Glossary
Authoritarian Leaders
Rulers who concentrate power in their own hands, suppressing opposition and individual freedoms, often emerging during times of crisis by promising stability.
Example:
Figures like Benito Mussolini in Italy and Adolf Hitler in Germany rose as authoritarian leaders by exploiting post-WWI economic and political instability.
Buying on Margin
A practice where investors purchase stocks by paying only a small percentage of the price upfront and borrowing the rest from a broker.
Example:
During the 'Roaring Twenties,' many American investors engaged in buying on margin, hoping to amplify their returns in the booming stock market.
Cooperative Social Action
An economic and social model, primarily seen in Scandinavia, emphasizing collaboration between government, employers, and workers to achieve social equality and economic stability.
Example:
Scandinavian countries implemented Cooperative Social Action policies, leading to comprehensive welfare states and reduced poverty through collective bargaining and social programs.
Dawes Plan
An agreement in 1924 that restructured Germany's reparation payments, providing US loans to Germany to stabilize its economy and facilitate payments to Allied nations.
Example:
The Dawes Plan temporarily eased the post-WWI economic crisis by creating a circular flow of money, allowing Germany to pay reparations and Allied nations to repay US debts.
Extremism
Political ideologies or movements that are far outside the mainstream, often characterized by radical views and a willingness to use extreme measures to achieve their goals.
Example:
The widespread poverty and uncertainty following WWI created fertile ground for the rise of political extremism in several European nations.
Great Depression
A severe worldwide economic depression that began in the United States with the stock market crash of 1929 and lasted through most of the 1930s.
Example:
The Great Depression led to mass unemployment, poverty, and social unrest across Europe and North America, profoundly impacting global politics.
Hyperinflation
An extremely rapid and uncontrolled increase in prices, leading to a drastic decline in the value of a currency.
Example:
Germany experienced severe hyperinflation in the early 1920s, where the cost of everyday goods soared, and money became virtually worthless.
Keynesianism
An economic theory, developed by John Maynard Keynes, advocating for government intervention through fiscal policies and public spending to stimulate demand and stabilize the economy during recessions.
Example:
Franklin D. Roosevelt's New Deal policies in the United States were an early application of Keynesianism, using government programs to combat the Great Depression.
Margin Call Crisis
A situation where brokers demand that investors deposit additional funds or securities into their margin accounts to cover potential losses, often triggered by falling stock prices.
Example:
When the stock market crashed in 1929, widespread margin call crises forced investors to sell their shares, further accelerating the market's decline.
Popular Front Policies
A political strategy involving a coalition of left-wing parties, often including communists, socialists, and radicals, formed to oppose fascism and implement social welfare programs.
Example:
In 1930s France, the Popular Front Policies introduced significant labor reforms, such as the 40-hour workweek and paid vacations, aiming to improve workers' lives.
Reparations
Payments made by a defeated nation to compensate for war damages or injuries caused during a conflict.
Example:
The Treaty of Versailles imposed massive reparations on Germany after WWI, which significantly strained its post-war economy.
War of Attrition
A prolonged conflict where each side attempts to wear down the other through continuous losses of personnel and material, rather than decisive battles.
Example:
The trench warfare on the Western Front during WWI became a brutal war of attrition, leading to immense casualties without clear territorial gains.