RUSSIA/USSR
1918- Lenin and Communists ruling Russia
Treaty of Brest-Litovsk- exit WWI so Lenin could focus on domestic
issues
1919- Comintern (Communist International) created to encourage communist revolutions around the world (workers unite and overthrow the factory owners)- led to the Red Scare (fear of communism) in the U.S.
1921- NEP- New Economic Policy- Lenin’s plan to jumpstart the economy
-unique because it allowed for some free enterprise
-system more like socialism instead of communism
-focus on agriculture- especially the use of collectivization (farmers pool their resources to work land owned by the government- allowed for mass production)
-money raised from farming would eventually be spent on industrialization
1922- Russia changed its name to U.S.S.R. (Union of Soviet Socialist Republics)
1924- Lenin died- end of the NEP
Struggle for power after Lenin’s death
Trotsky vs. Stalin
-leader of the Red Army -leader of Communist Party
-encouraged revolutions around the world -believed communism should spread by example- Soviet Union first
-was Lenin’s choice for successor -had Trotsky murdered and assumed power
Stalin’s Economic Plan
-command economy- government controls all aspects of economic planning
and directs all resources
-called the plan a 5 year Plan- all planning done in 5 year increments
-1st 5 year plan- all agriculture
-2nd 5 year plan- industrialization- this is why Soviet Union= superpower at
end of WWII
-very few consumer goods produced- people lived in poverty
-this led to discontent- when people objected they were purged- ( a purge is
the removal of political opposition)
-See Example of the Military Purge (Transparency)
POST WAR EUROPE
-These countries were wrecked by WWI and were struggling to move on.
-Many of these countries were forced to use planned economies- government
directs all economic resources and planning on a temporary basis
-Many of the industries were nationalized (brought under government
control)
-Most of the new democracies are in jeopardy of collapsing due to economic
crisis
FRANCE-
-severe debt
-built the Maginot Line along the border with Germany for defense
AUSTRIA-
- democracy struggling to survive
-economic troubles
-most of the people wanted Anschluss- union with Germany- but WWI peace
treaty prevented it from happening (Hitler will later use this to justify his
actions)
UNITED STATES-
-had an easier time making the transition from wartime to peacetime
-due to creditor nation status- economy was flourishing
-automobile industry helped the economic boom- expanded all businesses
and related industries
-economic prosperity and carefree spirit= Roaring Twenties
-women rebelled after having a taste of independence during the war; they’ve
gained the right to vote and want to exercise their freedom
- flapper- young rebellious woman of the 20’s
- bob- her haircut because it bounced like a cork bobbing in water
- she drank, cursed and smoked in public
- she wore revealing clothing and bright lipstick
-government based this immoral behavior on alcohol and was looking for a way to conserve grain products
-passed Prohibition laws- forbid the manufacture, sale and transport of alcohol
-people rebelled- gangsters, bootlegging, speakeasies (illegal nightclubs where one had to whisper a password)
-law eventually repealed because it didn’t work
-during this economic prosperity, the stock market was booming so companies continued to put more stocks out for public saled
-by mid-1920’s there was an economic slowdown and people were not buying as many stocks, but companies did not slow down the amount they were putting out for sale
-with so many stocks on the market for sale, but no new buyers, the prices started to fall, but there were still no new buyers and people started to panic and wanted to sell- still no buyers and eventually the market hit zero
-this is known as “Black Tuesday”- October 29, 1929!!!!!!!!!!
-this is only the crash- it does not become the Great Depression until it becomes a global issue- here is how:
1- bank failures
2- to protect American businesses, the U.S. passed the Hawley-Smoot Protective Tariff
3- foreign countries had a difficult time selling their goods in the U.S., hurting foreign economies
4-foreign countries put retaliatory tariffs on our goods in their countries, hurting our economy even more
5- global trade came to a standstill= Great Depression!!!
U.S. responded-
President Roosevelt created a relief plan called the New Deal to help the suffering public.