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WWI
Competition among countries led to conflict between major countries like Britain, France, Russia, and Germany. In total, 15 million soldiers were killed. As a result of warfare, European infrastructure had been demolished (such as railways). Many countries had borrowed lots of money, particularly from the US. -
Rise of Communism
The Bolsheviks took control of Russia to create the Soviet Union, becoming the first communist country in the world. The goal was to get rid of different social classes so that everyone is the same. When Stalin came into power, he heavily industrialized the USSR and increased military power.
Karl Marx developed a theory that stated there is an exploitative relationship between the capitalists and working class. Marxism is when there are no classes amongst a society. -
Treaty of Versailles
The Treaty of Versailles is what formally ended WWI. This treaty stated that Germany had to pay reparations, lose some territory, and give up its colonies. This crippled Germany's economy, and the current government (Weimar Republic) printed loads of money which led to hyperinflation. At this point, $1 USD would be around 4.2 trillion German Marks (DEM). Germany had to pay USD$33 billion in 1919 money. -
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Stalin
The USSR becomes the world's communist nation. This was with the intention of getting rid of class distinctions, as it is very much against capitalism and believes in everyone being exactly the same. Stalin made the country powerful in terms of their military and drove up industrialization by literally working people to death. Over 90% of the farms belonged to the government, which essentially resulted in a giant farm. Food could not grow when there were droughts, which caused multiple famines. -
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The Great Depression
During the years of what became the Great Depression, people were borrowing large amounts of money with the intention getting rich quick by investing in the stock market. The event began when there was a steep decline in prices and values of securities. This led to decline in industrialization, unemployment, poverty, famine, and homelessness. -
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Hitler
Under Hitler's rule, everything was controlled by the government while still being right extremists. During the Great Depression, unemployment was low due to Germany conducting military rearmament (equipping forces with new weapons), and building large transport systems such as the Autobahn.
Hitler believed that Germans belonged to a master race called the Aryans, but had extreme prejudice and hatred to others, such as Jews, blacks, and disabled people. -
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WWII
Germany and its citizens were heavily affected by WWI, which was accompanied by the Great Depresseion and Treaty of Versailles. The Treaty of Versailles pitted the blame of WWI on Germany, forcing them to pay reparations to Britain, France, Russia, and more. Afterwards, in other countries, there was a more fair distribution of wealth, and increased wages. Unemployment was low because while men were out fighting, many women had to join the workforce to provide for their children. -
International Monetary Fund
An organization with the goals of promoting foreign trade, stabilizing economies, and setting reasonable exchange rates for different currencies. The IMF is funded by each of the member countries, who all pay a fixed share of money, depending on how wealthy or stable they are. Countries that contribute more money have more votes and power in the IMF. When countries are facing financial troubles, they can borrow from this fund to dig themselves out of the ditch. -
Bretton Woods Conference
Representatives from 44 countries met to discuss how to prevent another world war. This is with the intention of decreasing economic downfall when a major event like World War breaks out, -
World Bank
The World Bank is an organization with the goal of ending widespread poverty, rebuilding war-torn countries, and funding infrastructural projects. The leader is appointed by the US government while member countries are essentially stakeholders who provide funding. -
GATT
The General Agreement on Tariffs and Trade (GATT) is an agreement between countries to get rid of trade tariffs / barriers. This boosted trade among the countries, which in turn boosts the local economy. -
World Trade Organization
The World Trade Organization (WTO) lays out the foundational rules for international trade. At the WTO, nations can more easily exchange goods and services, discuss trade agreements, and settle disputes. The WTO became the successor to the General Agreement on Trades and Tariffs in 1995.