Reading -- The Great Depression Abroad

Dictators in Europe

Overseas, Europeans faced the huge job of rebuilding their war-torn nations. Debts from World War I were
still hurting European economies when the Great Depression hit. Nations took a variety of approaches to
handling the economic disaster. For example, Great Britain raised tariffs and focused on increasing domestic
production, which resulted in its government remaining relatively stable. Other countries, however, went
through political turmoil, and several countries moved toward totalitarianism. In this political system, the
government controls every part of citizens' lives. In the late 1920s Soviet leader Joseph Stalin moved toward
a more controlling government. He called for the rapid industrialization of the Soviet economy. Stalin also
forced farmers and peasants to give up their land to work on collectives—large government-owned farms.
Several million Soviets died as a result of Stalin's forced collectivization policy. But few people knew details of
what Stalin and his supporters were doing. As a result, many foreigners were impressed by the Soviet Union's
economic gains. The U.S. government, which had withheld official recognition since 1917, formally recognized
the Soviet Union in November 1933.
In Italy many people were bitter that their country had not received new territory in return for its help
during World War I. Italians also suffered from economic difficulties after the war. They found a strong leader
in former journalist and soldier Benito Mussolini. In 1922 Mussolini and his followers threatened to march on
Rome. His supporters were known as Blackshirts, after the color of their uniforms. Soon after, the Italian
king gave Mussolini temporary dictatorial powers. Mussolini ruled as dictator of Italy for more than 20 years.
His government was based on the political idea of fascism, which calls for a strong government led by one
person. In fascist systems, the state—or government—is seen as more important than individuals. Thus, a
fascist state will attempt to limit or destroy all opposition. In October 1935 Mussolini expanded Italy's territory
by invading the African nation of Ethiopia. Under Emperor Haile Selassie (HY-lee suh-LAS-ee), the Ethiopian
forces fought bravely. However, they could not defend themselves against the better-equipped Italian army.
Italy quickly conquered Ethiopia and made it a colony. The League of Nations responded with penalties but did
not have the power to enforce them. The United States remained neutral during the conflict.

Nazi Germany

Many Germans felt particularly bitter about the outcome of World War I. The Treaty of Versailles required
Germany to pay war reparations, which hurt its economy. Germans suffered deeply during the Great
Depression. Meanwhile, war veteran and politician Adolf Hitler rose to power. Hitler offered Germans
scapegoats, or people to blame for their problems. Hitler blamed intellectuals, communists, and particularly
Jews for Germany's defeat in World War I and its postwar problems. Hitler outlined his theories in Mein Kampf
(My Struggle), which he started writing while he was in prison for attempting to overthrow the German
government. Mein Kampf also presented Hitler's plan for Germany's rise to regional and world power.
Hitler quickly gained a large following. In 1932 members of his National Socialist Party, or Nazis, won
about 37 percent of the vote in national elections. The next year, Hitler became the chancellor of Germany. He
soon took absolute power, established the Third Reich, and promised to aggressively build a new German
empire. Hitler also ordered the German government to stop making foreign-debt repayments.
Hitler reduced Germany's unemployment, which increased his popularity. Between March 1933 and March
1934, unemployment fell by more than 2 million. State spending helped many groups recover from the
depression. German farmers, for example, received guaranteed prices for their produce. The government also
funded housing and highway construction projects. Hitler violated the Treaty of Versailles by rebuilding
Germany's military and remilitarizing the Rhineland, a border region in western Germany.
Hitler's plan included a campaign against Jews. The Nazis banned Jews and non-Nazis from government
positions and destroyed or seized their property. In September 1935 the government assigned Jews a lower
class of citizenship. However, the German capital city, Berlin, still hosted the 1936 Olympic Games. During the
Olympics the German government tried to hide evidence of its discrimination against Jews. After hosting the
Games, the German government returned to its plan for world domination. In October 1936 Germany and
Italy formed a military alliance, the Axis Powers. Later that year, Germany entered into an alliance with
Japan.
Germany made Jews leave all professions and kept them from studying in universities. Jews faced
increasing hardship and isolation, but many of them did not want to leave Germany. On November 9, 1938,
Nazis went on a rampage called Kristallnacht, or the "Night of Broken Glass." On Kristallnacht, Nazi mobs
killed more than 90 Jews and seriously injured hundreds more. The crowds destroyed some 7,500 Jewish
businesses and 177 synagogues. Violence against Jews spread throughout Germany and Austria. After
Kristallnacht the Nazi persecution of Jews increased dramatically.

Japan’s Military Expansion

On the other side of the world, Japan also used military force to solve its economic problems. Japan's
military leaders wanted to seize new territories in order to gain control of additional natural resources. They
hoped to reduce Japan's dependence on imports. In September 1931 Japan invaded Manchuria in northern
China. The League of Nations and the United States condemned the invasion, but neither wanted to go to war.
By 1937 Japan occupied much of northern China. Japan also began a massive naval buildup, which violated its
pledge given at the Washington Conference in the early 1920s.
President Roosevelt tried to maintain a balance between stopping aggression and keeping the United
States out of war. Many Americans favored a policy of isolationism. On December 12, 1937, Japan tested the
U.S. commitment to isolationism. Japanese planes destroyed the Panay, a U.S. gunboat, killing 2 people and
wounding 30 others. President Roosevelt demanded an apology, payment for damages, and a guarantee
against future incidents. Japan's government agreed to the terms. The United States had avoided war for the
moment.
In the late 1930s Congress passed four Neutrality Acts to keep the country out of international conflicts.
The first act prohibited the U.S. government from shipping arms to nations at war. Later neutrality acts
extended the ban to include groups involved in civil wars. Although most Americans favored isolation, the
international events of the 1930s were pushing the nation closer to war.