Think about this… What are some of the effects that an unstable government can have on a country? After WWI, many different political parties arose. What political parties are you familiar with in the U.S.? In other countries?
League of Nations Much weaker than originally planned The US was NOT a member Senate did not ratify Treaty of Versailles Members of the league would not agree to use force against nations that violated international law.
Instability in Germany Germany owed 132 billion German Marks (33 billion US dollars) paid in yearly installments After the first year they had a financial crisis and announced they could not pay French occupied Ruhr Valley and planned to collect money by operating Ruhr mines and factories Workers went on strike, and the government paid their salaries by printing more money By November 1923 4.2 trillion marks= $1 US Money was worthless
Dawes Plan An international commission produced a new plan for reparations in 1924- Dawes Plan Reduced reparations Coordinated Germany’s annual payments with its ability to pay Granted an initial $200 million loan for German recovery
Treaty of Locarno Begun by a new spirit of accord between Germany and France Treaty guaranteed new Western borders for Germany Germany soon after joined the League of Nations Everyone believed this meant lasting peace
Democratic States after the war Germany Created a new republic called the Weimar No strong political leaders Serious economic problems and was hit by the Great depression France Was the strongest European power after the war Did not feel the effects of the Great Depression until 1932 Economic problems caused political chaos Popular Front Government formed by leftist parites (communist, socialists, etc) Started the French New Deal Gave workers right to collective bargaining, a 40hr work week, paid vacation, and a minimum wage
Democratic states cont. Great Britain Lost many of its markets to the US and Japan during the war A new conservative government claimed credit for getting Britain out of the depression using balanced budgets and protective tariffs The U.S. More than 12 million were unemployed by 1933 FDR was elected and formed the New Deal Increased program of public works Welfare system 1935 Social Security Act