The Rise of Hitler and the Nazi Party in Germany
Adolf Hitler and the Emergence of the Nazi Party
Adolf Hitler was a demobilized soldier from the First World War. Unable to accept Germany’s defeat, he joined the National Socialist German Workers’ Party (NSDAP; Nazi Party) in 1920 and emerged as its leader. The Nazi Party used a red flag with the swastika as its emblem and had paramilitary groups: the Sturmabteilung (SA) (assault troops) and Schutzstaffel (SS) (Protection Squadron).
Hitler’s ideology was reflected in his book Mein Kampf (‘My Struggle’), in which he expressed his contempt for parliamentary democracy and his hatred of Bolshevism. He also advocated antisemitism, the superiority of the Aryan race, and the need to build a great empire (Reich) that would unite all German-speaking peoples.
To attract the working classes, Hitler used demagoguery: he promised jobs for everyone, the reduction of industrial profits, and better wages. He blamed Jews, communists, and democrats for the crisis in Germany.
Nazi militias violently opposed the Republic and were responsible for several revolts. They also clashed with left-wing organizations and presented themselves as a guarantee of social order against revolutionary unrest.
Hitler’s Rise to Power
Germany experienced a relative improvement in economic conditions between 1924 and 1929. However, the 1929 crisis caused many banks to go bankrupt, which led to factory closures, unemployment, and social unrest.
Much of the population began to support extremist parties. Ruined members of the bourgeoisie, farmers, and desperate workers were attracted by Nazi promises; intellectuals and most workers were in favor of the Communist Party (KPD).
The Nazi Party began to receive the support of important figures in industry and finance and received considerable financial assistance. In the elections of 1932, the Nazi Party won 13 million votes. In January 1933, President Hindenburg appointed Hitler as chancellor.
Hitler called new elections in March 1933 to win a parliamentary majority. During the campaign, Nazi squads started a fire in the Reichstag (parliament) and blamed it on the communists. The fire served as a pretext for Hitler to remove his opponents and demand full powers.
In 1934, following the death of Hindenburg, Hitler declared himself Führer (leader) and Chancellor of the Third Reich.
The United States: From Prosperity to Crisis
The Roaring Twenties
Economic growth in the United States continued for the decade following the end of the war (1918-1929). It was the decade of prosperity, the Roaring Twenties, in which the American way of life and the values that underpinned it (initiative, individual effort, and success), which guaranteed the wealth and well-being of its citizens, became a model for the whole world.
Economic growth was based on a comprehensive transformation of goods manufacturing processes, which were dominated by technical innovation. Taylorism and Fordism helped increase productivity and reduce costs. The rise in workers’ wages, advertising campaigns, hire purchase (payment for something in regular amounts), and bank loans paved the way for an era of mass consumption.
This prosperity was reflected in a huge stock market boom. The profits from good business led to a rise in demand for shares, whose value rose steadily.
The Paradox of Prosperity
The period of prosperity in the 1920s did not benefit everyone equally, and a series of events between 1926 and 1927 led to a crisis.
Agricultural prices were increasing less rapidly than industrial prices, and many farmers, who had borrowed money to acquire new land and machinery and thus increase production, realized that the market could not absorb all their production. Stock accumulated, prices fell, and many farmers, who were unable to pay back their loans, lost everything they owned.
Traditional industries stagnated, and entire regions missed out on modernization. The rise in wages was much lower than corporate profits and production, and people had little purchasing power. Overproduction was becoming a problem for the US economy.
The Wall Street Crash of 1929
Many shareholders knew that the prices of shares were much higher than their real value. Mistrust spread among investors, and on October 24, 1929 (Black Thursday), a huge selling wave hit the New York Stock Exchange.
Suddenly, everyone wanted to sell their shares, and no one wanted to buy them. Their value plummeted and triggered the Wall Street Crash (the Stock Market Crash) of 1929.
Many investors were ruined, and panic spread among the citizens, who flocked to the banks to withdraw their money. The banks were forced to close due to a lack of funds since they could not collect loans provided to individuals and insolvent businesses. The Wall Street Crash led to the failure of many banks.
In a few years, the crisis affected many industries, trade, and agriculture, causing a widespread economic recession (the Great Depression). As unemployment increased, consumption declined, and many factories closed, as they could not sell their products. Unemployment rose to 13 million in 1932. Many families fell into poverty.
The Fight Against the Crisis: The New Deal
The US and most European countries adopted measures to reduce the effects of the widespread crisis and promote economic recovery.
President Franklin D. Roosevelt, elected in 1932, introduced the New Deal, a series of political programmes based on the ideas of the economist J. M. Keynes, who advocated state intervention in the economy. Its main areas of action were:
•economic. The government helped private companies in difficulty, created public companies in sectors without incentives for private investment and ordered agricultural stock to be destroyed. The state also established stricter control over banks by monitoring their deposits and forcing them to offer low-interest loans.
•social. To fight unemployment, the state promoted a major public works programme (roads, reservoirs, etc.), encouraged companies to increase wages and reduced the working week to 40 hours.