CHAPTER 13

Inter War Years

Economic Prosperity

United States – world’s leading economic power

WW I helped boost the economy Industry Agriculture Consumer goods

Reflected in the Stock Market Money borrowed to buy stocks Value increased

Hidden Problems

1. Wealth not distributed equally

2. Credit was too easy to get Arrangement in which a purchaser

borrows money from a bank or lender and pays it back over time

Black Tuesday

Spending had slowed by Fall 1929Financial panic grew

people were afraid prices would go down, so they quickly sell

Other join in and the prices fall anywaysOctober 29, 1929 – worst selling dayBanks who lent money were not able

to pay out the savings

Government ResponsesUnder HooverLimited gov. involvementSmoot-Hawley Tariff Act – placed heavy taxes on

imported goods to encourage the buying of U.S. goods.

Under FDRNew Deal – a series of government programs that

created jobs, welfare programs, and regulations to reform and protect the stock market and banks.

Believed that deficit spending would help boost the economy

JAPANESE IMPERIALISM

Section 2

Japan’s Economic Problems

Economic Problems Solutions

1920s

Economic Shift- Began to industrialize Fell short of resources Unemployment rose Difficulty exporting goods

Social Shift- Western practices adopted A society devoted to the state and emperor

Rise of the Military

Couldn’t compete with other world powers Technologically Size of army/navy

Building new weapon – soldiersExtreme patriotism towards emperor and

stateMilitary take over of government

(assassinations)

Manchuria

Manchurian Incident Japan invaded Manchuria for resources Would help Japan compete with western nations Renamed Manchukuo Public support

Japanese afraid of the spread of CommunismSecond Sino-Japanese WarNanjing Massacre (Nanking)

Japanese Diplomacy

Withdrew from the League of Nations (1933)No longer limit size of navyAnti-Comintern Pact – Germany and Italy;

agree to stop the spread of communism

The Political Spectrum

The Political Spectrum

Rise of Dictators

Totalitarian state – a government that aims to control political, social, intellectual, and cultural lives of citizens.

Wanted to conquer the minds and hearts of their subjects Propaganda Modern communication

Fascist Beliefs & Policies

Fascism - a political movement that stresses extreme loyalty to the state and its leader.

Support for Fascists comes from aristocrats, industrialists, veterans, and the lower middle class.

Fascism similarities to Communism

1. Ruled by dictator & one party system2. Both denied individual rights3. State is supreme

Difference is that Fascists didn’t want a classless society.

Kristallnacht

“night of broken glass”, November 9, 1938Destruction against Jewish synagogues,

businesses, and peopleBarred from all public transportation,

buildings, schools, and other public placesclean up everything from KristallnachtMany encouraged to leave the country

Kristallnacht