Examine the political and economic elements that contributed to the 1917 Russian Revolution.
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The Great Depression started after a major fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of OctobRead more
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The Great Depression started after a major fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929, known as Black Tuesday.
Economic And Political Consequences Of Great Depression
The Great Depression had devastating effects on both rich and poor countries. Personal income, tax revenue, profits and prices dropped, while international trade fell by more than 50%. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%. In the political sphere, the great depression was considered as one of the prominent causes for the rise of totalitarian regimes that led to world war 2.
ECONOMIC CONSEQUENCES | POLITICAL CONSEQUENCES |
Apart from the decline in personal incomes and tax revenues, depression has also caused a severe collapse of international trade. Both industrialized nations and raw materials exporting countries are affected. It also led to the end of gold standards and countries moved to a fixed exchange system. | The political consequences of the great depression are equally devastating. In countries like Japan and Germany economic losses created a stage for the rise of militarist governments. Japan invaded China and developed mines and industries in Manchuria thinking that this would relieve it from depression. |
The great depression caused massive unemployment as factories closed down, due to lack of demand. Wages for existing employees were scaled down leading to a decrease in the standard of living. | Towards the end of the Great Depression, and the exceeding amount of dictators had the power to rise. Tired of constant suffering, people called for strong leaders and governments that can fix these problems. Stalin, Mussolini, and Hitler promised their citizens a bright future however once they recognized the power they were longing for they became dictators and ruled their countries by force. |
The Great Depression resulted in the breakdown of financial machinery in the developed world, especially the USA. Banks were put in a shaky position, having themselves speculated unsuccessfully. This factor coupled with bank runs by millions of people led to many banks declaring bankruptcy and closure. | Massive unemployment and poverty coupled with anger made people put into power extreme nationalistic right-wing governments which then turned into dictatorships. 25 countries became dictatorships between 1929 and 1939. |
The economies of Europe that were still recovering from the aftermath of World war 1 induced disruption, were severely affected by the Great depression. Most of these economies were dependent on short term loans given by the USA. The US stopped giving these loans and called for payment of loans, creating massive tremors in the European economy, particularly Germany. | In the atmosphere of cut-throat economic trade, the answer of countries like Japan & Italy was to build an empire – this would secure their supplies of raw materials and natural resources. Countries like Japan ( Manchuria ), Italy ( Abyssinia ) and Germany (eastern Europe), therefore, set about building an empire creating international conflict and tension. |
Stock market crashes in the USA also personally ruined many millions of investors who had paid high prices for the shares. Most of these shares are bought through credit. Thus creditors also lost heavily. Both banks and creditors losing money, credit supply in the market fell drastically. | Major European powers of the day France and the UK were also suffering. This is one of the reasons why these countries did not send armies to Manchuria or impose sanctions on Italy. They also wanted to avoid another war at any cost, thus taking the route of appeasement of Hilter. The ultimate result of all these intervening consequences was world war 2. |
New Deal Of FDR
The new deal is a set of economic and social welfare measures taken by president Roosevelt to tackle the great depression and revive the American economy. Based on Keynesian principles of state spending, this policy is credited with creating massive employment and preventing further decline in the economy. The new deal was introduced with three aims:
- Relief: To give direct help to poverty-stricken millions who were without food and homes. To fulfil this aim several steps like starting soup kitchens, loans for households in danger of losing their homes, slum clearance and building new homes etc. were taken up. To provide agricultural relief, a farmers relief act was passed where the government paid compensation to farmers who produced less. The social security act was passed to provide old-age pensions and unemployment insurance.
- Recovery: The objective of this aim is to reduce unemployment, stimulate the demand for goods, and get the economy moving again. With this aim in mind several steps like The Civilian Conservation Corps, passing of The National Industrial Recovery Act, the establishment of FEMA, The works progress Administration were taken up.
- Recovery: The intention behind this aim is to take steps to prevent a repeat of the economic disaster. Numerous financial and banking sector reforms like creation of SEC to regulate stock markets, providing insurance to depositors money. Apart from this, several reform measures to improve working conditions like The Wagner Act, Fair labour standards Act were passed. Under the Wagner Act, trade unions were given the legal foundation and the right to bargain with management.
Did New Deal Introduce Socialism?
The major criticism against the new deal came from businessmen who accused FDR of encouraging socialism. State governments also resented the extent to which the federal government was interfering in state affairs, effectively harming the federal spirit and centralizing the governance. However, a close look at the new deal and its implications are necessary to come to a definitive conclusion on this aspect.
- The new deal was accused of being socialist because of measures taken by Roosevelt like increase in taxation, regulations of wages and working hours, liberalization and giving excessive powers of bargaining to trade unions.
- He also introduced social welfare measures like old-age pensions and unemployment insurance schemes. Steps like government support to industries and government taking over of banks temporarily were seen by critics as the socialization of the USA.
- While these policies made critics allege that the president is appeasing the left, socialists in the democratic party and outside were also not happy with the president, as they felt the measures of the new deal were not radical enough. Left felt that too much power was still left in the hands of big business.
Fdr Rationale For Socialistic Policies
- While the accusations and counter-accusations about the new deal being socialistic and not being socialistic enough were running thick and fast, FDR himself stated, “I am fighting Communism… I want to save our system, the capitalist system…”
- The measures of a new deal which has socialistic leaning were introduced when US capitalism was in a huge slump, and workers’ struggles and radical dissent were running at a high pitch. The measures were victories for those struggles and for that dissent, but they were far short of socialism, meaning the social ownership and democratic control of the majority industry and banks.
- Roosevelt pointed out that to save capitalism from chaos… it was necessary… to grant to the American working class the much-belated economic concessions which the fellow workers in the advanced European countries had obtained in struggle years and decades before.
- The national mood amid depression is gradually turning left, with radical left-leaning politicians gaining ground at local and state elections and gradually gaining popularity at the national level.
- Sensing danger to the very political foundation of America, FDR co-opted left. Roosevelt shifted to the left in rhetoric and, to some extent, in policy, consciously seeking to steal the thunder of his populist critics.
As FDR himself stated, the goal of the new deal is to save capitalism from communism. Thus the new deal is pragmatic and is intended to do two birds with one stone. It aims to revive the American economy while also fighting back the rising radical left-wing in American politics. While many European nations doing the same turned into fascist and totalitarian governments, FDR tactically co-opted the left to preserve capitalism. The biggest consequence of this co-opting left is it gave rise to the Welfare state model of polity that is widely followed now across the world.
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The Russian Revolution of 1917 was a complex and multifaceted event that was influenced by a combination of socioeconomic and political factors. Here are some of the key factors that contributed to the outbreak of the revolution: Socioeconomic Factors: Economic Crisis: Russia had been experiencing aRead more
The Russian Revolution of 1917 was a complex and multifaceted event that was influenced by a combination of socioeconomic and political factors. Here are some of the key factors that contributed to the outbreak of the revolution:
Socioeconomic Factors:
Political Factors:
Key Events Leading to the Revolution: