Interwar Years: 1920-39

Interwar Years: America America had a lot of

money! Avoided the destruction

that Europe experienced during WWI

Made a lot of money helping to rebuild Europe Made massive loans to

France, England & Germany

Why not Soviet Union? Poised to become a

world power But isolationist urge

strong

Interwar Years: Great Britain

At the end of WWI, the British Empire was at its greatest extent

They took over Palestine, Iran & Iraq from Ottoman Empire

BUT Britain was dramatically changed 2.6 million casualties Women entered workforce Inflation hurt people on

fixed incomes

Interwar Years: France 6.97 million casualties

Political desire to avoid another war with Germany, at any cost

“Appeasement Policy” France didn’t protest

when Hitler violated the Versailles Treaty

Built Maginot Line along German-French border Elaborate system of forts

to protect against German attack

Interwar Years: Germany

Germany’s new government = Weimar Republic Democratic republic with an

elected president and parliament, the Reichstag

Government was blamed for losing WWI and the Versailles Treaty

Economic problems Couldn’t pay war reparations In 1923, France occupied Ruhr

industrial region But by 1928, Germany’s

economy had recovered to 1913 levels

Interwar Years: Japan After WWI, militarism,

racism and nationalism became powerful forces in Japan

Began establishing their empire Korea, 1904-05 German colonies in

Pacific, WWI Manchuria, 1931 China invaded, 1937

League of Nations Created out of Versailles

Treaty Goals

Disarmament Prevent war through

collective security Settle disputes diplomatically

League had no military force of its own (Great Powers)

Incapable of preventing aggression, during 1930s

Member states = 44, including UK, France, Italy

But NOT USA

Worldwide Economic Problems Wages were not keeping

up with inflation Falling crop prices hurt

Europe’s recovery Economic Nationalism

Tariffs were high That meant European

countries couldn’t sell to US, each other

High inflation + high tariffs meant European countries couldn’t afford US goods

The Great Depression, 1929-39 Causes

Inflation (prices up) Wage stagnation High debt levels of

individuals & business (interest payments)

Businesses began to fail = unemployment = less $ being spent = more business fail

International trade declined due to high tariffs

NY Stock Exchange collapsed on 10/29/29 (Black Tuesday)

Great Depression Worldwide effect

Prices and wages plummeted

Unemployment skyrocketed

Germany stopped payments to allies

European countries stopped interest payments to US

US banks began closing as people demanded money from them

Effects of Great Depression America raised tariffs, cut off

Europe from loans British raised tariffs,

increased trade within Empire

French weren’t as industrialized, so less effect; but political unrest was high

Germany’s Weimar Republic died Inflation made $ worthless;

currency was worth more as bulk paper

Strengthened National Socialist German Workers Party (Nazis)

Results of the Interwar Years Dictatorships rise to power during the 1920s-1930s · people are desperate for strong leadership during

the Depression · Treaty of Versailles failed to establish lasting peace 1922 Mussolini establishes fascist dictatorship in

Italy 1920s Joseph Stalin's communist dictatorship in the

Soviet Union (U.S.S.R.) 1931 Japanese establish militaristic fascist

dictatorship 1933 Adolf Hitler fascist dictatorship in Germany

(The Third Reich)