Interwar Era: Economic Crisis and Totalitarianism
Post-War Period (1919–1924)
After World War I, nationalism increased and new states were created following Wilson’s 14 Points (self-determination). The defeated empires disappeared and democracy expanded in Europe, including women’s suffrage. The socialist movement split and communism gained strong support among workers.
Europe suffered economic devastation: destruction, unemployment, and debt. Germany could not pay reparations imposed by the Treaty of Versailles, so France occupied the Ruhr (1923). The German government printed excessive money, causing hyperinflation, economic collapse, and dependence on American loans.
The Roaring Twenties and Economic Growth
In 1919, the League of Nations was created to maintain peace, although it was weak because the USA never joined and Germany and the USSR joined late. The Treaty of Locarno (1925) recognized European borders and improved stability.
The USA became the leading economic power and promoted the American way of life, based on:
- Mass consumption
- Credit
- Cars and household appliances
However, prosperity depended on speculation and risky bank loans, creating an unstable economic system.
The 1929 Crisis and the Great Depression
The economy of the 1920s was based on speculation in the stock market. Many people invested borrowed money and banks gave loans without guarantees, creating a financial bubble. On October 24 and 29, 1929 (Black Thursday and Black Tuesday), the New York Stock Exchange Crash occurred.
Banks went bankrupt, businesses closed, unemployment increased, and poverty spread. The crisis expanded worldwide because many countries depended on American credit, leading to the Great Depression (1930–1939), the most severe crisis of capitalism. In 1933, Roosevelt’s New Deal introduced state intervention, public works, bank control, and social assistance. Some countries responded with militarism and territorial expansion.
The Rise of Italian Fascism
After WWI, Italy was dissatisfied with the peace settlements and faced economic crisis and social unrest during the Red Biennial (1919–1920). Fear of socialism helped Benito Mussolini and the Fascist Party gain support from nationalists and the upper classes.
In 1922, the March on Rome allowed Mussolini to become prime minister, and in 1925 he established a totalitarian dictatorship. Fascism was characterized by:
- A one-party system
- Censorship and repression
- Prohibition of strikes
- Strong nationalism and expansionism
Italy invaded Ethiopia (1935) despite condemnation by the League of Nations.
German Nazism and the Third Reich
Germany suffered humiliation from the Treaty of Versailles, hyperinflation, and unemployment. The Nazi Party (NSDAP), led by Adolf Hitler, gained support, especially during the Great Depression. In 1933, Hitler became chancellor, and in 1934 Führer, establishing the Third Reich.
Nazism was a totalitarian, nationalist, and expansionist regime that eliminated democracy and controlled society through propaganda (Joseph Goebbels) and repression by the Gestapo. The Night of the Long Knives (1934) eliminated internal opponents. Anti-Semitism was central to the regime:
- The Nuremberg Laws (1935) removed Jewish citizenship and banned intermarriage.
- In 1938, Kristallnacht destroyed Jewish property.
- From 1939, Jews were forced to wear the yellow star.
Stalinism and the Transformation of the USSR
After Lenin’s death (1924), Joseph Stalin eliminated rivals such as Trotsky and became the sole leader of the USSR. He ended the NEP and introduced centralized Five-Year Plans to industrialize the country and achieve economic self-sufficiency, prioritizing heavy industry.
Agriculture was reorganized through collectivization into kolkhozes and sovkhozes. The kulaks were deported or executed, causing famines. Stalin established a totalitarian regime based on repression, purges, gulags, and control by the NKVD. Although industrial growth was significant, living standards were low and fear dominated society.