Unit 7.4 - Economy in the Interwar Period Flashcards
Major Causes (2) of the Great Depression
Agricultural overproduction and the U.S. stock market crash
Effects (4) of the Great Depression
It undermined faith in capitalism and led to increased rates of unemployment, hunger, and homelessness
How were governments essential to capitalism?
They built roads, provided schools, and regulated trade
How was Germany suffering during this time and how did it affect other countries?
WWI had been very expensive and the Treaty of Versailles, inflation, and American investors pulling out of Germany only made this worse, making it hard for Britain and France to repay wartime loans to the U.S. and the Soviet Union wouldn’t pay their debts
How could governments improve the economy?
Through deficit spending, by John Maynard Keynes, governments could spend more than what they had and stimulate trade
President Franklin Roosevelt’s “New Deal”
Using John Maynard Keynes’ ideals, his plan was to bring relief to suffering citizens (unemployed, farmers, minorities, women…), recover from the Depression, and reform to prevent this from happening again through deficit spending
Who was impacted by the GD?
It started in industrialized countries but spread to Latin America, Africa, and Asia
Impact of unemployment on international trade
Unemployment decreased, leading to a decrease in international trade and instead strict tariffs to try and protect the domestic jobs a nation still had
Russian Civil War
Hundreds of thousands of groups of people under Russian rule (ex. Russians and Ukrainians) revolt against the Russian government actions
New Economic Plan of Russia
Instituted by Vladimir Lenin, he reintroduced a bit of private trade to help Russia recover by letting farmers sell some of their products
Goals of Stalin’s “Five Year Plans”
To industrialize the Soviet Union
Collectivization
Taking farmland from private owners to be worked on by collectives (kolkhoz), pieces of land peasants were all forced to work on together.
Was Collectivization successful?
No, the seizing and redistribution of private property only enraged farmers in addition to the taking of their crops to send to the cities where life was better so they retaliated by burning crops and killing livestock.
Result of Stalin’s Fiver Year Plans
Millions of Soviet citizens died from starvation because the collectivization was a failure but they did industrialize
Gulags
Labor camps
How the PRI part of Mexico improved the economy
The Mexican Institutional Revolutionary Party improved Mexico’s economy under Lázaro Cárdenas who nationalized PEMEX, a big, formerly foreign-owned oil industry
Fascism
An anti-communist, extremely nationalistic form of government that glorifies the military and armed struggle while blaming problems on ethnic minorities, suppressing them, political parties, protests, and independent trade unions.
Corporatism
A theory where sectors of the economy, the employers, trade unions, and government officials are all seen as separate organs of the same body. They are free to organize themself as they want as long as they support the whole.
Totalitarian State
A state where the government controls all aspects of society
How Mussolini’s Propaganda Campaign was an Example of a Totalitarian State
Mussolini intruded on the areas of education, for example, by teaching children with militaristic propaganda about the glory of their nation and leader
The bombing of Guernica and how it was immortalized
It was one of the first aerial bombings by (Germany/Italy) targeting civilians. Picasso’s painting Guernica immortalized it.
John Maynard Keynes
British economist who rejected laissez-faire economics
What two parties was the Spanish Civil War divided between?
The forces of democracy and fascism
Hypernationalism
A belief in the superiority of one’s nation over all others leading to a focus on a promotion of only one’s own nation
