions were similar to Mussolini’s as he:
- Implemented pro-industrial policies.
- Strict government censorship of differing political beliefs.
- Hyper nationalism: Belief that one’s nation is superior over all others.
Brazil joined the Allies in WW2, causing them to also push for democratic government in their own country.