The Great Depression in US (1929–1934)

The Great Depression in US (1929–1934)

Economic Depression of the World: 1929–34

Definition of Depression

• In Economic terms, a decline in trade and general prosperity is called the Depression.

The Great Depression: A Global Crisis

• The Great Depression of 1929–34 was worldwide, starting with an agricultural recession followed by financial panic and collapse, known as the Wall Street Crash (Oct. 1929), in the USA.

Impact on the USA

• The effects on the USA were catastrophic: by 1933, almost 14 million people were out of work, and American President Hoover's efforts failed to make any impression on the crisis.

• Nobody was surprised when the Republicans lost the presidential election in November 1932.

• The new Democratic President, Franklin D. Roosevelt, introduced policies known as the New Deal to try and put the country on the road to recovery.

Global Repercussions

• The Great Depression in turn affected financial institutions and money markets in other parts of the world and caused a run on the pound in the UK.

• The result was a decline in internal consumption and exports in industrialized countries, factory closures and massive unemployment.

Fascism in Italy

Post-Unification Weaknesses

The unification of Italy was only completed in 1870, however, the new state suffered from economic and political weaknesses.

Impact of World War I and Versailles

• The First World War (1914–18) was a great strain on her economy, and there was bitter disappointment at her treatment by the Versailles settlement.

Political Instability (1919–1922)

Between 1919 and 1922 there were five different governments, all of which were incapable of taking the decisive action that the situation demanded.

Rise of Mussolini and the Fascist Party

• In 1919, Benito Mussolini founded the Italian Fascist Party, which won 35 seats in the 1921 elections.

• At the same time, there seemed to be a real danger of a left-wing revolution; in an atmosphere of strikes and riots, the fascists staged a 'March on Rome', which culminated in King Victor Emmanuel inviting Mussolini to form a government (Oct. 1922); he remained in power until July 1943.

Mussolini's Dictatorship

• Gradually, Mussolini took on the powers of a dictator and attempted to control the entire way of life of the Italian people.

Fascism: Definition and Ideology

• The ideology and political system of Benito Mussolini, which encouraged militarism and extreme nationalism, organized Italy along right-wing hierarchical authoritarian lines, fundamentally opposed to democracy and liberalism.

• The term is also applied to any ideology or movement inspired by such principles, e.g., German National Socialism.

Early Popularity and Fatal Mistakes

• At first, it seemed as though his authoritarian regime might bring lasting benefits to Italy, and he won popularity with his adventurous and successful foreign policy.

• Later, he made the fatal mistake of entering the Second World War on the side of Germany (June 1940) even though he knew Italy could not afford involvement in another war.

Mussolini’s Downfall

• After the Italians suffered defeats by the British, who captured their African possessions and occupied Sicily, they turned against Mussolini.

• He was deposed and arrested (July 1943), but was rescued by the Germans (September 1943) and set up as ruler in northern Italy, backed by German troops.

• In April 1945, as British and American troops advanced northwards through Italy towards Milan, Mussolini tried to escape to Switzerland but was captured and shot dead by his Italian enemies (partisans).

Nazism in Germany

Collapse of Monarchy and Rise of Democracy

• As Germany moved towards defeat in 1918, public opinion turned against the government, and in October, the Kaiser, in a desperate bid to hang on to power, appointed Prince Max as Chancellor.

• He was known to be in favour of a more democratic form of government in which parliament had more power.

• But it was too late; in Nov., revolution broke out, the Kaiser escaped to Holland and abdicated, and Prince Max resigned.

• Friedrich Ebert, leader of the Social Democrat Party, became head of the government.

Weimer Republic and Its Struggles

• In January 1919, a general election was held, the first complete democratic one ever to take place in Germany.

• The Social Democrats emerged as the largest single party, and Ebert became the first President of the Republic.

• They had some Marxist ideas but believed that the way to achieve socialism was through parliamentary democracy.

The new government was not popular with all Germans:

• Even before the elections, the communists attempted to seize power in the Spartacist Rising (January 1919).

• In 192,0, right-wing enemies of the republic occupied Berlin (Kapp Putsch).

• The government also faced later threats, including Hitler's Munich Beer Hall Putsch (1923).

Birth of the Weimer Republic

• By the end of 1919, a new constitution had been agreed upon by the National Assembly (Parliament), which was meeting at Weimer because Berlin was still torn by political unrest.

• The Weimer Constitution gave its name to the Weimer Republic, which lasted until 1933, when it was destroyed by Hitler.

The Great Depression’s Impact on Germany

The Great Depression, beginning with the Wall Street Crash (Oct. 1929), had disastrous effects on Germany, producing massive unemployment with 6.5 million unemployed.

The Government was unable to cope with the situation, and by the end of 193,2, the Weimer Republic seemed to be on the verge of collapse.

Hitler's Rise and Nazi Propaganda

Meanwhile, Adolf Hitler and his National Socialists (Nazis) had been carrying out a great propaganda campaign, blaming the government for all the ills of Germany and setting out Nazi solutions to the problems.

In January 1933, President Hindenburg appointed Hitler as Chancellor, and soon afterwards, Hitler saw to it that democracy ceased to exist.

The Weimer Republic was at an end, and from then on until April 1945, Hitler was the dictator of Germany. Only the defeat in the Second World War and the death of Hitler (April 30, 1945) freed the German people from Nazi tyranny.

Hitler’s Cult of Personality

Adolf Hitler appointed Rudolf Hess as 'Deputy Führer' of the Nazi Party in 1933.
Hess delivered a speech on the occasion of the first anniversary of the proclamation of the party program on 25 February 1934, which was broadcast to the nation.
In his speech (the oath to Adolf Hitler), he said:

"Adolf Hitler is Germany and Germany is Adolf Hitler. He who pledges himself to Hitler pledges himself to Germany."

Militarism in Japan

Influence of Fascism Worldwide

• During the 20 years after Mussolini's March on Rome (1922), many other countries, faced with severe economic problems, followed the examples of Italy and Germany and turned to fascism or right-wing nationalism.

Military Control in Japan

• In Japan, the democratically elected government, increasingly embarrassed by economic, financial, and political problems, fell under the influence of the army in the early 1930s.

Expansion and World War II

• The military soon involved Japan in war with China, and later took the country into the Second World War with its attack on Pearl Harbor (1941).

Defeat and Democratic Recovery

• After a brilliant start, the Japanese eventually suffered defeat and devastation when the two atomic bombs were dropped.

• After the Second World War, Japan returned to democracy and made a remarkable recovery, soon becoming one of the world's most powerful states economically.

Final Thoughts

The Great Depression in the US was not just an economic crisis — it was a defining moment in modern history. Triggered by the Wall Street Crash of 1929, it led to mass unemployment, widespread poverty, and a collapse in public confidence. Families lost homes, jobs vanished, and the American Dream felt more distant than ever.

Yet, out of this devastation came resilience. Under Franklin D. Roosevelt’s leadership, the New Deal brought hope, reform, and a blueprint for recovery that influenced economic policies for decades. The crisis also reshaped America’s role in the world, reminding future generations of the fragility of prosperity and the importance of social safety nets.

Understanding this period is essential not just for economic historians but for all who seek to prevent such a catastrophe from repeating.