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The Economy in the Interwar Period

Driving Question: How did different governments around the world respond to economic crisis after 1900?

How did a stock market crash in the US lead to a global economic depression? Investigate how the interconnection of the world that began in the fifteenth century and intensified throughout the long nineteenth century led to an international economic crisis. Nations responded to the Great Depression in different ways, but in many regions this depression made the state more powerful. And in some places, governments turned to authoritarianism.

Learning Objectives

  1. Explain how different governments responded to economic crises after 1900.
  2. Investigate the similarities and differences between the political ideologies of communism and fascism.
  3. Use the historical thinking skill of contextualization to understand the economic and political circumstances that contributed to economic crises after 1900.
  4. Analyze primary source documents to evaluate the economic crises and how governments responded them in the interwar period.

Vocab Terms:

  • authoritarianism
  • dictator
  • economic stagnation
  • fascism
  • racism
  • totalitarianism
  • welfare state
STEP 1

Opener: The Economy in the Interwar Period

STEP 3

Global Great Depression

The 1929 stock market crash triggered a global economic collapse due to the interdependence among various industrialized national economies. In response to the crash, many countries turned inward, increased colonial exploitation, and expanded state control—paving the way for authoritarian regimes in some regions.

STEP 4

Source Collection: Economy in the Interwar Period

Different nations had different responses to the economic uncertainty in the Interwar period. These primary sources will help you understand those responses. As you read the primary source excerpts in this collection, use the accompanying Quick-Sourcing Tool and activity to guide your analysis.

STEP 5

Communism in the Soviet Union

Under Joseph Stalin, Soviet Russia became a major world power and played a key role in defeating Nazi Germany. However, Stalin’s rule was marked by brutal authoritarianism, including mass deaths and the use of forced labor camps, making the USSR a prime example of totalitarianism in the 20th century.

STEP 6

Closer: The Economy in the Interwar Period

Coming soon!