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INTRODUCTION
In order to explore what freedom looked like in the interwar period, it is essential that we analyze the major economic events that occurred in Both Germany and Japan. These events shaped these nations' cultures as well as various political aspects leading up to World War II.
GERMANY
Treaty of Versailles
Inflation
Economic Collapse
Hitler's Rise to Power
Inflation
Economic Collapse
Hitler's Rise to Power
JAPAN
The Showa Financial Crisis
The Showa Depression
Korekiyo Takahashi
The Showa Depression
Korekiyo Takahashi
Germany
Overview:
Germany’s economic problems during the interwar period played a large role in the social and political actions the country took in the years leading up to WW2. The economic hardships of Germany played a large role in Adolf Hitler's reign.
Treaty of Versailles:
Due to the Treaty of Versailles, Germany’s defeat in World War One proved to be expensive. Repayments to allies were enormous and Germany attempted several projects to improve the financial security of its country and lower its unemployment rate. However, Germany saw its social spending increase during this period, which led to continuing deficits and enormous debt. [1]
Tariffs, Inflation, and Economic Collapse:
Due to the high tariffs countries placed on the German repayments, Germany's economic recovery was unlikely. In a desperate effort to end the economic depression, Germany began printing large amounts of money. This caused extreme inflation, causing German currency to become essentially worthless. Germany’s economic collapse seemed inevitable. [1]
Hitler's Rise to Power:
The economic collapse of Germany provided an opportunity for a strong leader to step in and try to take control of the country's economy. An extremely persuasive man, Adolf Hitler convinced the citizens of Germany that the Jewish people were responsible for the financial hardships the country was facing. He also created a plan for economic recovery that included a fall in the unemployment rate, a raise in the level of income of Germany’s people, and a powerful military. [1]
Overview:
Germany’s economic problems during the interwar period played a large role in the social and political actions the country took in the years leading up to WW2. The economic hardships of Germany played a large role in Adolf Hitler's reign.
Treaty of Versailles:
Due to the Treaty of Versailles, Germany’s defeat in World War One proved to be expensive. Repayments to allies were enormous and Germany attempted several projects to improve the financial security of its country and lower its unemployment rate. However, Germany saw its social spending increase during this period, which led to continuing deficits and enormous debt. [1]
Tariffs, Inflation, and Economic Collapse:
Due to the high tariffs countries placed on the German repayments, Germany's economic recovery was unlikely. In a desperate effort to end the economic depression, Germany began printing large amounts of money. This caused extreme inflation, causing German currency to become essentially worthless. Germany’s economic collapse seemed inevitable. [1]
Hitler's Rise to Power:
The economic collapse of Germany provided an opportunity for a strong leader to step in and try to take control of the country's economy. An extremely persuasive man, Adolf Hitler convinced the citizens of Germany that the Jewish people were responsible for the financial hardships the country was facing. He also created a plan for economic recovery that included a fall in the unemployment rate, a raise in the level of income of Germany’s people, and a powerful military. [1]
Japan
Overview:
Two events marked economic distress for Japan in the late 1920’s and early 30’s: the Showa Financial Crisis and the Showa Depression. These events occurred during the reign of Emperor Hirohito, and both were related to the outcome of the first world war.
Overview:
Two events marked economic distress for Japan in the late 1920’s and early 30’s: the Showa Financial Crisis and the Showa Depression. These events occurred during the reign of Emperor Hirohito, and both were related to the outcome of the first world war.
The Showa Financial Crisis: (1927)
The Showa Financial Crisis was caused by an incomplete restructuring of Japan’s businesses. As Japanese business boomed after the end of World War One, companies invested heavily in increased production as Japan experienced great demand for its products. However, as the United Kingdom's economy recovered, demand for Japanese products drastically decreased. Debt began to accumulate, and the state of the economy worsened as the Bank Of Japan supported struggling banks and businesses with loans. This banking crisis, along with with natural tragedies such as the Great Kanto Earthquake, resulted in great economic hardship for Japan. [2] [4]
The Showa Financial Crisis was caused by an incomplete restructuring of Japan’s businesses. As Japanese business boomed after the end of World War One, companies invested heavily in increased production as Japan experienced great demand for its products. However, as the United Kingdom's economy recovered, demand for Japanese products drastically decreased. Debt began to accumulate, and the state of the economy worsened as the Bank Of Japan supported struggling banks and businesses with loans. This banking crisis, along with with natural tragedies such as the Great Kanto Earthquake, resulted in great economic hardship for Japan. [2] [4]
The Showa Depression: (1930-1932)
The Showa Depression was the most severe economic depression in recent Japanese history. The two main causes of this depression were the Japanese government adopting a policy to eliminate weak banks and firms, and the Wall Street crash of 1929. These events caused a number of economic problems in Japan, including the falling of textile and agricultural products, rationalization and famine. This Japanese depression was a result of worldwide economic instability and lasted a total of three years. However, Japan made a quicker recovery than other countries across the globe due to the great financial mind of Korekiyo Takahashi and his expertise in exchange rate and monetary adjustments. [3] [4]
The Showa Depression was the most severe economic depression in recent Japanese history. The two main causes of this depression were the Japanese government adopting a policy to eliminate weak banks and firms, and the Wall Street crash of 1929. These events caused a number of economic problems in Japan, including the falling of textile and agricultural products, rationalization and famine. This Japanese depression was a result of worldwide economic instability and lasted a total of three years. However, Japan made a quicker recovery than other countries across the globe due to the great financial mind of Korekiyo Takahashi and his expertise in exchange rate and monetary adjustments. [3] [4]