The Great Depression and The Rise of Dictators

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Economic Troubles
Peace after World War I did not bring political order or economic success to many countries. Germany,
for one, was in great trouble. The Germans were forced to pay for the damage of the war. Germany
struggled to make its payments. The German government printed too much money. This led to
inflation, which meant that the value of German money fell. The economy worsened. The United States
and European nations created the Dawes Plan to make sure Germany recovered. The plan reduced
the amount of money Germany owed. The economy improved but not for long.

During the 1930s, an economic depression struck many countries in the world. A depression is
a time of low economic activity. This crisis was so bad it became known as the Great Depression. The
Great Depression affected economies worldwide. Millions of people lost their jobs. Many businesses
shut down. In the United States, stock prices fell, and banks closed. Investors lost their money. The
problems soon spread to Europe. In the United States, President Franklin Roosevelt introduced a
program to boost the economy and provide jobs. It was called the New Deal.

The Nazi Führer, Il Duce, Benito Joseph Stalin, leader Japanese General
Adolf Hitler Mussolini of Italy of the Soviet Union Hideki Tojo
Dictators in Italy and Germany 

The Great Depression spread fear and uncertainty. Citizens in some nations wanted strong leaders to
fix their problems. These leaders often became dictators. The dictators formed totalitarian states. In
totalitarian states, political leaders try to totally control the way people live and think. In the 1930s,
dictators used print, radio, film, and the arts to enforce their views. People who disagreed were
punished.

Italy was the first European country to become a totalitarian state. It had a large debt to repay
after World War I. Many people were out of work, and there was political unrest. Benito Mussolini
came to power in 1922. Mussolini promised to restore order. He quickly ended democracy in Italy. He
banned all political parties except his Fascist Party. People lost their personal freedoms.

The Great Depression also led to the rise of a totalitarian state in Germany. Germans were
angry at how Germany had been punished by the Treaty of Versailles. Adolf Hitler was a powerful
speaker who promised to provide jobs and restore German power in the world. Hitler led the National
Socialist (Nazi) Party. The Nazis said that Germans were a master race and better than other people.
They blamed Jews for Germany’s problems.
 In 1933 the German Parliament
named Hitler chancellor of Germany
and passed a law that gave Hitler
total power. This gave Hitler a legal
way to become dictator. Under Hitler,
the government set up a secret police
force. Other political parties and labor
unions were banned. The Nazis set up
prisons called concentration camps.
They sent people who disagreed with
Nazi ideas there. The government
issued the Nuremberg Laws. It said
that Jews were no longer citizens and
took control of Jewish businesses and
jobs. The Nazis also limited women's rights

The Soviet Union Under Joseph Stalin, leader of the Soviet Union
The Soviet Union formed in 1922. It replaced the old Russian Empire. The Soviet Union was a
communist state. Communist party leader Joseph Stalin became dictator of the Soviet Union after
Vladimir Lenin’s death in the late 1920s. Stalin wanted to turn the Soviet Union into an industrial
power. He introduced Five-Year Plans that set economic goals. Under these plans, the state built
and controlled all factories, power plants, and oil refineries. Stalin also set up a system of
collectivization in the countryside. Small farms of the peasants were combined into factory-like
farms run by the government. The peasants fought back. They destroyed their property rather than
join the system. However, their resistance did not last long. Those who refused to cooperate were
killed or sent to prison.

Military Rule in Japan

Japan had an industrial economy and was hard hit by the Great Depression. Many workers
lost their jobs and faced starvation. The workers and farmers turned to the military. Military leaders
blamed Japan's problems on the spread of Western ideas. They wanted to return to old warrior
traditions. Military leaders wanted new territory and raw materials to make the Japanese economy
stronger. In 1931 army leaders conquered Manchuria in China’s northeastern region. When the
Japanese prime minister tried to stop the war, the military killed him. After that, the government
began to do what the military wanted. Japan made plans to build an empire in Asia.
The Great Depression and The Rise of Dictators Questions

1. Why did Germany's economy struggle after World War I?

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2. Why was the Dawes Plan introduced?

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3. What is totalitarianism?

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4. Who gave Hitler the legal power to be a dictator?

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5. How were Mussolini and Hitler alike in their ruling methods?

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6. In your own words, explain how he Great Depression allowed for dictators like Hitler rise to power?

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7. Why did Stalin force collective farms on Soviet peasants?

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8. Why do you think Japanese military leaders blamed Japan's problems on the spread of Western
ideas?
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