Glossary
Collectivized agriculture
A system in which individual farms are consolidated into large, state-controlled collective farms, often implemented forcibly to increase agricultural output and control.
Example:
Under Stalin, collectivized agriculture aimed to eliminate private land ownership and increase food production for industrial workers, but it often resulted in widespread famine.
Communism
A political and economic ideology advocating for a classless society where the means of production are owned and controlled by the community as a whole.
Example:
In the Soviet Union, communism led to state control over all major industries and agriculture, aiming for rapid industrialization.
Corporatism
An economic system, often associated with fascism, where the state controls private companies and industries through national councils that aim to unite the interests of the state, workers, and employers.
Example:
Mussolini's Italy utilized corporatism to integrate various economic sectors under state supervision, aiming to eliminate class conflict and boost national production.
Fascism
A far-right, authoritarian ultranationalist political ideology characterized by dictatorial power, forcible suppression of opposition, and strong regimentation of society and economy.
Example:
In Italy, fascism under Mussolini emphasized the supremacy of the state over the individual and implemented corporatist economic policies.
Five-Year Plans
Centralized economic plans implemented in the Soviet Union under Stalin, setting ambitious production quotas for industrialization and agricultural collectivization.
Example:
Stalin's Five-Year Plans prioritized heavy industry, leading to rapid but often brutal industrial growth and severe famines due to forced collectivization.
Great Depression
A severe worldwide economic depression that took place during the 1930s, marked by widespread unemployment, poverty, and economic collapse.
Example:
The Great Depression led to widespread social unrest and forced governments globally to rethink their economic policies.
Keynesian Economics
An economic theory advocating for active government intervention, through fiscal and monetary policies, to stimulate demand and stabilize the economy during downturns.
Example:
During the Great Depression, the U.S. adopted Keynesian Economics by implementing the New Deal, using government spending to create jobs and boost the economy.
Laissez-faire
An economic philosophy advocating for minimal government intervention in the economy, allowing free markets to regulate themselves.
Example:
Before the Great Depression, many governments adhered to laissez-faire principles, believing that the economy would self-correct without state interference.
New Deal
A series of programs and reforms enacted in the United States under President Franklin D. Roosevelt in the 1930s, aimed at combating the Great Depression.
Example:
The New Deal included initiatives like the Civilian Conservation Corps and Social Security, providing relief, recovery, and reform to the American people.
New Economic Policy (NEP)
An economic policy introduced by Lenin in Soviet Russia in the 1920s, allowing for some private enterprise and market mechanisms to revive the economy after the Civil War.
Example:
The New Economic Policy (NEP) temporarily allowed peasants to sell surplus crops and small businesses to operate privately, a pragmatic shift from pure communist ideals.
Overproduction
A situation where the supply of goods exceeds the demand, leading to falling prices, reduced profits, and factory slowdowns.
Example:
In the 1920s, industrial overproduction of consumer goods like cars and appliances outpaced consumer purchasing power, contributing to economic instability.
Reparations
Payments made by a defeated country to compensate for war damages, often imposed as part of a peace treaty.
Example:
Germany's economy was crippled by the immense reparations demanded by the Allied powers after World War I, leading to hyperinflation.
Stock Market Crash (1929)
A sudden and steep decline in stock prices on the New York Stock Exchange in October 1929, widely considered a major trigger of the Great Depression.
Example:
The Stock Market Crash (1929) wiped out billions of dollars in wealth, leading to bank failures and a loss of public confidence in the economy.
Treaty of Versailles
A peace treaty signed in 1919 that officially ended World War I, imposing harsh terms on Germany and laying groundwork for future conflicts.
Example:
The punitive terms of the Treaty of Versailles, particularly the massive reparations, contributed to economic instability in Germany and fueled resentment.
Vicious Cycle of Debt
An unsustainable economic system where Allied powers relied on German reparations to repay their debts to the U.S., while Germany borrowed from the U.S. to pay reparations.
Example:
The post-WWI vicious cycle of debt meant that if the U.S. stopped lending, the entire global financial system could collapse, as it did during the Great Depression.
War Guilt Clause (Article 231)
A provision in the Treaty of Versailles that solely blamed Germany for starting World War I, causing deep humiliation and anger within the nation.
Example:
The War Guilt Clause was a major source of German resentment, as it forced the country to accept full responsibility for the devastation of WWI.