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144-701: Nazi Germany occupied Poland in 1939 and carried out many atrocities . The 1943 Moscow Declaration stated that Germans judged guilty of war crimes would be sent back to the countries where they had committed their crimes and "judged on the spot by the peoples whom they have outraged." Poland, which suffered heavily due to Nazi atrocities, identified over 12,000 criminals it requested to be extradited ; eventually about 2,000 German criminals were extradited to Poland (from 1945 onwards, most before 1949). The Polish Underground State had its own Special Courts in occupied Poland , which tried and passed sentences on some German war criminals. Communist Polish authorities (of

288-634: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,

432-476: A pervasive cult of personality around Adolf Hitler to influence public opinion. The government controlled artistic expression, promoting specific art forms and banning or discouraging others. Genocide , mass murder , and large-scale forced labour became hallmarks of the regime; the implementation of the regime's racial policies culminated in the Holocaust . After the initial success of German invasion of

576-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around

720-488: A communist uprising. The Reichstag Fire Decree , imposed on 28 February 1933, rescinded most civil liberties, including rights of assembly and freedom of the press. The decree also allowed the police to detain people indefinitely without charges. The legislation was accompanied by a propaganda campaign that led to public support for the measure. Violent suppression of communists by the SA was undertaken nationwide and 4,000 members of

864-604: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to

1008-467: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to

1152-600: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside

1296-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and

1440-524: A non-aggression pact with the Soviet Union and invaded Poland on 1 September 1939, launching World War II in Europe . In alliance with Italy and other Axis powers , Germany conquered most of Europe by 1940 and threatened Great Britain. Racism , Nazi eugenics , anti-Slavism , and especially antisemitism were central ideological features of the regime. The Germanic peoples were considered by

1584-657: A non-aggression pact with Poland. In March 1939, Hitler demanded the return of the Free City of Danzig and the Polish Corridor , a strip of land that separated East Prussia from the rest of Germany. The British announced they would come to the aid of Poland if it was attacked. Hitler, believing the British would not take action, ordered an invasion plan should be readied for September 1939. On 23 May, Hitler described to his generals his overall plan of not only seizing

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1728-474: A protectorate of France under the condition that its residents would later decide by referendum which country to join, and Poland became a separate nation and was given access to the sea by the creation of the Polish Corridor , which separated Prussia from the rest of Germany, while Danzig was made a free city . Germany regained control of the Saarland through a referendum held in 1935 and annexed Austria in

1872-459: A second national anthem. Germany was still in a dire economic situation, as six million people were unemployed and the balance of trade deficit was daunting. Using deficit spending , public works projects were undertaken beginning in 1934, creating 1.7 million new jobs by the end of that year alone. Average wages began to rise. The SA leadership continued to apply pressure for greater political and military power. In response, Hitler used

2016-567: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In

2160-480: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of

2304-713: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to

2448-772: A substantial minority of Germans, who lived mostly in the Sudetenland . Under pressure from separatist groups within the Sudeten German Party , the Czechoslovak government offered economic concessions to the region. Hitler decided not just to incorporate the Sudetenland into the Reich, but to destroy the country of Czechoslovakia entirely. The Nazis undertook a propaganda campaign to try to generate support for an invasion. Top German military leaders opposed

2592-626: A thousand people (out of a population of around 16,000) committed suicide in Demmin around 1 May 1945 as the 65th Army of 2nd Belorussian Front first broke into a distillery and then rampaged through the town, committing mass rapes, arbitrarily executing civilians, and setting fire to buildings. High numbers of suicides took place in many other locations, including Neubrandenburg (600 dead), Stolp in Pommern (1,000 dead), and Berlin, where at least 7,057 people committed suicide in 1945. Estimates of

2736-896: A war fought on two fronts. The invasion conquered a huge area, including the Baltic states, Belarus , and west Ukraine . After the successful Battle of Smolensk in September 1941, Hitler ordered Army Group Centre to halt its advance to Moscow and temporarily divert its Panzer groups to aid in the encirclement of Leningrad and Kyiv . This pause provided the Red Army with an opportunity to mobilise fresh reserves. The Moscow offensive, which resumed in October 1941, ended disastrously in December . On 7 December 1941, Japan attacked Pearl Harbor , Hawaii. Four days later, Germany declared war on

2880-515: A war of conquest to obtain more territory. The Saarland , which had been placed under League of Nations supervision for 15 years at the end of World War I, voted in January 1935 to become part of Germany. In March 1935, Hitler announced the creation of an air force, and that the Reichswehr would be increased to 550,000 men. Britain agreed to Germany building a naval fleet with the signing of

3024-658: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation

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3168-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated

3312-584: The Autobahnen (motorways) and a massive secret rearmament program , forming the Wehrmacht (armed forces). The return to economic stability boosted the regime's popularity. Germany made increasingly aggressive territorial demands, threatening war if they were not met. Germany seized Austria in the Anschluss of 1938, and demanded and received the Sudetenland region of Czechoslovakia. Germany signed

3456-466: The Schutzstaffel (SS) and Gestapo to purge the entire SA leadership. Hitler targeted SA Stabschef (Chief of Staff) Ernst Röhm and other SA leaders who—along with a number of Hitler's political adversaries (such as Gregor Strasser and former chancellor Kurt von Schleicher )—were arrested and shot. Up to 200 people were killed from 30 June to 2 July 1934 in an event that became known as

3600-579: The Völkisch movement . The party, especially its paramilitary organisation Sturmabteilung (SA; Storm Detachment), or Brownshirts, used physical violence to advance their political position, disrupting the meetings of rival organisations and attacking their members as well as Jewish people on the streets. Such far-right armed groups were common in Bavaria , and were tolerated by the sympathetic far-right state government of Gustav Ritter von Kahr . When

3744-539: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that

3888-541: The 6th Army could be supplied by air, but this turned out to be infeasible. Hitler's refusal to allow a retreat led to the deaths of 200,000 German and Romanian soldiers; of the 91,000 men who surrendered in the city on 31 January 1943, only 6,000 survivors returned to Germany after the war. Losses continued to mount after Stalingrad, leading to a sharp reduction in the popularity of the Nazi Party and deteriorating morale. Soviet forces continued to push westward after

4032-745: The Anglo-German Naval Agreement on 18 June 1935. When the Italian invasion of Ethiopia led to only mild protests by the British and French governments, on 7 March 1936 Hitler used the Franco-Soviet Treaty of Mutual Assistance as a pretext to order the army to march 3,000 troops into the demilitarised zone in the Rhineland in violation of the Versailles Treaty. As the territory was part of Germany,

4176-634: The Anschluss of 1938. The Munich Agreement of 1938 gave Germany control of the Sudetenland, and they seized the remainder of Czechoslovakia six months later. Under threat of invasion by sea, Lithuania surrendered the Memel district in March 1939. Between 1939 and 1941, German forces invaded Poland , Denmark , Norway , France , Luxembourg , the Netherlands , Belgium , Yugoslavia , Greece , and

4320-575: The Battle of Berlin (16 April – 2 May 1945), Hitler and his staff lived in the underground Führerbunker while the Red Army approached. On 30 April, when Soviet troops were within two blocks of the Reich Chancellery , Hitler and his wife Eva Braun committed suicide . On 2 May, General Helmuth Weidling unconditionally surrendered Berlin to Soviet General Vasily Chuikov . Hitler

4464-738: The Communist Party of Germany were arrested. On 23 March 1933, the Enabling Act , an amendment to the Weimar Constitution , passed in the Reichstag by a vote of 444 to 94. This amendment allowed Hitler and his cabinet to pass laws—even laws that violated the constitution—without the consent of the president or the Reichstag. As the bill required a two-thirds majority to pass, the Nazis used intimidation tactics as well as

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4608-633: The German Empire (1871–1918) as the second. Severe setbacks to the German economy began after World War I ended, partly because of reparations payments required under the 1919 Treaty of Versailles . The government printed money to make the payments and to repay the country's war debt, but the resulting hyperinflation led to inflated prices, economic chaos, and food riots. When the government defaulted on their reparations payments in January 1923, French troops occupied German industrial areas along

4752-565: The Hague Convention , industrial firms in the Netherlands, France, and Belgium were put to work producing war materiel for Germany. The Nazis seized from the French thousands of locomotives and rolling stock, stockpiles of weapons, and raw materials such as copper, tin, oil, and nickel. Payments for occupation costs were levied upon France, Belgium, and Norway. Barriers to trade led to hoarding, black markets , and uncertainty about

4896-455: The League of Nations in October, claiming its disarmament clauses were unfair if they applied only to Germany. In a referendum held in November , 95 per cent of voters supported Germany's withdrawal. In 1934, Hitler told his military leaders that rearmament needed to be complete by 1942, as by then the German people would require more living space and resources, so Germany would have to start

5040-736: The Low Countries . They quickly conquered Luxembourg and the Netherlands and outmanoeuvred the Allies in Belgium , forcing the evacuation of many British and French troops at Dunkirk . France fell as well, surrendering to Germany on 22 June . The victory in France resulted in an upswing in Hitler's popularity and an upsurge in war fever in Germany. In violation of the provisions of

5184-579: The Nazi euthanasia program . Political courts called Sondergerichte sentenced some 12,000 members of the German resistance to death, and civil courts sentenced an additional 40,000 Germans. Mass rapes of German women also took place. As a result of their defeat in World War I and the resulting Treaty of Versailles, Germany lost Alsace-Lorraine , Northern Schleswig , and Memel . The Saarland became

5328-582: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of

5472-722: The Night of the Long Knives . On 2 August 1934, Hindenburg died. The previous day, the cabinet had enacted the " Law Concerning the Head of State of the German Reich ", which stated that upon Hindenburg's death the office of Reich President would be abolished and its powers merged with those of Reich Chancellor. Hitler thus became head of state as well as head of government and was formally named as Führer und Reichskanzler ("Leader and Chancellor"), although eventually Reichskanzler

5616-677: The Polish Committee of National Liberation , PKWN) who did not recognize the Underground State (and in some cases actively persecuted people connected with it) established its own alternative structure, which with the victory of the communist authorities over the Underground State became dominant in post-war Poland. PKWN authorities authorized the establishment of the Special Criminal Courts on 12 September 1944 to try German war criminals. On 22 January 1946,

5760-522: The Ruhr and widespread civil unrest followed. The National Socialist German Workers' Party ( Nationalsozialistische Deutsche Arbeiterpartei ), commonly known as the Nazi Party, was founded in 1920. It was the renamed successor of the German Workers' Party (DAP) formed one year earlier, and one of several far-right political parties then active. The Nazi Party platform included destruction of

5904-484: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,

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6048-470: The federal election of 1932 , the party was the largest in the Reichstag , holding 230 seats with 37.4 per cent of the popular vote. Although the Nazis won the greatest share of the popular vote in the two Reichstag general elections of 1932, they did not have a majority. Hitler refused to participate in a coalition government unless he was its leader. Under pressure from politicians, industrialists, and

6192-474: The stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until the Wall Street crash, after which the slide continued for three years, which

6336-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It

6480-566: The Allied bombing campaign became even more devastating. By targeting oil refineries and factories, they crippled the German war effort by late 1944. On 6 June 1944, American, British, and Canadian forces established a front in France with the D-Day landings in Normandy . On 20 July 1944 , Hitler survived an assassination attempt. He ordered brutal reprisals, resulting in 7,000 arrests and

6624-456: The British and French governments did not feel that attempting to enforce the treaty was worth the risk of war. In the one-party election held on 29 March, the Nazis received 98.9 per cent support. In 1936, Hitler signed an Anti-Comintern Pact with Japan and a non-aggression agreement with Mussolini, who was soon referring to a "Rome-Berlin Axis". Hitler sent military supplies and assistance to

6768-758: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with

6912-530: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there

7056-521: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in

7200-419: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit

7344-573: The German National People's Party – their former coalition partners – which then disbanded on 29 June. The remaining major political parties followed suit. On 14 July 1933 Germany became a one-party state with the passage of the Law Against the Formation of Parties , decreeing the Nazi Party to be the sole legal party in Germany. The founding of new parties was also made illegal, and all remaining political parties which had not already been dissolved were banned. Further elections in November 1933 , 1936 , and 1938 were Nazi-controlled, with only members of

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7488-411: The German state in the Nazi era are "Nazi Germany" and the "Third Reich", which Hitler and the Nazis also referred to as the "Thousand-Year Reich" ( Tausendjähriges Reich ). The latter, a translation of the Nazi propaganda term Drittes Reich , was first used in Das Dritte Reich , a 1923 book by Arthur Moeller van den Bruck . The book counted the Holy Roman Empire (962–1806) as the first Reich and

7632-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There

7776-527: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade

7920-445: The Nationalist forces of General Francisco Franco in the Spanish Civil War , which began in July 1936. The German Condor Legion included a range of aircraft and their crews, as well as a tank contingent. The aircraft of the Legion destroyed the city of Guernica in 1937. The Nationalists were victorious in 1939 and became an informal ally of Nazi Germany. In February 1938, Hitler emphasised to Austrian Chancellor Kurt Schuschnigg

8064-687: The Nazis to be the " master race ", the purest branch of the Aryan race. Jews , Romani people , Slavs , homosexuals , liberals , socialists , communists , other political opponents, Jehovah's Witnesses , Freemasons , those who refused to work , and other "undesirables" were imprisoned, deported , or murdered. Christian churches and citizens that opposed Hitler's rule were oppressed and leaders imprisoned. Education focused on racial biology , population policy, and fitness for military service. Career and educational opportunities for women were curtailed . Nazi Propaganda Ministry disseminated films, antisemitic canards , and organized mass rallies; fostering

8208-414: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on

8352-421: The Party and a small number of independents elected. All civilian organisations had their leadership replaced with Nazi sympathisers or party members, and either merged with the Nazi Party or faced dissolution. The Nazi government declared a "Day of National Labor" for May Day 1933, and invited many trade union delegates to Berlin for celebrations. The day after, SA stormtroopers demolished union offices around

8496-403: The Polish Corridor but greatly expanding German territory eastward at the expense of Poland. He expected this time they would be met by force. The Germans reaffirmed their alliance with Italy and signed non-aggression pacts with Denmark, Estonia, and Latvia whilst trade links were formalised with Romania, Norway, and Sweden. Foreign Minister Joachim von Ribbentrop arranged in negotiations with

8640-402: The RAF in what became known as the Battle of Britain , and by the end of October, Hitler realised that air superiority would not be achieved. He permanently postponed the invasion, a plan which the commanders of the German army had never taken entirely seriously. Several historians, including Andrew Gordon , believe the primary reason for the failure of the invasion plan was the superiority of

8784-456: The Royal Navy, not the actions of the RAF. In February 1941, the German Afrika Korps arrived in Libya to aid the Italians in the North African Campaign . On 6 April, Germany launched an invasion of Yugoslavia and Greece . All of Yugoslavia and parts of Greece were subsequently divided between Germany, Hungary, Italy, and Bulgaria. On 22 June 1941, contravening the Molotov–Ribbentrop Pact, about 3.8 million Axis troops attacked

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8928-468: The Soviet Union . Germany annexed parts of northern Yugoslavia in April 1941, while Mussolini ceded Trieste , South Tyrol , and Istria to Germany in 1943. Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around

9072-493: The Soviet Union a non-aggression pact, the Molotov–Ribbentrop Pact , signed in August 1939. The treaty also contained secret protocols dividing Poland and the Baltic states into German and Soviet spheres of influence. Germany's wartime foreign policy involved the creation of allied governments controlled directly or indirectly from Berlin. They intended to obtain soldiers from allies such as Italy and Hungary and workers and food supplies from allies such as Vichy France . Hungary

9216-506: The Soviet Union attacked from the east on 17 September. Reinhard Heydrich , chief of the Sicherheitspolizei (SiPo; Security Police) and Sicherheitsdienst (SD; Security Service), ordered on 21 September that Polish Jews should be rounded up and concentrated into cities with good rail links. Initially the intention was to deport them further east, or possibly to Madagascar . Using lists prepared in advance , some 65,000 Polish intelligentsia, noblemen, clergy, and teachers were murdered by

9360-441: The Soviet Union in 1941, Nazi Germany attempted to implement the Generalplan Ost and Hunger Plan , as part of its war of extermination in Eastern Europe. The Soviet resurgence and entry of the US into the war meant Germany lost the initiative in 1943 and by late 1944 had been pushed back to the 1939 border. Large-scale aerial bombing of Germany escalated and the Axis powers were driven back in Eastern and Southern Europe. Germany

9504-443: The Soviet Union. In addition to Hitler's stated purpose of acquiring Lebensraum , this large-scale offensive—codenamed Operation Barbarossa —was intended to destroy the Soviet Union and seize its natural resources for subsequent aggression against the Western powers. The reaction among Germans was one of surprise and trepidation as many were concerned about how much longer the war would continue or suspected that Germany could not win

9648-491: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This

9792-435: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending

9936-622: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in

10080-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had

10224-419: The United States. Food was in short supply in the conquered areas of the Soviet Union and Poland, as the retreating armies had burned the crops in some areas, and much of the remainder was sent back to the Reich. In Germany, rations were cut in 1942. In his role as Plenipotentiary of the Four Year Plan , Hermann Göring demanded increased shipments of grain from France and fish from Norway. The 1942 harvest

10368-562: The Weimar Republic, rejection of the Treaty of Versailles, radical antisemitism , and anti- Bolshevism . They promised a strong central government, increased Lebensraum ("living space") for Germanic peoples, formation of a national community based on race, and racial cleansing via the active suppression of Jews , who would be stripped of their citizenship and civil rights. The Nazis proposed national and cultural renewal based upon

10512-460: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why

10656-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate

10800-500: The blockade, imports into Germany declined by 80 per cent. To safeguard Swedish iron ore shipments to Germany, Hitler ordered the invasion of Denmark and Norway , which began on 9 April. Denmark fell after less than a day , while most of Norway followed by the end of the month. By early June, Germany occupied all of Norway . Against the advice of many of his senior military officers, in May 1940 Hitler ordered an attack on France and

10944-464: The business community, President Paul von Hindenburg appointed Hitler as Chancellor of Germany on 30 January 1933. This event is known as the Machtergreifung ("seizure of power"). On the night of 27 February 1933, the Reichstag building was set afire . Marinus van der Lubbe , a Dutch communist, was found guilty of starting the blaze. Hitler proclaimed that the arson marked the start of

11088-595: The capital, Berlin , ending World War II in Europe . After Hitler was appointed Chancellor of Germany by the President of the Weimar Republic Paul von Hindenburg on 30 January 1933, the Nazi Party began to eliminate political opposition and consolidate power. Hindenburg died on 2 August 1934, and Hitler became dictator by merging the powers of the chancellery and presidency. A 1934 German referendum confirmed Hitler as sole Führer (leader). Power

11232-513: The churches. The Nazi regime abolished the symbols of the Weimar Republic—including the black, red, and gold tricolour flag —and adopted reworked symbolism. The previous imperial black, white, and red tricolour was restored as one of Germany's two official flags; the second was the swastika flag of the Nazi Party, which became the sole national flag in September 1935. The Party anthem " Horst-Wessel-Lied " ("Horst Wessel Song") became

11376-462: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which

11520-607: The country, transforming it into a totalitarian dictatorship . The Third Reich , meaning "Third Realm" or "Third Empire", referred to the Nazi claim that Nazi Germany was the successor to the earlier Holy Roman Empire (800/962–1806) and German Empire (1871–1918). The Third Reich, which the Nazis referred to as the Thousand-Year Reich , ended in May 1945, after only 12 years, when the Allies defeated Germany and entered

11664-551: The country; all trade unions were forced to dissolve and their leaders were arrested. The Law for the Restoration of the Professional Civil Service , passed in April, removed from their jobs all teachers, professors, judges, magistrates, and government officials who were Jewish or whose commitment to the party was suspect. This meant the only non-political institutions not under control of the Nazis were

11808-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by

11952-625: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what

12096-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered

12240-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and

12384-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did

12528-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of

12672-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought

12816-563: The electorate in a plebiscite . Most Germans were relieved that the conflicts and street fighting of the Weimar era had ended. They were deluged with propaganda orchestrated by Minister of Public Enlightenment and Propaganda Joseph Goebbels , who promised peace and plenty for all in a united, Marxist-free country without the constraints of the Versailles Treaty. The Nazi Party obtained and legitimised power through its initial revolutionary activities, then through manipulation of legal mechanisms,

12960-529: The end of 1939 in an attempt to destroy Poland's identity as a nation. Soviet forces advanced into Finland in the Winter War , and German forces saw action at sea. But little other activity occurred until May, so the period became known as the " Phoney War ". From the start of the war, a British blockade on shipments to Germany affected its economy. Germany was particularly dependent on foreign supplies of oil, coal, and grain. Thanks to trade embargoes and

13104-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though

13248-602: The establishment of the Nuremberg Laws of 1935, which stripped them of their basic rights. The Nazis would take from the Jews their wealth, their right to intermarry with non-Jews, and their right to occupy many fields of labour (such as law, medicine, or education). Eventually the Nazis declared the Jews as undesirable to remain among German citizens and society. As early as February 1933, Hitler announced that rearmament must begin, albeit clandestinely at first, as to do so

13392-473: The execution of more than 4,900 people. The failed Ardennes Offensive (16 December 1944 – 25 January 1945) was the last major German offensive on the western front, and Soviet forces entered Germany on 27 January. Hitler's refusal to admit defeat and his insistence that the war be fought to the last man led to unnecessary death and destruction in the war's closing months. Through his Justice Minister Otto Georg Thierack , Hitler ordered that anyone who

13536-500: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating

13680-1020: The failed German offensive at the Battle of Kursk in the summer of 1943. By the end of 1943, the Germans had lost most of their eastern territorial gains. In Egypt, Field Marshal Erwin Rommel 's Afrika Korps were defeated by British forces under Field Marshal Bernard Montgomery in October 1942. The Allies landed in Sicily in July 1943 and were on the Italian peninsula by September. Meanwhile, American and British bomber fleets based in Britain began operations against Germany . Many sorties were intentionally given civilian targets in an effort to destroy German morale. The bombing of aircraft factories as well as Peenemünde Army Research Center , where V-1 and V-2 rockets were being developed and produced, were also deemed particularly important. German aircraft production could not keep pace with losses, and without air cover

13824-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be

13968-505: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August

14112-668: The future. Food supplies were precarious; production dropped in most of Europe. Famine was experienced in many occupied countries. Hitler's peace overtures to the new British Prime Minister Winston Churchill were rejected in July 1940. Grand Admiral Erich Raeder had advised Hitler in June that air superiority was a pre-condition for a successful invasion of Britain , so Hitler ordered a series of aerial attacks on Royal Air Force (RAF) airbases and radar stations, as well as nightly air raids on British cities, including London , Plymouth , and Coventry . The German Luftwaffe failed to defeat

14256-606: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing

14400-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,

14544-533: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at

14688-563: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with

14832-465: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,

14976-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then

15120-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view

15264-502: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and

15408-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that

15552-478: The need for Germany to secure its frontiers. Schuschnigg scheduled a plebiscite regarding Austrian independence for 13 March, but Hitler sent an ultimatum to Schuschnigg on 11 March demanding that he hand over all power to the Austrian Nazi Party or face an invasion. German troops entered Austria the next day, to be greeted with enthusiasm by the populace. The Republic of Czechoslovakia was home to

15696-582: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In

15840-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during

15984-497: The plan, as Germany was not yet ready for war. The crisis led to war preparations by Britain, Czechoslovakia, and France (Czechoslovakia's ally). Attempting to avoid war, British Prime Minister Neville Chamberlain arranged a series of meetings, the result of which was the Munich Agreement , signed on 29 September 1938. The Czechoslovak government was forced to accept the Sudetenland's annexation into Germany. Chamberlain

16128-480: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in

16272-406: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in

16416-606: The provisions of the Reichstag Fire Decree to keep several Social Democratic deputies from attending, and the Communists had already been banned. The Enabling Act would subsequently serve as the legal foundation for the dictatorship the Nazis established. On 10 May, the government seized the assets of the Social Democrats, and they were banned on 22 June. On 21 June, the SA raided the offices of

16560-615: The punishment of traitors to the Polish Nation." There was no appeal from the Tribunal's verdicts. The tribunal had three judges , four members of the jury , procurators and defenders . The best known judge was Emil Stanisław Rappaport . Seven trials were brought before the Supreme National Tribunal in 1946–1948: The first two of the above trials (of Greiser and Göth) were completed before

16704-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of

16848-809: The sentence was passed by the International Military Tribunal in Nuremberg on 30 September 1946. The Tribunal also declared that the General Government was a criminal institution. Nazi Germany Nazi Germany , officially known as the German Reich and later the Greater German Reich , was the German state between 1933 and 1945, when Adolf Hitler and the Nazi Party controlled

16992-563: The single-instance Supreme National Tribunal was formed, with a mission to try the main perpetrators of crimes committed by the Third Reich in the occupied Polish territories. The jurisdiction and powers of the Tribunal were defined in decrees of 22 January and 17 October 1946 and a decree of 11 April 1947. The law applied was a decree of 31 August 1944 "concerning the punishment of fascist-Hitlerite criminals guilty of murder and ill-treatment of civilian population and of prisoners of war, and

17136-460: The stock market in the United States crashed in 1929 , the effect in Germany was dire. Millions were thrown out of work and several major banks collapsed. Hitler and the Nazis prepared to take advantage of the emergency to gain support for their party. They promised to strengthen the economy and provide jobs. Many voters decided the Nazi Party was capable of restoring order, quelling civil unrest, and improving Germany's international reputation. After

17280-529: The total German war dead range from 5.5 to 6.9 million persons. A study by German historian Rüdiger Overmans puts the number of German military dead and missing at 5.3 million, including 900,000 men conscripted from outside of Germany's 1937 borders. Richard Overy estimated in 2014 that about 353,000 civilians were killed in Allied air raids. Other civilian deaths include 300,000 Germans (including Jews) who were victims of Nazi political, racial, and religious persecution and 200,000 who were murdered in

17424-421: The use of police powers, and by taking control of the state and federal institutions. The first major Nazi concentration camp , initially for political prisoners, was opened at Dachau in 1933. Hundreds of camps of varying size and function were created by the end of the war. Beginning in April 1933, scores of measures defining the status of Jews and their rights were instituted. These measures culminated in

17568-494: The war drew to a close. Suicide rates in Germany increased, particularly in areas where the Red Army was advancing. Among soldiers and party personnel, suicide was often deemed an honourable and heroic alternative to surrender. First-hand accounts and propaganda about the uncivilised behaviour of the advancing Soviet troops caused panic among civilians on the Eastern Front, especially women, who feared being raped. More than

17712-476: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and

17856-624: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in

18000-493: The world. The economic contagion began in 1929 in the United States , the largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered the beginning of the Depression. The Depression was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on

18144-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among

18288-494: Was a powerful ally, the relationship was distant, with little co-ordination or co-operation. For example, Germany refused to share their formula for synthetic oil from coal until late in the war. Germany invaded Poland and captured the Free City of Danzig on 1 September 1939, beginning World War II in Europe. Honouring their treaty obligations, Britain and France declared war on Germany two days later. Poland fell quickly, as

18432-658: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject

18576-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did

18720-500: Was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in

18864-490: Was centralised in Hitler's person, and his word became the highest law. The government was not a coordinated, cooperating body, but rather a collection of factions struggling to amass power. In the midst of the Great Depression , the Nazis restored economic stability and ended mass unemployment using heavy military spending. Financed by deficit spending , the regime undertook extensive public works projects, including

19008-506: Was conquered by the Soviet Union from the east and the other Allies from the west, and capitulated on 8 May 1945. Hitler's refusal to admit defeat led to massive destruction of German infrastructure and additional war-related deaths in the closing months of the war. The Allies initiated a policy of denazification and put many of the surviving Nazi leadership on trial for war crimes at the Nuremberg trials . Common English terms for

19152-417: Was dropped. Germany was now a totalitarian state with Hitler at its head. As head of state, Hitler became Supreme Commander of the armed forces. The new law provided an altered loyalty oath for servicemen so that they affirmed loyalty to Hitler personally rather than the office of supreme commander or the state. On 19 August, the merger of the presidency with the chancellorship was approved by 90 per cent of

19296-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of

19440-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing

19584-641: Was good, and food supplies remained adequate in Western Europe. Germany and Europe as a whole were almost totally dependent on foreign oil imports. In an attempt to resolve the shortage, in June 1942 Germany launched Fall Blau ("Case Blue"), an offensive against the Caucasian oilfields. The Red Army launched a counter-offensive on 19 November and encircled the Axis forces, who were trapped in Stalingrad on 23 November. Göring assured Hitler that

19728-473: Was greeted with cheers when he landed in London, saying the agreement brought "peace for our time". Austrian and Czech foreign exchange reserves were seized by the Nazis, as were stockpiles of raw materials such as metals and completed goods such as weaponry and aircraft, which were shipped to Germany. The Reichswerke Hermann Göring industrial conglomerate took control of steel and coal production facilities in both countries. In January 1934, Germany signed

19872-500: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by

20016-497: Was in violation of the Versailles Treaty. On 17 May 1933, Hitler gave a speech before the Reichstag outlining his desire for world peace and accepted an offer from American President Franklin D. Roosevelt for military disarmament, provided the other nations of Europe did the same. When the other European powers failed to accept this offer, Hitler pulled Germany out of the World Disarmament Conference and

20160-495: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened

20304-432: Was not prepared to fight should be court-martialed, and thousands of people were executed. In many areas, people surrendered to the approaching Allies in spite of exhortations of local leaders to continue to fight. Hitler ordered the destruction of transport, bridges, industries, and other infrastructure—a scorched earth decree—but Armaments Minister Albert Speer prevented this order from being fully carried out. During

20448-489: Was succeeded by Grand Admiral Karl Dönitz as Reich President and Goebbels as Reich Chancellor. Goebbels and his wife Magda committed suicide the next day after murdering their six children . Between 4 and 8 May 1945, most of the remaining German armed forces unconditionally surrendered. The German Instrument of Surrender was signed 8 May, marking the end of the Nazi regime and the end of World War II in Europe . Popular support for Hitler almost completely disappeared as

20592-682: Was the fourth nation to join the Axis, signing the Tripartite Pact on 27 September 1940. Bulgaria signed the pact on 17 November. German efforts to secure oil included negotiating a supply from their new ally, Romania , who signed the Pact on 23 November, alongside the Slovak Republic. By late 1942, there were 24 divisions from Romania on the Eastern Front, 10 from Italy, and 10 from Hungary. Germany assumed full control in France in 1942, Italy in 1943, and Hungary in 1944. Although Japan

20736-470: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that

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