Unit 5: World War I and the Great Depression

DO NOT LOSE ME!!!!! Unit 5: World War I and the Great Depression Standard 7-4 Goal: The student will demonstrate an understanding of the causes and effects of world conflicts in the first half of the twentieth century. Vocabulary 7-4.1 1. Militarism 2. Stalemate 3. Front 4. Bolshevik 5. Unrestricted submarine warfare 6. Armistice 7-4.2 7. Treaty of Versailles 8. League of Nations 9. Reparations 10. Self-determination 7-4.3 11. Hyperinflation 12. Stock Market 13. Stocks 14. Margin 15. Surplus 16. Creditor 17. Consumer demand 18. Bank run 19. Gold standard Important People 1. Archduke Franz Ferdinand 2. Czar Nicolas II 3. Vladimir Lenin 4. President Woodrow Wilson 5. President Franklin D. Roosevelt

7-4.1 (BENCHMARK) Explain the causes and course of World War I, including militarism, alliances, imperialism, nationalism, the assassination of Archduke Franz Ferdinand, the impact of Russia's withdrawal from, and the United States entry into the war. 1 There were four M.A.I.N. (Militarism, Alliances, Imperialism, and Nationalism) causes of World War I. a) MILITARISM: (support for a strong and aggressive military) had been going on long before the war started. Imperialist nations built bigger and more powerful armies and navies so they could conquer lands around the world and protect their own lands. b) Alliances: Nations formed a complex system of alliances to protect themselves from their enemies. Russia, France, and England formed an alliance on one side called the Allied Powers. Germany, Italy, and Austria-Hungary formed an alliance on the other called the Central Powers. *Color WWI alliances with blue and red. Be sure to create your key below these instructions. 2

c) Imperialism: Newly created nations like Germany and Italy wanted to establish colonies to get rich. Imperialist nations competed to have the most territory. d) Nationalism: The main force for causing World War I. Not all nations had states. Many were part of empires such as Austria-Hungary or the Ottomans. Many people in these empires wanted independence and a state of their own. Economic and political rivalries gained strength through nationalism. 2 The spark that started the Great War was the assassination of ARCHDUKE FRANZ FERDINAND, the leader of the Austria-Hungary Empire. He was murdered by a group of Serbian nationalists in the Bosnian city of Sarajevo. When Austria-Hungary declared war on Serbia the entangling alliances kicked in, forcing nations to join in the fighting. 3 World War I was more deadly than previous wars. The Industrial Revolution led to the development of new weapons such as long range artillery, poison gas, submarines, tanks, machine guns, airplanes, and flame throwers. Both sides had expected their large armies and advanced weapons to win the war quickly, but by 1915 the use of trench warfare had turned the war into a STALEMATE (tie). 4 There were three main FRONTS in WWI. The Western Front was where most of the trench warfare took place. Most of the fighting was between the French and British on one side and the Germans on the other. The Western front was a stalemate (tie) until 1917. Germany fought Russia on the Eastern Front. Nations trying to break free of imperialism sided with Russia and nations trying to keep their empires sided with Germany. France fought against Germany and Austria- Hungary on the Italian Front. They were later joined by Italy, who switched sides in the middle of the war. 5 In 1917, Russia dropped out of the war due to an internal conflict. Russians had been unhappy for some time. High taxes, poor working conditions, a food shortage, and a lack of political rights caused them to turn against CZAR NICHOLAS II. With the war going on he was unable to maintain his authoritarian control. The BOLSHEVIK (a radical political party set on making Russia s government socialist) Revolution, led by Russia s working class, overthrew Nicholas II in 1917. The Czar, along with his family, was executed. The new Bolshevik leaders, led by VLADIMIR LENIN, abandoned their allies and signed a peace treaty with Germany, giving Germany victory on the Eastern Front. With the Eastern Front effectively shut down, the Western Front became even more important for the Allied Powers to win. 3

6 The same year Russia was leaving the war, the United States was entering. At the start of the war the USA declared themselves neutral (not taking either side). As the war went on this neutrality was harder and harder to maintain. The long history between the U.S. and Great Britain kept trade between the countries strong, while trade with Germany was cut back by British blockades. American businesses, who wanted to maintain trade and build their profits, made loans to Allied nations. Germany s use of UNRESTRICTED SUBMARINE WARFARE (unlimited attacks by submarines) angered PRESIDENT WOODROW WILSON, who believed the Germans were responsible for the deaths of innocents. To many, the 1915 sinking of the British passenger ship Lusitania proved Wilson s point. 7 Despite an election focused on the fact that Wilson has kept the United States from going to war the nation moved closer to fighting. The discovery of the Zimmerman Telegram, which was an attempt to form an alliance between Germany and Mexico (where Mexico would reclaim land from the United States), turned many Americans against Germany. The restart of German submarine attacks, which led to the sinking of U.S. merchant ships, was the last straw. Citing a desire to make the world safe for democracy, Wilson asked Congress to declare war on Germany in April of 1917. The American Expeditionary Force was sent to Europe in time to deflect that last German attack on the Western Front. The ARMISTICE (agreement to stop fighting) of November 11, 1918 ended the fighting. 4

7-4.2 Explain the outcomes of World War I, including the creation of President Woodrow Wilson's Fourteen Points, the Treaty of Versailles, the shifts in national borders, and the League of Nations. 8 The TREATY OF VERSAILLES ended World War I. Woodrow Wilson wanted the treaty to solve the problems that led to World War I, including ending the military build-up, ending secret alliances, and allowing countries to have self-determination. His Fourteen Points were an attempt to create world peace. His fourteenth point included the idea of creating an international organization where countries could meet to solve problems and avoid future wars. However, the nations of Europe had more interest in weakening Germany and building up their own standing in the world. In the end, only the international organization, called the LEAGUE OF NATIONS, was added to the Treaty of Versailles. 9 The main purpose of the Treaty was to punish Germany. It included the War Guilt Clause, which forced Germany to accept the blame for starting World War I. Germany was forced to pay REPARATIONS (fines) to the winning nations, had its military restricted to 100,000 soldiers (with no planes or submarines), and had to give up land in Europe and over seals. The treaty hurt Germany and would lead to economic and political problems. 10 Several nations, including Russia, negotiated different treaties with Germany and were denied a seat at Versailles. This led to problems between the victors and made it harder for the treaty to create a lasting peace. The crowning achievement of the Treaty of Versailles was supposed be the League of Nations. Created to bring the nations of the world together so they could discuss problems and prevent wars, the League was ultimately ineffective. Many major nations (such as the United States) never joined the League. Germany and Russia weren t allowed to join (though the Soviet Union did in 1934). Japan and Italy both quit the league by 1937. The League had no authority to influence non-members, making it useless against these countries. They couldn t wage war unless member nations volunteered to send troops, meaning the best they could do is offer advice and hope the nations took it. Finally, the League required unanimous consent to make any decisions, something that is very difficult to do. 11 Political borders changed after World War I. Countries coming out of the conflict had to deal with rising nationalism. Wilson believed countries should get SELF-DETERMINATION, meaning they should be allowed to decide their own issues of nationalism. In reality, only the 5

winning Allied Powers were granted this right. The Austro-Hungarian and Ottoman empires were broken up. Germany lost territory in Europe and overseas. Poland was created. Russia had lost land when they agreed to a peace treaty with Germany, but it got the land back after becoming the Soviet Union. Map Analysis: What happened to Europe s map after WWI? 6

7-4.3 (BENCHMARK) Explain the causes and effects of the worldwide Great Depression that took place in the 1930s, including the effects of the economic crash of 1929. 12 The damage from World War I and the heavy penalties placed on Germany led to serious economic problems in Europe. It was very expensive for nations to rebuild after the war. Germany s reparations were used to pay for the rebuilding. There was also the issue of the returning soldiers, who needed either their old jobs back or new jobs. Wartime spending used most of the fighting nations budgets, but it had also kept unemployment low. Without the war, many factories had to fire workers. 13 Germany faced the biggest economic challenges. The high reparations and the loss of its best industrial land weakened the German economy. Like Britain and France had wanted, Germany was prevented from starting another war but there other effects. Trade and production were hurt across Europe. These problems increased when France seized the Rhur Valley, damaging Germany s economic stability and their ability to pay their reparations. Germany s response was to print more money, which led to HYPERINFLATION (very fast rise in prices) in Germany and the loss of value for money across Europe. European nations stopped buying and investing in foreign goods, including those goods made in the United States. 14 The economy of the United States experienced an artificial boom during the 1920s. Businesses kept producing goods at the levels they did during World War I, expecting trade to continue. Farmers, whose crops had been needed to feed Allied armies and European citizens, saw their economy collapse. Wages for industrial workers remained low, though many Americans were able to buy goods on the installment plan and pay a little each week. 15 During the 1920s Americans were also investing in the STOCK MARKET (a place where stocks are bought and sold). These STOCKS (a piece of a business) were bought on MARGIN (a promise to pay later) and for a while stock values rose. People began to see the stock market as easy money, and investment increased. When the sales of goods slowed down companies found themselves with surplus products. Investors began selling their stock when the surpluses rose, driving prices down. CREDITORS (people who loan out money) demanded payment for the margined stocks, but the investors had no real money to pay them. Their only option was to sell more stock, sending the price falling. 7

16 All of this led to the Stock Market Crash of October 29, 1929. Known as Black Tuesday, the U.S. experienced the biggest loss in the stock market in history. Companies were forced to lay off workers and the rising unemployment caused even greater surpluses because people couldn t buy things. This cycle of rising unemployment and decreasing CONSUMER DEMAND (what and how much people want to buy) sent people to try and withdraw their money from their banks. These BANK RUNS (people rush to get their money out of the banks) had an effect across the country. Even people who had not invested in the stock market saw their savings wiped out because banks had loaned out most of their money and deposits were not protected by insurance at this time. Banks demanded the full payment of the loans they had given out, known as calling the loan, because there were no laws against this at that time. People with mortgages or other loans began losing their homes or other collateral. Unemployment and homelessness continued to increased, banks and businesses closed, and the economic depression in the U.S. made the worldwide depression even worse. 17 The U.S. had become the creditor to European nations after World War I. This meant the European economy was connected to the economy of the United States. Germany especially relied on U.S. loans because of the Treaty of Versailles. As the depression worsened, American creditors began calling their loans to European nations and stopped giving Europeans new loans. Without these loans the economies of Europe began to suffer. Nations were also hurt by the decrease in trade around the world. Investments in markets in Africa, Asia, and South America decreased, spreading the Depression around the world. 18 Governments responded to the Depression in different ways. Some nations saw totalitarian governments grow in response to the crisis. Others returned to isolationism, hoping to solve their own nation s 8

problems before worrying about the rest of the world. Democratic nations passed laws to try and solve their problems. Totalitarian nations turned to imperialism to gain raw materials and new markets. This imperialism would later cause one of the greatest conflicts in human history, WWII. 19 The U.S. responded by electing Franklin D. Roosevelt in 1932 by a landslide. Roosevelt s plan was called the New Deal. It focused on providing relief and reform. Public works programs were created to established jobs, while the stock markets, banks, businesses, and agricultural production were all regulated. The New Deal gave the national government a bigger role in the economy and the lives of individual citizens. For the first time in American history the people were given direct relief from their government. 20 Britain enacted protectionist policies to keep foreign competition from hurting its industries. They dropped the GOLD STANDARD (the value of a country s money = the amount of gold they have) and increased government ownership or management of key industries. Britain also raised taxes, loaning the money raised to people so they would start new businesses and create more jobs. 21 The depression in Germany allowed radical groups to become part of the political process. This happened in all democratic governments, but in Germany it had a much greater impact. The Nazi Party, led by Adolf Hitler, took advantage of the economic anxiety, political anger, and the parliamentary structure of the Germany government. Hitler became the German Chancellor in 1933 and used peoples fear to eliminate political opponents, consolidate the political power of Germany under his rule, and establish totalitarian control over the government. His popularity grew when he rejected the Treaty of Versailles, which had been very unpopular in Germany. Totalitarian leaders in Italy and Japan also took advantage of the problems created by the Great Depression. These actions created the perfect storm that would become World War II. 9