#European History Study Guide: Post-WWI Economic Turmoil & Rise of Extremism

Welcome! This guide is designed to help you ace your exam by focusing on the key economic and political shifts after World War I. Let's break it down and get you feeling confident. 💪

#1. The Economic Fallout of WWI

#1.1 Devastation and Debt

Key Concept

** WWI's Impact: Great Britain, France, Russia, Belgium, and Germany suffered the most significant economic damage.

Key Concept

** War of Attrition: The conflict became a war of attrition, leading to massive destruction and unprecedented casualties.

Key Concept

** Expensive Warfare: New weaponry and fighting styles resulted in immense costs, pushing nations into deep debt.

Quick Fact

** The scale of destruction in WWI was unlike any previous European conflict.

#1.2 The Debt Cycle

Key Concept

** US Loans: The United States provided loans to European allies during the war, expecting repayment afterward.

Key Concept

** Treaty of Versailles: Germany was burdened with massive reparations (132 billion German marks, ~$33 billion), exacerbating their debt.

Key Concept

** Hyperinflation: Germany's attempt to print money to cover debts led to hyperinflation, severely destabilizing their economy.

#1.3 The Dawes Plan

Key Concept

** US Intervention: The Dawes Plan, orchestrated by Charles Dawes, aimed to stabilize the situation.

Key Concept

** Plan Mechanics: The US loaned money to Germany, enabling them to pay reparations to other European nations, who could then repay their debts to the US.

Dawes Plan

Caption: The Dawes Plan aimed to create a circular flow of money to stabilize the post-WWI European economy.

#2. The US Stock Market Crash & Global Depression

#2.1 The Roaring Twenties in the US

Key Concept

** Post-War Boom: The US experienced an economic boom after WWI, with increased industrial production and a growing workforce.

Key Concept

** Consumer Economy: This led to a consumer-driven economy, with many people investing in the stock market.

Key Concept

** Buying on Margin: Investors often bought stocks on margin (paying only 10-20% upfront), borrowing the rest.

#2.2 The Crash of 1929

Key Concept

** Stock Sell-Off: When stock prices peaked, many began selling, causing a rapid drop in the market.

Key Concept

** Margin Call Crisis: Investors couldn't repay their loans when stock values plummeted, leading to bank closures.

Key Concept

** Dawes Plan Collapse: The US stock market crash ended the Dawes Plan, triggering the Great Depression and exacerbating Europe's economic woes.

#3. The Rise of Extremism

#3.1 Conditions for Extremism

Key Concept

** Widespread Poverty: Extreme poverty and economic instability created fertile ground for extremist ideologies.

Key Concept

** Fear and Uncertainty: People feared for their lives and the future of their nations, making them susceptible to radical solutions.

Key Concept

** Charismatic Leaders: Military figures with strong rhetoric gained popularity by promising to fix their countries' problems.

Quick Fact

** Nationalist rhetoric opposed interconnectedness and preached self-sufficiency.

#3.2 Key Examples

Key Concept

** Authoritarian Rise: Authoritarian leaders gained power in Italy, Spain, Germany, and even Russia.

Exam Tip

** Be prepared to discuss specific examples of these leaders and their ideologies.

#4. New Economic Theories

#4.1 Alternatives to Classical Economics

Key Concept

** Response to Crisis: These theories emerged as alternatives to classical economics, aiming to address the economic crisis.

Key Concept

** Heterodox Economics: They laid the groundwork for heterodox economic thought.

#4.2 Key Theories

**** Keynesianism: Developed by John Maynard Keynes, it advocates for government intervention to stabilize the economy through fiscal policies and government spending.
- Example: JFK's economic policies in the US were influenced by Keynesian ideas.
**** Cooperative Social Action (Scandinavia): Emphasized cooperation between government, employers, and workers to achieve economic and social equality.
- Example: Denmark, Finland, and Iceland implemented these policies to reduce poverty and promote social mobility.
**** Popular Front Policies (France): A coalition of left-wing parties aimed to reduce poverty and promote equality through nationalization, 40-hour workweeks, and social welfare programs.
- Example: The French Communist Party (PCF) played a key role in this movement.

Economic Theories

Caption: New economic theories emerged in response to the economic crisis following WWI, offering alternatives to classical economics.

Key Concept

** Enduring Impact: Many of these policies endured until the late 20th century.

#Final Exam Focus

#High-Priority Topics

WWI's Economic Impact: Understand the scale of destruction, debt, and reparations.
The Dawes Plan: Know its purpose, mechanics, and ultimate failure.
The US Stock Market Crash: Understand the causes and consequences, especially its impact on Europe.
Rise of Extremism: Be able to explain the conditions that led to the rise of authoritarian leaders.
New Economic Theories: Know the core principles of Keynesianism, Cooperative Social Action, and Popular Front policies.

#Common Question Types

Cause and Effect: Expect questions that ask you to connect events (e.g., WWI debt leading to hyperinflation).
Comparison: Be prepared to compare different economic theories and their impacts.
Analysis: Analyze the political and social consequences of economic instability.

#Last-Minute Tips

Time Management: Don't spend too long on any one question. Move on and come back if needed.
Common Pitfalls: Avoid oversimplifying complex issues. Provide specific examples to support your points.
Challenging Questions: Break down complex questions into smaller parts. Identify the key concepts being tested.
Stay Calm: Take deep breaths and trust your preparation. You've got this! 💡

This guide is your ultimate resource for exam success. Review it carefully, and you'll be well-prepared to tackle any question. Good luck! 🎉

#European History Study Guide: Post-WWI Economic Turmoil & Rise of Extremism

Welcome! This guide is designed to help you ace your exam by focusing on the key economic and political shifts after World War I. Let's break it down and get you feeling confident. 💪

#1. The Economic Fallout of WWI

#1.1 Devastation and Debt

Key Concept

** WWI's Impact: Great Britain, France, Russia, Belgium, and Germany suffered the most significant economic damage.

Key Concept

** War of Attrition: The conflict became a war of attrition, leading to massive destruction and unprecedented casualties.

Key Concept

** Expensive Warfare: New weaponry and fighting styles resulted in immense costs, pushing nations into deep debt.

Quick Fact

** The scale of destruction in WWI was unlike any previous European conflict.

#1.2 The Debt Cycle

Key Concept

** US Loans: The United States provided loans to European allies during the war, expecting repayment afterward.

Key Concept

** Treaty of Versailles: Germany was burdened with massive reparations (132 billion German marks, ~$33 billion), exacerbating their debt.

Key Concept

** Hyperinflation: Germany's attempt to print money to cover debts led to hyperinflation, severely destabilizing their economy.

#1.3 The Dawes Plan

Key Concept

** US Intervention: The Dawes Plan, orchestrated by Charles Dawes, aimed to stabilize the situation.

Key Concept

** Plan Mechanics: The US loaned money to Germany, enabling them to pay reparations to other European nations, who could then repay their debts to the US.

Dawes Plan

Caption: The Dawes Plan aimed to create a circular flow of money to stabilize the post-WWI European economy.

#2. The US Stock Market Crash & Global Depression

#2.1 The Roaring Twenties in the US

Key Concept

** Post-War Boom: The US experienced an economic boom after WWI, with increased industrial production and a growing workforce.

Key Concept

** Consumer Economy: This led to a consumer-driven economy, with many people investing in the stock market.

Key Concept

** Buying on Margin: Investors often bought stocks on margin (paying only 10-20% upfront), borrowing the rest.

#2.2 The Crash of 1929

Key Concept

** Stock Sell-Off: When stock prices peaked, many began selling, causing a rapid drop in the market.

Key Concept

** Margin Call Crisis: Investors couldn't repay their loans when stock values plummeted, leading to bank closures.

Key Concept

** Dawes Plan Collapse: The US stock market crash ended the Dawes Plan, triggering the Great Depression and exacerbating Europe's economic woes.

#3. The Rise of Extremism

#3.1 Conditions for Extremism

Key Concept

** Widespread Poverty: Extreme poverty and economic instability created fertile ground for extremist ideologies.

Key Concept

** Fear and Uncertainty: People feared for their lives and the future of their nations, making them susceptible to radical solutions.

Key Concept

** Charismatic Leaders: Military figures with strong rhetoric gained popularity by promising to fix their countries' problems.

Quick Fact

** Nationalist rhetoric opposed interconnectedness and preached self-sufficiency.

#3.2 Key Examples

Key Concept

** Authoritarian Rise: Authoritarian leaders gained power in Italy, Spain, Germany, and even Russia.

Exam Tip

** Be prepared to discuss specific examples of these leaders and their ideologies.

#4. New Economic Theories

#4.1 Alternatives to Classical Economics

Key Concept

** Response to Crisis: These theories emerged as alternatives to classical economics, aiming to address the economic crisis.

Key Concept

** Heterodox Economics: They laid the groundwork for heterodox economic thought.

#4.2 Key Theories

**** Keynesianism: Developed by John Maynard Keynes, it advocates for government intervention to stabilize the economy through fiscal policies and government spending.
- Example: JFK's economic policies in the US were influenced by Keynesian ideas.
**** Cooperative Social Action (Scandinavia): Emphasized cooperation between government, employers, and workers to achieve economic and social equality.
- Example: Denmark, Finland, and Iceland implemented these policies to reduce poverty and promote social mobility.
**** Popular Front Policies (France): A coalition of left-wing parties aimed to reduce poverty and promote equality through nationalization, 40-hour workweeks, and social welfare programs.
- Example: The French Communist Party (PCF) played a key role in this movement.

Economic Theories

Caption: New economic theories emerged in response to the economic crisis following WWI, offering alternatives to classical economics.

Key Concept

** Enduring Impact: Many of these policies endured until the late 20th century.

#Final Exam Focus

#High-Priority Topics

WWI's Economic Impact: Understand the scale of destruction, debt, and reparations.
The Dawes Plan: Know its purpose, mechanics, and ultimate failure.
The US Stock Market Crash: Understand the causes and consequences, especially its impact on Europe.
Rise of Extremism: Be able to explain the conditions that led to the rise of authoritarian leaders.
New Economic Theories: Know the core principles of Keynesianism, Cooperative Social Action, and Popular Front policies.

#Common Question Types

Cause and Effect: Expect questions that ask you to connect events (e.g., WWI debt leading to hyperinflation).
Comparison: Be prepared to compare different economic theories and their impacts.
Analysis: Analyze the political and social consequences of economic instability.

#Last-Minute Tips

Time Management: Don't spend too long on any one question. Move on and come back if needed.
Common Pitfalls: Avoid oversimplifying complex issues. Provide specific examples to support your points.
Challenging Questions: Break down complex questions into smaller parts. Identify the key concepts being tested.
Stay Calm: Take deep breaths and trust your preparation. You've got this! 💡

This guide is your ultimate resource for exam success. Review it carefully, and you'll be well-prepared to tackle any question. Good luck! 🎉

Global Economic Crisis: The Great Depression

Abigail Young

#European History Study Guide: Post-WWI Economic Turmoil & Rise of Extremism

#1. The Economic Fallout of WWI

#1.1 Devastation and Debt

#1.2 The Debt Cycle

#1.3 The Dawes Plan

#2. The US Stock Market Crash & Global Depression

#2.1 The Roaring Twenties in the US

#2.2 The Crash of 1929

#3. The Rise of Extremism

#3.1 Conditions for Extremism

#3.2 Key Examples

#4. New Economic Theories

#4.1 Alternatives to Classical Economics

#4.2 Key Theories

#Final Exam Focus

#High-Priority Topics

#Common Question Types

#Last-Minute Tips

Explore more resources

How are we doing?

Global Economic Crisis: The Great Depression

Abigail Young

#European History Study Guide: Post-WWI Economic Turmoil & Rise of Extremism

#1. The Economic Fallout of WWI

#1.1 Devastation and Debt

#1.2 The Debt Cycle

#1.3 The Dawes Plan

#2. The US Stock Market Crash & Global Depression

#2.1 The Roaring Twenties in the US

#2.2 The Crash of 1929

#3. The Rise of Extremism

#3.1 Conditions for Extremism

#3.2 Key Examples

#4. New Economic Theories

#4.1 Alternatives to Classical Economics

#4.2 Key Theories

#Final Exam Focus

#High-Priority Topics

#Common Question Types

#Last-Minute Tips

Explore more resources

How are we doing?