Chapter 30 -- Part 1: The Great Depression and World War II
Israel Lichtenstein was born in Paris in 1932.
One million Jews died in the Auschwitz concentration camp, and his father was one of them.
Israel became the nation of Israel.
The years of anxiety and political maneuvering in Europe after World War I were made worse when a massive economic depression spread around the world following the American stock market crash of October 1929.
The global economy has collapsed.
The course of free-market capitalism appeared to have ended.
People all over looked for relief to new leaders.
Few liberal democratic governments survived the Second World War in Europe.
In countries such as Brazil, Japan, the Soviet Union, and others, dictatorships seemed to be the wave of the future.
The mid-twentieth-century era of dictatorship is one of the most disturbing chapters in the history of civilization.
The rise of a particularly ruthless brand of totalitarianism that reached its fullest realization in the Soviet Union, Nazi Germany, and Japan in the 1930s was the key development.
Stalin, Hitler, and Japan's military leaders ruled with unprecedented severity.
World War II began in Europe after Hitler attacked Poland.
The Japanese were encouraged to expand their campaign into the Pacific.
Millions of people died on the battlefields and in the bombed-out cities.
The Great Depression must be spelled with capital letters.
The world was hit by a long and severe economic depression starting in 1929.
The Second World War ended it.
The US stock market crash in October of 1929 started the Great Depression because economic activity was already declining in many countries.
The American stock market boom was built on borrowed money.
There are two factors that explain why.
The wealth gap between America's rich and poor reached its greatest extent in the 20th century.
70 percent of America's wealth was held by one percent of Americans.
With not enough money to go around, the remaining 99 percent of Americans had to borrow to make even basic purchases, as a result of which the cost of farm credit, installment loans, and home mortgages skyrocketed.
The 99 percent stopped buying because they couldn't borrow anymore.
Wealthy investors and speculators took more investment risks.
Buying stocks by paying only a small fraction of the total purchase price and borrowing the rest from banks was a popular risk.
It was dangerous to buy on margin.
The hard-pressed margin buyers started selling when prices fell.
The financial panic was caused by the result.
The New York stock market's crash wiped out countless investors and speculators in a matter of days or weeks, starting a domino effect that hit most of the world's major stock exchanges.
There was a worldwide financial crisis caused by the financial panic in the United States.
As panic spread in the 1920s, New York bankers began to recall their short-term loans.
Frightened citizens around the world began to withdraw their bank savings.
The collapse in world prices was accelerated by the recall of American loans, as business people dumped goods in a frantic attempt to get cash to pay their debts.
The world's output of goods fell between 1929 and 1933.
The countries tried to go it on their own.
The American example in which protective tariffs were raised to their highest levels ever in 1930 was followed by many.
The slide to the bottom from 1929 to early 1933 is probably explained by two factors.
When the crisis came, the international economy lacked leadership.
The world's economic leaders did not help the international economic system in 1929.
The United States and Britain put high tariffs on international lending.
In almost every country, governments cut their budgets and reduced spending instead of running large deficits to try to boost their economies.
Governments needed to put a lot of money into the economy to boost job growth.
John Maynard Keynes advocated a counter-cyclical policy after World War II.
Keynes's prescription was viewed with horror by orthodox economists in the 1930s.
Mass unemployment made the need for large-scale government spending necessary.
The financial crisis was caused by the 99 percent's halt in buying, which led to production cuts, which in turn caused workers to lose their jobs and have less money to buy goods.
Unemployment soared as a result of more production cuts.
Unemployment in Britain averaged 12 percent in the 1920s and 18 percent in the 1930s.
Austria had an unemployment rate of 30-32 percent in 1932.
The United States had the worst unemployment.
In the 1920s the unemployment rate was 5 percent, but in 1933 it was 33 percent and 14 million people were out of work.
Thousands of Mexican Americans were accused of stealing jobs from real Americans and hundreds of thousands of Americans were attracted to the Soviet Union because of communism.
Louisville, Kentucky, was hit by the worst flood in its history during the Great Depression.
African American flood victims are lined up for food.
The billboard message mocks the Depression-era conditions, but the smiling white family appears to be driving its car through the line of people, drawing attention to America's race and class differences.
Social problems were created by mass unemployment.
Unemployment benefits or public aid prevented starvation in most industrialized countries where poverty increased dramatically.
Millions of unemployed people lost their spirit and homes and ways of life were disrupted by personal tragedies.
We tell you that many people.
We tell you that people are going hungry.
Great numbers are being rendered distraught through the stress and worry of trying to exist without work.
Do not think that unemployment is going on forever without a catastrophe.
The Great Depression was a turning point in American history.
Herbert Hoover was a US pres.
The administration initially reacted with limited action.
When the financial crisis struck Europe with full force in summer 1931, banks failed and unemployment soared.
Industrial production fell to less than half of its 1929 level in 1932.
Roosevelt's goal was to reform capitalism.
Roosevelt was against socialism and government ownership of industry.
His commitment to national relief programs marked a shift from the traditional stress on family support and local community responsibility.
Roosevelt had a plan to reform capitalism in the United States.
Roosevelt created new federal agencies that launched a lot of public works projects so the federal government could directly employ as many people as possible.
The Works Progress Administration employed one-fifth of the entire U.S. labor force at some point in the 1930s, and these workers constructed public buildings, bridges, and highways.
The U.S. established a national social security system in 1935.
Collective bargaining was declared to be U.S. under the 1935 National Labor Relations Act.
Between 1935 and 1938 government rulings and social reforms stripped away the privileges of the wealthy and tried to help ordinary people.
The New Deal was only partially successful in its response to the Great Depression.
Unemployment was 10 million when war broke out in Europe.
Only the Second World War was able to pull the United States out of the depression after the New Deal brought fundamental reform.
Germany and Great Britain were hardest hit by the economic downturns that followed the collapse of the American stock market.
Europe emerged from the Great War in debt and in need of investment capital to rebuild.
The United States was the primary creditor.
Britain repaid its war debts and investment loans to America after Germany borrowed money to pay for war.
The circular system crashed when the American economy crashed.
The countries under socialist leadership were the most successful in responding to the Great Depression.
When the economic crisis struck in 1929, Sweden's socialist government pioneered the use of large-scale deficits to finance public works projects.
Social welfare benefits were increased by the governments.
The spending required a large bureaucracy and high taxes.
Both private and cooperative enterprise flourished.
The middle way between capitalism and communism was considered appealing by some observers.
The Conservative-dominated coalition government followed orthodox economic theory after 1931 in Britain.
The budget was balanced, but not enough welfare support was given to the unemployed workers.
The gradual reorientation of the British economy resulted in the recovery of the economy after 1932.
Britain focused on the national rather than the international market.
New industries such as automobiles and electrical appliances grew as old industries such as textiles and coal continued to decline.
The Great Depression came late to France as it was less industrialized and more isolated from the world economy than Britain, and these developments encouraged British isolationism.
It stayed after the depression hit.
Mussolini's Italy and Hitler's Germany were used as inspiration by the latter groups.
Stalin's Russia was looked to by the Communist Party and many workers.
The Communist, Socialist, and Radical Parties in France formed an alliance to fight against the right-wing dictatorships of Hitler and Mussolini.
A New Deal-inspired program of social and economic reform was launched by the Popular Front government after its clear victory.
Popular with workers and the lower middle class, these measures were sabotaged by rapid inflation, rising wages, and cries of socialist revolution from frightened conservatives.
The Popular Front lost many left-wing supporters when it failed to back the republican cause in the Spanish Civil War, while Hitler and Mussolini supported Franco's nationalists.
The Popular Front collapsed in June of 1937.
The New Deal-inspired program of social reform was launched by a party formed in 1936 in France.
The United States enacted a tax on imported goods in June 1930.
Lawmakers thought that this action would force Americans to buy American products, which would revive American businesses and increase employment.
The United States was a member of the global economy and depended as much on exporting goods as on imports.
The effect of the tariffs was to reduce America's international trade and to cause other countries to follow suit, further depressing international trade.
Great Britain faced a financial crisis when the Great Depression hit.
Conservative members of Parliament won a general election in 1931.
The tariffs on all imports were introduced by the Conservativeled government at a rate of 10 percent.
The 1931 British general election campaign poster depicts crates and bags of foreign goods being unloaded on English docks.
The tariffs would block foreign goods when the Conservatives won.
The Great Depression's effect was felt well beyond Europe and the United States.
The implementation of protectionist trade policies by the leading industrial nations had devastating effects because many countries and colonies in Africa, Asia, and Latin America were nearly totally dependent on one or two commodities for income.
Latin America's commodity economies were hard hit by the Great Depression.
Latin American countries were unable to buy industrial goods from abroad.
After the global depression, governments began to gain control of their own economies and natural resources.
The efforts were successful.
In the late 1940s, factories in Argentina, Brazil, and Chile were able to satisfy domestic consumer demand for the products of light industry.
The economic conditions in Latin America gave rise to dictatorships, some of which were modeled on European Fascist lines.
The Great Depression was a turning point in the development of African nationalism.
African educated people faced widespread unemployment for the first time.
African peasants and small business people who had been drawn into world trade, and who sometimes profited from booms, also felt the economic pain.
Mass protest was unprecedented in some areas.
The consequences of the Great Depression were not as serious for Asians as they were for other people.
It was often severe where the depression hit.
Between 1929 and 1932, the price of rice fell by two-thirds.
Asia has a heavy dependence on raw material exports.
When the Great Depression hit China in the early 1930s, it hit the rural economy the hardest because of debts to local moneylenders fixed in value and taxes to colonial governments.
Cheap foreign agricultural goods, such as rice and wheat, were dumped in China, while China's economy depended heavily on cashcrop exports.
After 1931, Chinese industrial production dropped off.
Ultranationalists and militarists in Japan called for less dependence on global markets and the expansion of a self-sufficient empire after the Great Depression.
The expansion began in 1931 when Japan invaded Chinese Manchuria, which became a major source of the raw materials needed to feed Japanese industrial growth.
The government and large corporations were blamed for the economic downturn despite the fact that Japan recovered quickly from the Great Depression.
By the mid-1930s this lack of confidence, combined with the collapsing international economic order, Europe's and America's increasingly isolationist and protectionist policies, and a growing admiration for Nazi Germany and its authoritarian, militaristic model of government, had led the Japanese military to topple
James Keir Hardie was the first Socialist member of the British Parliament and the founder of the British Labour Party.
Changing the system of production and making it a means of providing for the healthy human need of all the people is something that must be looked at by the working-class itself.
Unless they set themselves to win Socialism, it can never be done.
It's a People's Cause, in the fullest sense of the phrase.
When it has been won, it will be their fight which has won it; should it never be won, and should our Western civilization totter on until it falls into the depths of oblivion.
With growing clearness of vision, the worker begins to see that he will remain a menial and lonely worker until he becomes a master of the machine he tends and the soil he tills.
The typical Socialist is not a ferocious looking workingman with greasy overalls and a loud voice.
He is either a youthful snob-Bolshevik who in five years' time will have made a wealthy marriage and been converted to Roman Catholicism; or, still more typically, a prim little man with a white-collar job, usually a secret teetotaler.
There is also the horrible.
A genuine working man is rarely or never a Socialist.
He is very likely to vote for Labour or even Communist if he gets the chance, but his conception of socialism is different from that of a book-trained Socialist.
In 1907 and the 1930s, Hardie and Orwell wrote about socialism in Great Britain.
The Copyright was renewed by the Estate of Orwell.
Permission was granted by the publishing company.
All rights belong to the person.
The 1920s and 1930s saw the emergence of both conservative and radical dictatorships.
They were profoundly different in their character and practice.
Conservative authoritarianism was the traditional form of antidemocratic government.
Like Russia's tsars and China's emperors, the leaders of such governments relied on police departments and armies to control society.
They banned or limited popular participation in government.
They didn't have the desire to control many aspects of their subjects' lives.
The people enjoyed personal independence if they didn't try to change the system.
In Latin America, conservative authoritarianism came back after the First World War.
In Spain, Portugal and the eastern part of Europe, dictators seized power.
There were many reasons for this development.
Many new states, such as Yugoslavia, were torn by ethnic conflicts and lacked strong traditions of self-government.
Dictatorship appealed to nationalists and military leaders to suppress tensions and preserve national unity.
The church and large landowners were still powerful forces in these areas and often looked to dictators to protect them from progressive land reform or Communist agrarian upheaval.
Conservative dictatorships were more concerned with maintaining the status quo than with changing society.
The Soviet Union, Germany, and Italy had a new kind of dictatorship called a "totalitarian" by the mid-1930s.
The definition of totalitarianism, its origins, and what countries and leaders should be considered should be decided by scholars.
In the 1960s, liberals used the term more casually to refer to every system they felt stifled freedom from.
The term's usefulness was questioned by many scholars.
In the 1920s, 1930s, and 1940s, scholars returned to the term to explain and understand fascist, Nazism, and communism.
This provided a model for the future.
A dictatorship that exercises complete political power and control over all aspects of society seeks to mobilize the mass for action.
The Versailles treaty and the economic and political problems that Germany and Italy faced in the 1920s left both countries ripe for new leadership, but not necessarily dictators.
The Great Depression was the cause of the modern state.
There were some major differences between Stalin's Communist Soviet Union and Hitler's Nazi Germany.
Soviet communism wanted to level society by crushing the middle classes and seized private property for the state.
The middle classes survived because the Nazis did not try to nationalize private property.
Most European countries had Fascist sympathizers in the 1920s and 1930s.
General Francisco Franco's Fascist nationalist forces fought a brutal war against the government of Spain's Second Spanish Republic between 1936 and 1939.
Franco ruled Spain for thirty-six years after the nationalist victory.
The Soviet Communists wanted to unite the workers of the world.
Both Mussolini and Hitler used the term "fascist" to describe their movements.
The ideologies of the Communists and Fascists clashed and they were enemies.
A movement characterized by extreme, often expansionist nationalism, anti-socialism, a dynamic and violent leader, and glorification of war and the military.
European Fascist movements had many characteristics, including expanionist, nationalism, anti-socialism, a crushing of human individualism, alliances with powerful capitalists and landlords, and glorification of war and the military.
In Germany, fascists embraced racial homogeneity.
While class was the driving force in communist ideology, race and racial purity were important to Nazi ideology.
Most recent scholars don't agree with the label of Fascist society.
Hitler's desire for eastward expansion was one of the Fascist ideas that Japanese political philosophers were attracted to.
Nationalism, militarism, the corporatist economic model, and a single, all-powerful political party were appealing concepts.
The emperor's divine status clashed with the idea of a Japanese dictator.
Ultranationalism, militarism, reverence for traditional ways, emperor worship, and profound changes to Japanese society began with the Meiji Restoration in 1867.
Before the Second World War, these contributed to the rise of a Fascist state.
The concept of totalitarianism is useful for historical understanding.
In the 1930s, Germany, the Soviet Union, and Japan made an "unprecedented claim" on the beliefs and behaviors of their citizens.
THe idea of totalitarianism is never fully achieved.
Stalin consolidated his power after Lenin's death in 1924, and by 1927 he was the leader of the Soviet Union.
The first five-year plan was launched in 1928 to transform Soviet society along socialist lines and to generate a Communist society with new attitudes, new loyalties, and a new socialist humanity.
Stalin and the Communist Party created a modern totalitarian state in the 1930s with constant propaganda, sacrifice, and violence.
The goal of the "revolution from above" was to modernize the Soviet Union and create a Communist society with new attitudes, new loyalties, and a new socialist humanity.
By the spring of 1921, the civil war had ended and the land had been devastated.
Facing the worst famine in generations, riots by peasants and workers, and an open rebellion by previously pro-Bolshevik sailors.
Peasant producers could sell their surpluses in free markets.
The railroads, banks, and heavy industry were all nationalized.
In an attempt to rebuild agriculture and industry in the face of economic decline, the Soviet Union re-established limited economic freedom in 1921.
The NEP was successful both economically and politically.
It was a temporary compromise with the Soviet Union's peasant majority.
Industrial output surpassed prewar levels, and peasants produced almost as much grain as before the war.
An intense power struggle began in the Communist Party's inner circles after the economy recovered.
Stalin and Leon Trotsky were the main competitors.
Stalin won because he gained the support of the party, the only genuine source of power in the one-party state.
Between 1922 and 1927, Stalin achieved absolute power.
He used moderates to destroy Trotsky and then used moderates again to destroy the moderates.
The party congress of December 1927 condemned all deviation from the general party line as Stalin's final triumph.
The end of the NEP was marked by the 1927 party congress.
The economic objectives of the first five-year plan were staggering.
In five years, industrial output was to increase by 250 percent and agricultural production was to increase by 150 percent.
By 1930 economic and social change was sweeping the country in a frenzied effort to change the lives of ordinary people.
One worker was upset.
The ration is only given to the worker, his wife and small children don't get anything.
The workers and their families wear clothes that are worn out and the kids are in rags.
Stalin and Lenin were both deeply committed to socialism.
Stalin wanted to catch up with the hostile Western capitalist nations.
It is sometimes asked if it is possible to slow down the pace a bit.
Falling behind is what slacken the tempo would mean.
Those who fall behind are beaten.
We are a long way behind the advanced countries.
We need to make good this distance in ten years.
The peasant problem was domestic.
For hundreds of years peasants wanted to own the land.
The Communists believed that the peasants would become conservatives and threaten the regime.
Stalin launched a preventive war against the peasants to bring them under state control.
The forcible consolidation of individual peasant farms into large, state-controlled enterprises was the cause of that war.
In 1929 peasants were ordered to give up their land and animals and join a collective farm.
Stalin told party workers to eliminate the kulaks as a class.
Stalin consolidated individual peasant farms in the Soviet Union into large, state-controlled enterprises.
Villages were often attacked.
Disaster was caused by forced collectivization.
Many peasants burned their crops in protest.
State-controlled farms were not more productive.
Stalin wanted to destroy all expressions of Ukrainian nationalism and break the will of the Ukrainian peasants so they would accept collectivization and Soviet rule.
The purge of the intellectuals and political elite began by Stalin.
He set too high a quota for the collectivized farms.
Stalin's and the Soviet government's policies have been declared a deliberate act of genocide by many scholars and governments.
Grain supplies were sufficient to meet everyone's needs.