Key Events: WWI and the Great Depression
World War I (1914-1918)
Causes and Tensions
Armed Peace and the Arms Race
The tension between different countries led to an arms race, beginning around 1890 and escalating until 1914.
The Balkans Situation
There were clashes in the Balkans as the Ottoman Empire declined. Austria-Hungary sought influence, and Russia also aimed to expand its interests in the region.
Major Alliances
- Triple Alliance: Germany, Austria-Hungary, and Italy
- Triple Entente: France, Russia, and the United Kingdom
Key Military Aspects
Early War Movements
The Germans attempted to achieve a quick victory over France using the Schlieffen Plan, but their advance was ultimately halted.
Important Battles
- Battle of the Marne: The German advance was stopped just kilometers from Paris (September 1914).
- Battle of Tannenberg: Following a French request for a Russian offensive to relieve pressure, Russian troops attacked in the East but were decisively defeated by Germany. This action, however, diverted German forces from the Western Front, indirectly helping save Paris.
War of Position (Trench Warfare)
The goal became defending territories using defensive tactics involving trenches and machine gun nests.
Major Battles of Attrition
- Battle of Verdun: A major German offensive (February 1916).
- Battle of the Somme: A large British offensive resulting in heavy casualties (July 1916).
Turning Points and Consequences
Events in Russia (1917)
A revolution dethroned the Tsar and established a communist government.
United States Entry into the War
The US entered the war after Germany sank ships like the Lusitania (1915) and the Sussex (1916), and resumed unrestricted submarine warfare.
Why Called a World Conflict?
It was an international conflict involving many nations and resulting in widespread death.
Victims and Societal Impact
Most casualties were young men. The war also led to significant impacts on civilian populations and women.
Organization of a War Economy
Countries implemented state control over production, trade, and resource allocation to support the war effort.
Role of Women in the Workforce
With men away fighting, women filled many jobs previously held by men, contributing significantly to the labor force.
The Peace Settlement
Terms Imposed on Germany
The victorious powers imposed terms, including Germany losing colonies and territories, which were often transferred to France and the United Kingdom.
Economic Consequences
Germany and its allies were required to pay very high reparations.
Political Consequences
The League of Nations was formed in 1920.
Demographic Consequences
The war resulted in an elevated death toll.
The Crisis of 1929
Causes
- Overproduction: Economies that had focused on war production returned to consumer markets, leading to a surplus of products.
- Speculation: Economic euphoria and the availability of credit at low interest rates encouraged speculation, particularly in the stock market.
- Speculative Bubble: Based on confidence, this bubble grew until it burst, triggering the stock market crash.
Consequences
- Unemployment: The crisis caused a reduction in consumption and the collapse of many businesses, leading to mass unemployment.
- Reduced Credit: Banks reduced lending, which exacerbated the crisis and allowed it to spread more easily.
- Repatriation of Capital: US banks began recalling capital provided through plans like the Dawes Plan. This caused the crisis to spread throughout Europe, particularly impacting Germany and Austria.
Responses
The New Deal
This was a program in the United States that involved greater state intervention in the economy.
Is the 1929 Crisis Similar to Today?
Yes, due to factors like inflated bubbles, falling consumption, and reduced bank lending.
Political Climate
Right-wing parties often supported the middle and bourgeois classes and opposed communist revolution. Communist parties supported workers and peasants, advocating for a model based on the Soviet Union.