THE MARCH TOWARD WAR
While the United States focused on domestic issues, economic depression and political instability were growing in Europe. During the 1920s, the international financial system was propped up largely by American loans to foreign countries. The crash of 1929, when the U.S. stock market plummeted and American capital dried up, set in motion a series of financial chain reactions that contributed significantly to a global downward economic spiral. Around the world, industrialized economies faced significant problems of economic depression and worker unemployment.
Totalitarianism in Europe
Many European countries had been suffering even before the Great Depression began. A postwar recession and the continuation of wartime inflation had hurt many economies, as did a decrease in agricultural prices, which made it harder for farmers to buy manufactured goods or pay off loans to banks. In such an unstable environment, Benito Mussolini capitalized on the frustrations of the Italian people who felt betrayed by the Versailles Treaty. In 1919, Mussolini created the Fasci Italiani di Combattimento (Italian Combat Squadron). The organization’s main tenets of Fascism called for a totalitarian form of government and a heightened focus on national unity, militarism, social Darwinism, and loyalty to the state. With the support of major Italian industrialists and the king, who saw Fascism as a bulwark against growing Socialist and Communist movements, Mussolini became prime minister in 1922. Between 1925 and 1927, Mussolini transformed the nation into a single party state and removed all restraints on his power.
In Germany, a similar pattern led to the rise of the totalitarian National Socialist Party. Political fragmentation through the 1920s accentuated the severe economic problems facing the country. As a result, the German Communist Party began to grow in strength, frightening many wealthy and middle-class Germans. In addition, the terms of the Treaty of Versailles had given rise to a deep-seated resentment of the victorious Allies. It was in such an environment that Adolf Hitler’s anti-Communist National Socialist Party—the Nazis—was born.
The Nazis gained numerous followers during the Great Depression, which hurt Germany tremendously, plunging it further into economic crisis. By 1932, nearly 30 percent of the German labor force was unemployed. Not surprisingly, the political mood was angry and sullen. Hitler, a World War I veteran, promised to return Germany to greatness. By the beginning of 1933, the Nazis had become the largest party in the German legislature. Germany’s president, Paul von Hindenburg, at the urging of large industrialists who feared a Communist uprising, appointed Hitler to the position of chancellor in January 1933. In the elections that took place in early March 1933, the Nazis gained the political power to pass the Enabling Act later that same month, which gave Hitler the power to make all laws for the next four years. Hitler thus effectively became the dictator of Germany and remained so long after the four-year term passed. Like Italy, Germany had become a one-party totalitarian state (Figure). Nazi Germany was an anti-Semitic nation, and in 1935, the Nuremberg Laws deprived Jews, whom Hitler blamed for Germany’s downfall, of German citizenship and the rights thereof.
Once in power, Hitler began to rebuild German military might. He commenced his program by withdrawing Germany from the League of Nations in October 1933. In 1936, in accordance with his promise to restore German greatness, Hitler dispatched military units into the Rhineland, on the border with France, which was an act contrary to the provisions of the Versailles Treaty. In March 1938, claiming that he sought only to reunite ethnic Germans within the borders of one country, Hitler invaded Austria. At a conference in Munich later that year, Great Britain’s prime minister, Neville Chamberlain, and France’s prime minister, Édouard Daladier, agreed to the partial dismemberment of Czechoslovakia and the occupation of the Sudetenland (a region with a sizable German population) by German troops (Figure). This Munich Pact offered a policy of appeasement, in the hope that German expansionist appetites could be satisfied without war. But not long after the agreement, Germany occupied the rest of Czechoslovakia as well.
In the Soviet Union, Premier Joseph Stalin, observing Hitler’s actions and listening to his public pronouncements, realized that Poland, part of which had once belonged to Germany and was home to people of German ancestry, was most likely next. Although fiercely opposed to Hitler, Stalin, sobered by the French and British betrayal of Czechoslovakia and unprepared for a major war, decided the best way to protect the Soviet Union, and gain additional territory, was to come to some accommodation with the German dictator. In August 1939, Germany and the Soviet Union essentially agreed to divide Poland between them and not make war upon one another.
Militaristic politicians also took control of Japan in the 1930s. The Japanese had worked assiduously for decades to modernize, build their strength, and become a prosperous, respected nation. The sentiment in Japan was decidedly pro-capitalist, and the Japanese militarists were fiercely supportive of a capitalist economy. They viewed with great concern the rise of Communism in the Soviet Union and in particular China, where the issue was fueling a civil war, and feared that the Soviet Union would make inroads in Asia by assisting China’s Communists. The Japanese militarists thus found a common ideological enemy with Fascism and National Socialism, which had based their rise to power on anti-Communist sentiments. In 1936, Japan and Germany signed the Anti-Comintern Pact, pledging mutual assistance in defending themselves against the Comintern, the international agency created by the Soviet Union to promote worldwide Communist revolution. In 1937, Italy joined the pact, essentially creating the foundation of what became the military alliance of the Axis powers.
Like its European allies, Japan was intent upon creating an empire for itself. In 1931, it created a new nation, a puppet state called Manchukuo, which had been cobbled together from the three northernmost provinces of China. Although the League of Nations formally protested Japan’s seizure of Chinese territory in 1931 and 1932, it did nothing else. In 1937, a clash between Japanese and Chinese troops, known as the Marco Polo Bridge Incident, led to a full-scale invasion of China by the Japanese. By the end of the year, the Chinese had suffered some serious defeats. In Nanjing, then called Nanking by Westerners, Japanese soldiers systematically raped Chinese women and massacred hundreds of thousands of civilians, leading to international outcry. Public sentiment against Japan in the United States reached new heights. Members of Protestant churches that were involved in missionary work in China were particularly outraged, as were Chinese Americans. A troop of Chinese American Boy Scouts in New York City’s Chinatown defied Boy Scout policy and marched in protest against Japanese aggression.