CRISIS OF CRISIS OF DEMOCRACY IN THE DEMOCRACY IN THE

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Postwar ProblemsPostwar Problems In 1919, three western democracies Britain, In 1919, three western democracies Britain,

France, and the United States appeared France, and the United States appeared powerful. Beneath the surface, however, powerful. Beneath the surface, however, postwar Europe faced grave problems.postwar Europe faced grave problems.

At first, the most pressing issues were At first, the most pressing issues were finding jobs for returning veterans and finding jobs for returning veterans and rebuilding war-ravaged lands. Many nations rebuilding war-ravaged lands. Many nations also owed huge debts because they had also owed huge debts because they had borrowed heavily to pay for the war.borrowed heavily to pay for the war.

The Russian Revolution unleashed fears of The Russian Revolution unleashed fears of the spread of communism.the spread of communism.

Europe lacked strong leaders just when Europe lacked strong leaders just when they were most needed The war had killed they were most needed The war had killed many of those who might have helped many of those who might have helped solve critical problems. solve critical problems.

Pursuing Peace Pursuing Peace

During the 1920s, diplomats worked During the 1920s, diplomats worked hard for peace. Stanley Baldwin prime hard for peace. Stanley Baldwin prime minister of Britain wrote “One more minister of Britain wrote “One more war in the west,” he warned, “and the war in the west,” he warned, “and the civilization of the ages will fall with as civilization of the ages will fall with as great a shock as that of Rome.”great a shock as that of Rome.”

Hopes would soon rise in 1925 when Hopes would soon rise in 1925 when treaties would be signed at locarno, treaties would be signed at locarno, Switzerland.Switzerland.

The Spirit of LocarnoThe Spirit of Locarno In 1925 when representatives form seven In 1925 when representatives form seven

European nations signed a series of treaties European nations signed a series of treaties at locarno, Switzerland. The treaties settled at locarno, Switzerland. The treaties settled Germany’s borders with France, Belgium, Germany’s borders with France, Belgium, Czechoslovakia, and Poland. The locarno Czechoslovakia, and Poland. The locarno treaties became the symbol of a new era. treaties became the symbol of a new era. “France and Germany Ban War Forever,” “France and Germany Ban War Forever,” trumpeted a New York Times headline. trumpeted a New York Times headline.

The “spirit of Locarno” was echoed in the The “spirit of Locarno” was echoed in the Kellogg- Briand Pact of 1928. Almost every in Kellogg- Briand Pact of 1928. Almost every in dependent nation in the world signed onto dependent nation in the world signed onto this agreement, promising to “renounce war this agreement, promising to “renounce war as an instrument of national policy. as an instrument of national policy.

Disturbances to the PeaceDisturbances to the Peace Although the Kellogg- Briand Pact outlawed Although the Kellogg- Briand Pact outlawed

war , there was no way of enforcing the ban. war , there was no way of enforcing the ban. Recovery and Collapse Recovery and Collapse During the 1920s, Europe made a shaky During the 1920s, Europe made a shaky

recovery. Economies returned to peacetime recovery. Economies returned to peacetime manufacturing and trade. Veterans gradually manufacturing and trade. Veterans gradually found jobs. Middle-class families generally found jobs. Middle-class families generally enjoyed a rising standard of living, with enjoyed a rising standard of living, with money to buy new products such as cars, money to buy new products such as cars, refrigerators, and radios. refrigerators, and radios.

The United States emerged from the war as The United States emerged from the war as the world’s leading economic power. the world’s leading economic power.

As long as the American economy was As long as the American economy was healthy, the global economy remained healthy, the global economy remained relatively prosperous. relatively prosperous.

A Dangerous ImbalanceA Dangerous Imbalance Both the American and the world economy had Both the American and the world economy had

weak spots, however. Oddly enough, a major weak spots, however. Oddly enough, a major problem was overproduction. The war had problem was overproduction. The war had increased demand for raw materials form Africa, increased demand for raw materials form Africa, Asia, and Latin America. Improved technology Asia, and Latin America. Improved technology and farming methods also contributed to higher and farming methods also contributed to higher output. When demand dwindled after the war, output. When demand dwindled after the war, prices fell. Consumers benefited form the lower prices fell. Consumers benefited form the lower prices. But farmers, miners, herders, and other prices. But farmers, miners, herders, and other suppliers of raw materials suffered severe suppliers of raw materials suffered severe hardships. At the same time, industrial workers hardships. At the same time, industrial workers won higher wages, which raised the price of won higher wages, which raised the price of manufactured goods. An imbalance emerged. manufactured goods. An imbalance emerged. Because farmer’s earnings had fallen, they Because farmer’s earnings had fallen, they could afford fewer manufactured goods. Despite could afford fewer manufactured goods. Despite the slowing demand, factories dept pouring out the slowing demand, factories dept pouring out goods. This imbalance, combined with other goods. This imbalance, combined with other problems, undermined industrial economies. By problems, undermined industrial economies. By the late 1920s, conditions were ripe for disaster.the late 1920s, conditions were ripe for disaster.

The Crash The Crash In the United States, prices on the New York In the United States, prices on the New York

Stock Exchange soared. Stock Exchange soared. In the autumn of 1929, jitters about the In the autumn of 1929, jitters about the

economy caused brokers to call in these economy caused brokers to call in these loans. When investors were unable to repay, loans. When investors were unable to repay, financial panic set in. Stock prices crashed, financial panic set in. Stock prices crashed, wiping out the fortunes of many investors. wiping out the fortunes of many investors.

The stock market crash triggered the Great The stock market crash triggered the Great Depression of the 1930s, a painful time of Depression of the 1930s, a painful time of global economic collapse. American banks global economic collapse. American banks stopped making loans abroad and stopped making loans abroad and demanded repayment of foreign loans. demanded repayment of foreign loans.

The CrashThe Crash The jobless could not afford to buy goods, The jobless could not afford to buy goods,

so more factories had to close, which in so more factories had to close, which in turn increased the numbers of unemployed. turn increased the numbers of unemployed.

In once-prosperous western cities, people In once-prosperous western cities, people slept on park benches and lined up to eat in slept on park benches and lined up to eat in charity soup kitchens.charity soup kitchens.

Global Impact- The United States imposed Global Impact- The United States imposed the highest tariffs in its history. The policy the highest tariffs in its history. The policy backfired because other nation retaliated backfired because other nation retaliated by raising their tariffs. All countries lost by raising their tariffs. All countries lost access to the larger global market. access to the larger global market.

As the depression dragged on , many As the depression dragged on , many people lost faith in the ability of democratic people lost faith in the ability of democratic governments to solve the problems. governments to solve the problems.

Britain in the Postwar EraBritain in the Postwar Era

1920s, unemployment was severe. Wages 1920s, unemployment was severe. Wages remained low, leading to worker unrest and remained low, leading to worker unrest and frequent strikes. In 1926, a general strike, or frequent strikes. In 1926, a general strike, or strike by workers in many different strike by workers in many different industries at the same time, lasted nine days industries at the same time, lasted nine days and involved some three million workers. and involved some three million workers.

The government provided some The government provided some unemployment benefits to ease the worst unemployment benefits to ease the worst problems, but millions of people suffered problems, but millions of people suffered great hardships. great hardships.

Irish IndependenceIrish Independence On Easter 1916, a small group On Easter 1916, a small group

launched a revolt against British rule. launched a revolt against British rule. IRA carried on a guerrilla war against IRA carried on a guerrilla war against British forces and their supporters. British forces and their supporters. Civilians were often caught in the Civilians were often caught in the middle of the violence. middle of the violence.

In 1922, moderated leaders in Ireland In 1922, moderated leaders in Ireland and England finally reached an and England finally reached an agreement. Most of Ireland became agreement. Most of Ireland became the independent Irish Free State, the independent Irish Free State, later called Eire. later called Eire.

France Pursues Security France Pursues Security

Like Britain, France emerged form World War I Like Britain, France emerged form World War I both a victor and a loser. Fighting on the both a victor and a loser. Fighting on the Western Front had devastated northern Western Front had devastated northern France. The Great Depression did not hurt France. The Great Depression did not hurt France as much as it did some countries. France as much as it did some countries. French industry was not as centralized in the French industry was not as centralized in the hands of big business. Small workshops served hands of big business. Small workshops served local regions and were less affected by global local regions and were less affected by global trends.trends.

Still Swings did occur, adding to an unstable Still Swings did occur, adding to an unstable political scene.political scene.

Coalition GovernmentCoalition Government

In 1936, several parties on the left In 1936, several parties on the left united behind the socialist leader Leon united behind the socialist leader Leon Blum. His popular Front government Blum. His popular Front government tried to solve labor problems and passed tried to solve labor problems and passed some socal legislation. But it could not some socal legislation. But it could not satisfy more radical leftists whose satisfy more radical leftists whose strikes soon brought down Blum’s strikes soon brought down Blum’s government Thus, France, like Britain, government Thus, France, like Britain, muddled through a series of crises. muddled through a series of crises.

Maginot Line Maginot Line

Securing it5s borders against Germany. Securing it5s borders against Germany. France deeply distrusted its neighbor France deeply distrusted its neighbor across the Rhine, which had invaded in across the Rhine, which had invaded in 1870 and 1914. To prevent a third 1870 and 1914. To prevent a third invasion it built massive fortifications invasion it built massive fortifications along the border. The Maginot Line, along the border. The Maginot Line, defensive “wall” was called, offered a defensive “wall” was called, offered a sense of security a false one. The line sense of security a false one. The line would be of little use when Germany would be of little use when Germany again invaded in 1940. again invaded in 1940.

The New DealThe New Deal In 1932, Americans elected a new President, In 1932, Americans elected a new President,

Franklin D. Roosevelt, who projected an air of Franklin D. Roosevelt, who projected an air of energy and optimism. “FDR” argued that energy and optimism. “FDR” argued that government had to take an active role in combating government had to take an active role in combating the Great Depression. He introduced the New Deal, the Great Depression. He introduced the New Deal, a massive package of economic and social a massive package of economic and social programs.programs.

Under the New Deal, the federal government Under the New Deal, the federal government became more directly involved in people’s everyday became more directly involved in people’s everyday lives than ever before. New laws regulated the stock lives than ever before. New laws regulated the stock market and protected bank depositors savings. market and protected bank depositors savings. Government programs created jobs for the Government programs created jobs for the unemployed or gave aid to poverty stricken farmers. unemployed or gave aid to poverty stricken farmers. The U.S. also set up a social Security system. It The U.S. also set up a social Security system. It provided old age pensions and other benefits that provided old age pensions and other benefits that major European countries had introduced years major European countries had introduced years earlier. earlier.

The New Deal did not end the Great Depression, but The New Deal did not end the Great Depression, but it did ease the suffering for many, Still, some critics it did ease the suffering for many, Still, some critics fiercely condemned the New Deal because it fiercely condemned the New Deal because it expanded the role of government.expanded the role of government.