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Friday, May 15, 2020

Causes of World War II

From Wikipedia, the free encyclopedia
 
The German battleship Schleswig-Holstein attacked Westerplatte at the start of the war, September 1, 1939
 
Destroyer USS Shaw exploding during the attack on Pearl Harbor, December 7, 1941

Historians from many countries have given considerable attention to studying and understanding the causes of World War II, a global war from 1939 to 1945 that was the deadliest conflict in human history. The immediate precipitating event was the invasion of Poland by Nazi Germany on September 1, 1939, and the subsequent declarations of war on Germany made by Britain and France, but many other prior events have been suggested as ultimate causes. Primary themes in historical analysis of the war's origins include the political takeover of Germany in 1933 by Adolf Hitler and the Nazi Party; Japanese militarism against China; Italian aggression against Ethiopia; and Germany's initial success in negotiating a neutrality pact with the Soviet Union to divide territorial control of Eastern Europe between them. 

During the interwar period, deep anger arose in Weimar Germany regarding the conditions of the 1919 Treaty of Versailles, which punished Germany for its role in the First World War with severe conditions and heavy financial reparations in order to prevent it from ever becoming a military power again. This provoked strong currents of revanchism in German politics, with complaints primarily focused on the demilitarization of the Rhineland, the prohibition of German unification with Austria, and the loss of some German-speaking territories and overseas colonies.

The 1930s were a decade in which democracy was in disrepute; countries across the world turned to authoritarian regimes during the worldwide economic crisis of the Great Depression. In Germany, resentment and hatred of other countries was intensified by the instability of the German political system, as many activists rejected the legitimacy of the Weimar Republic. The most extreme political aspirant to emerge from this situation was Adolf Hitler, leader of the Nazi Party. The Nazis took totalitarian power in Germany beginning in 1933 and demanded the undoing of the Versailles provisions. Their ambitious and aggressive domestic and foreign policies reflected the Nazi ideologies of anti-Semitism, unification of all Germans, the acquisition of "living space" (Lebensraum) for agrarian settlers, the elimination of Bolshevism, and the hegemony of an "Aryan"/"Nordic" master race over "sub-humans" (Untermenschen) such as Jews and Slavs. Other factors leading to the war included aggression by Fascist Italy against Ethiopia and Albania, and by Imperial Japan against much of East Asia, resulting in the invasion of Manchuria in 1931 and the gradual annexation of most of China.

At first, these aggressive moves met with only feeble and ineffectual policies of appeasement from the other major world powers. The League of Nations, established after the First World War, proved helpless regarding China and Ethiopia. A decisive proximate event was the 1938 Munich Conference, which formally approved Germany's annexation of the Sudetenland from Czechoslovakia. Hitler promised it was his last territorial claim, but in early 1939 he became even more aggressive, and European governments finally realized that appeasement was not guaranteeing peace. Britain and France badly fumbled diplomatic efforts to form a military alliance with the Soviet Union, and Hitler instead offered Stalin a better deal in the Molotov–Ribbentrop Pact of August 1939. An alliance formed by Germany, Japan, and Italy led to the establishment of the Axis Powers.

Ultimate causes

Legacies of the First World War

"The Big Four" made all the major decisions at the Paris Peace Conference (from left to right, David Lloyd George of Britain, Vittorio Emanuele Orlando of Italy, Georges Clemenceau of France, Woodrow Wilson of the U.S.)
 
By the end of World War I in late 1918, the world's social and geopolitical circumstances had fundamentally and irrevocably changed. The Allies had been victorious, but many of Europe's economies and infrastructures were devastated, including those of the victors. France, along with the other victor countries, was in a desperate situation regarding its economy, security, and morale, and understood that its position in 1918 was "artificial and transitory". Thus, Prime Minister of France Georges Clemenceau worked to gain French security via the Treaty of Versailles, and French security demands, such as reparations, coal payments, and a demilitarized Rhineland, took precedence at the Paris Peace Conference of 1919–1920, which designed the treaty. The war "must be someone's fault – and that's a very natural human reaction" analyzed historian Margaret MacMillan. Germany was charged with the sole responsibility of starting World War I, and the "War Guilt Clause" was the first step towards a satisfying revenge for the victor countries, namely France, against Germany. Ginsberg argues, "France was greatly weakened and, in its weakness and fear of a resurgent Germany, sought to isolate and punish Germany....French revenge would come back to haunt France during the Nazi invasion and occupation twenty years later."

Germany after Versailles
  Administered by the League of Nations
  Annexed or transferred to neighboring countries by the treaty, or later via plebiscite and League of Nation action

The two main provisions of the French security agenda were war reparations from Germany in the form of money and coal and a detached German Rhineland. The French government printed excess currency, which created inflation, to compensate for the lack of funds, in addition to borrowing money from the United States. Reparations from Germany were necessary to stabilize the French economy. France also demanded that Germany give France its coal supply from the Ruhr to compensate for the destruction of French coal mines during the war. The French demanded an amount of coal that was a "technical impossibility" for the Germans to pay back. France also insisted on the demilitarization of the German Rhineland in the hope of hindering any possibility of a future German attack. This gave France a physical security barrier between itself and Germany. The inordinate amount of reparations, coal payments, and the principle of a demilitarized Rhineland were largely viewed by the Germans as insulting and unreasonable. 

The resulting Treaty of Versailles brought a formal end to the war but was criticized by governments on all sides of the conflict: it was neither lenient enough to appease Germany, nor harsh enough to prevent it from becoming a dominant continental power again. The German people largely viewed the treaty as placing the blame, or "war guilt", on Germany and Austria-Hungary and punishing them for their "responsibility", rather than working out an agreement that would assure long-term peace. The treaty imposed harsh monetary reparations as well as demilitarization requirements and territorial dismemberment, and caused mass ethnic resettlement, separating millions of ethnic Germans into neighboring countries.

In the effort to pay war reparations to Britain and France, the Weimar Republic printed trillions of marks, causing extremely high inflation. "No postwar German government believed it could accept such a burden on future generations and survive ...". Paying reparations to the victorious side was a traditional punishment with a long history of use, but in this instance it was the "extreme immoderation" that caused German resentment. Germany did not make its last World War I reparation payment until 3 October 2010, ninety-two years after the end of the war. Germany also fell behind in their coal payments because of a passive resistance movement against the French. In response, the French invaded the Ruhr and occupied it. By this point the majority of Germans were enraged with the French and placed the blame for their humiliation on the Weimar Republic. Adolf Hitler, a leader of the Nazi Party, attempted a coup d'état of the Republic in 1923 known as the Beer Hall Putsch, through which he intended to establish a Greater German Reich. Although this failed, Hitler gained recognition as a national hero among the German population.

During the war, German colonies outside Europe had been annexed by the Allies, and Italy took the southern half of Tyrol after an armistice was agreed upon. The war in the east ended with the defeat and collapse of the Russian Empire, and German troops had occupied large parts of Eastern and Central Europe (with varying degrees of control), establishing various client states such as a kingdom of Poland and the United Baltic Duchy. After the destructive and indecisive Battle of Jutland in 1916 and the mutiny of its sailors in 1917, the Kaiserliche Marine spent most of the war in port, only to be turned over to the Allies and scuttled at surrender by its own officers. Decades later, the lack of an obvious military defeat would be one of the pillars holding together the Dolchstosslegende ("Stab-in-the-back myth"), giving the Nazis another propaganda tool.

The demilitarized Rhineland and additional cutbacks on military also infuriated the Germans. Although it is logical that France would want the Rhineland to be a neutral zone, the fact that France had the power to make that desire happen merely exacerbated German resentment of the French. In addition, the Treaty of Versailles dissolved the German general staff, and possession of navy ships, aircraft, poison gas, tanks, and heavy artillery was made illegal. The humiliation of being bossed around by the victor countries, especially France, and being stripped of their prized military made the Germans resent the Weimar Republic and idolize anyone who stood up to it. Austria also found the treaty unjust, which encouraged Hitler's popularity.

These conditions generated bitter resentment towards the war's victors, who had promised the people of Germany that U.S. President Woodrow Wilson's Fourteen Points would be a guideline for peace; however, the United States played only a minor role in World War I and Wilson could not convince the Allies to agree to adopt his Fourteen Points. Many Germans felt that the German government had agreed to an armistice based on this understanding, while others felt that the German Revolution of 1918–1919 had been orchestrated by the "November criminals" who later assumed office in the new Weimar Republic. The Japanese also started to express resentment against the countries of Western Europe due to the way they were treated during the negotiations of the Treaty of Versailles; their proposition to start bringing the issue of the current racial equality was not put in the final draft and was hardly talked about at the table with nothing given in reward for Japanese participation in the war. The economic and psychological legacies of the First World War persisted well into the interwar period.

Failure of the League of Nations

The League of Nations was an international peacekeeping organization founded after World War I with the explicit goal of preventing future wars. The League's methods included disarmament, collective security, settling disputes between countries through negotiation diplomacy, and improving global welfare. The diplomatic philosophy behind the League represented a fundamental shift in thought from the preceding century. The old philosophy of "concert of nations", growing out of the Congress of Vienna (1815), saw Europe as a shifting map of alliances among nation-states, creating a balance of power maintained by strong armies and secret agreements. Under the new philosophy, the League would act as a government of governments, with the role of settling disputes between individual nations in an open and legalist forum. Despite President of the United States Woodrow Wilson being the League's chief architect, the United States never joined the League of Nations, which lessened its power and credibility—the addition of a burgeoning industrial and military world power such as the United States might have added more force behind the League's demands and requests. 

The official opening of the League of Nations, 15 November 1920
 
The League lacked an armed force of its own and so depended on member nations to enforce its resolutions, uphold economic sanctions that the League ordered, or provide an army when needed for the League to use. However, individual governments were often very reluctant to do so. After numerous notable successes and some early failures in the 1920s, the League ultimately proved incapable of preventing aggression by the Axis Powers in the 1930s. The reliance upon unanimous decisions, the lack of an independent body of armed forces, and the continued self-interest of its leading members meant that this failure was arguably inevitable.

Expansionism and militarism

Expansionism is the doctrine of expanding the territorial base (or economic influence) of a country, usually by means of military aggression. Militarism is the principle or policy of maintaining a strong military capability to use aggressively to expand national interests and/or values, with the view that military efficiency is the supreme ideal of a state.

Though the Treaty of Versailles and the League of Nations had sought to stifle expansionist and militarist policies by all actors, the conditions their creators had imposed on the world's new geopolitical situation and the technological circumstances of the era only emboldened the re-emergence of these ideologies during the interwar period. By the early 1930s, a highly militaristic and aggressive national ideology prevailed in Germany, Japan, and Italy. This attitude fueled advancements in military technology, subversive propaganda, and ultimately territorial expansion as well. It is has been observed that the leaders of countries that have been suddenly militarized often feel a need to prove that their armies are formidable, and this was often a contributing factor in the start of conflicts in the interwar period such as the Second Italo-Abyssinian War and the Second Sino-Japanese War.

In Italy, Benito Mussolini sought to create a New Roman Empire based around the Mediterranean. It invaded Ethiopia as early as 1935, Albania in early 1938, and later invaded Greece. This provoked angry words and an oil embargo from the League of Nations, which failed.

Under the Nazi regime, Germany began its own program of expansion, seeking to restore the "rightful" boundaries of historic Germany. As a prelude toward these goals the Rhineland was remilitarized in March 1936. Also of importance was the idea of a Greater Germany, supporters of which hoped to unite the German people under one nation state, which included all territories where Germans lived, regardless of whether they happened to be a minority in a particular territory. After the Treaty of Versailles, a unification between Germany and a newly formed German-Austria, a successor rump state of Austria-Hungary, was prohibited by the Allies despite the majority of Austrian Germans supporting such a union.

During the period of the Weimar Republic (1919–1933), the Kapp Putsch, an attempted coup d'état against the republican government, was launched by disaffected members of the armed forces. After this event, some of the more radical militarists and nationalists were submerged in grief and despair into the NSDAP, while more moderate elements of militarism declined. The result was an influx of militarily inclined men into the Nazi Party which, when combined with their racial theories, fueled irredentist sentiments and put Germany on a collision course for war with its immediate neighbors.

Japanese march into Zhengyangmen of Beijing after capturing the city in July 1937

In Asia, the Empire of Japan harbored expansionist desires towards Manchuria and the Republic of China. Two contemporaneous factors in Japan contributed both to the growing power of its military and chaos within its ranks leading up to the Second World War. One was the Cabinet Law, which required the Imperial Japanese Army (IJA) and Imperial Japanese Navy (IJN) to nominate cabinet members before changes could be formed. This essentially gave the military veto power over the formation of any Cabinet in the ostensibly parliamentary country. The other factor was gekokujō, or institutionalized disobedience by junior officers. It was not uncommon for radical junior officers to press their goals to the extent of assassinating their seniors. In 1936, this phenomenon resulted in the February 26 Incident, in which junior officers attempted a coup d'état and killed leading members of the Japanese government. In the 1930s, the Great Depression wrecked Japan's economy and gave radical elements within the Japanese military the chance to force the entire military into working towards the conquest of all of Asia. For example, in 1931 the Kwantung Army (a Japanese military force stationed in Manchuria) staged the Mukden Incident, which sparked the invasion of Manchuria and its transformation into the Japanese puppet state of Manchukuo.

Germans vs Slavs

Twentieth-century events marked the culmination of a millennium-long process of intermingling between Germans and Slavic peoples. The rise of nationalism in the 19th century made race a centerpiece of political loyalty. The rise of the nation-state had given way to the politics of identity, including pan-Germanism and pan-Slavism. Furthermore, social Darwinist theories framed the coexistence as a "Teuton vs. Slav" struggle for domination, land, and limited resources. Integrating these ideas into their own worldview, the Nazis believed that the Germans, the "Aryan race", were the master race and that the Slavs were inferior.

Japan's seizure of resources and markets

Japanese occupation of China in 1937

Other than a few coal and iron deposits, and a small oil field on Sakhalin Island, Japan lacked strategic mineral resources. At the start of the 20th century in the Russo-Japanese War, Japan had succeeded in pushing back the East Asian expansion of the Russian Empire in competition for Korea and Manchuria.

Japan's goal after 1931 was economic dominance of most of East Asia, often expressed in Pan-Asian terms of "Asia for the Asians.". Japan was determined to dominate the China market, which the U.S. and other European powers had been dominating. On October 19, 1939, the American Ambassador to Japan, Joseph C. Grew, in a formal address to the America-Japan Society stated:
the new order in East Asia has appeared to include, among other things, depriving Americans of their long established rights in China, and to this the American people are opposed ... American rights and interests in China are being impaired or destroyed by the policies and actions of the Japanese authorities in China.
In 1937 Japan invaded Manchuria and China proper. Under the guise of the Greater East Asia Co-Prosperity Sphere, with slogans as "Asia for the Asians!" Japan sought to remove the Western powers' influence in China and replace it with Japanese domination.

The ongoing conflict in China led to a deepening conflict with the U.S., where public opinion was alarmed by events such as the Nanking Massacre and growing Japanese power. Lengthy talks were held between the U.S. and Japan. When Japan moved into the southern part of French Indochina, President Roosevelt chose to freeze all Japanese assets in the U.S. The intended consequence of this was the halt of oil shipments from the U.S. to Japan, which had supplied 80 percent of Japanese oil imports. The Netherlands and Britain followed suit. With oil reserves that would last only a year and a half during peacetime (much less during wartime), this ABCD line left Japan two choices: comply with the U.S.-led demand to pull out of China, or seize the oilfields in the East Indies from the Netherlands. The Japanese government deemed it unacceptable to retreat from China.

The Mason-Overy Debate: "The Flight into War" theory

In the late 1980s, the British historian Richard Overy was involved in a historical dispute with Timothy Mason that mostly played out over the pages of the Past and Present journal over the reasons for the outbreak of World War II in 1939. Mason had contended that a "flight into war" had been imposed on Adolf Hitler by a structural economic crisis, which confronted Hitler with the choice of making difficult economic decisions or aggression. Overy argued against Mason's thesis, maintaining that though Germany was faced with economic problems in 1939, the extent of these problems cannot explain aggression against Poland and the reasons for the outbreak of war were due to the choices made by the Nazi leadership.

Mason had argued that the German working-class was always to the Nazi dictatorship; that in the over-heated German economy of the late 1930s, German workers could force employers to grant higher wages by leaving for another firm that would grant the desired wage increases; that this was a form of political resistance and this resistance forced Adolf Hitler to go to war in 1939. Thus, the outbreak of the Second World War was caused by structural economic problems, a "flight into war" imposed by a domestic crisis. The key aspects of the crisis were according to Mason, a shaky economic recovery was threatened by a rearmament program that was overwhelming the economy and in which the Nazi regime's nationalist bluster limited its options. In this way, Mason articulated a Primat der Innenpolitik ("primacy of domestic politics") view of World War II's origins through the concept of social imperialism. Mason's Primat der Innenpolitik thesis was in marked contrast to the Primat der Außenpolitik ("primacy of foreign politics) usually used to explain World War II. In Mason's opinion, German foreign policy was driven by domestic political considerations, and the launch of World War II in 1939 was best understood as a "barbaric variant of social imperialism".

Mason argued that "Nazi Germany was always bent at some time upon a major war of expansion." However, Mason argued that the timing of such a war was determined by domestic political pressures, especially as relating to a failing economy, and had nothing to do with what Hitler wanted. In Mason's view in the period between 1936–41, it was the state of the German economy, and not Hitler's 'will' or 'intentions' that was the most important determinate on German decision-making on foreign policy. Mason argued that the Nazi leaders were deeply haunted by the November Revolution of 1918, and was most unwilling to see any fall in working class living standards out of the fear that it might provoke another November Revolution. According to Mason, by 1939, the "overheating" of the German economy caused by rearmament, the failure of various rearmament plans produced by the shortages of skilled workers, industrial unrest caused by the breakdown of German social policies, and the sharp drop in living standards for the German working class forced Hitler into going to war at a time and place not of his choosing. Mason contended that when faced with the deep socio-economic crisis the Nazi leadership had decided to embark upon a ruthless 'smash and grab' foreign policy of seizing territory in Eastern Europe which could be pitilessly plundered to support living standards in Germany. Mason described German foreign policy as driven by an opportunistic 'next victim' syndrome after the Anschluss, in which the "promiscuity of aggressive intentions" was nurtured by every successful foreign policy move. In Mason's opinion, the decision to sign the German-Soviet Non-Aggression Pact with the Soviet Union and to attack Poland and the running of the risk of a war with Britain and France were the abandonment by Hitler of his foreign policy program outlined in Mein Kampf forced on him by his need to stop a collapsing German economy by seizing territory abroad to be plundered.

For Overy, the problem with Mason's thesis was that it rested on the assumption that in a way not shown by records, information was passed on to Hitler about the Reich's economic problems. Overy argued that there was a difference between economic pressures induced by the problems of the Four Year Plan and economic motives to seize raw materials, industry and foreign reserves of neighboring states as a way of accelerating the Four Year Plan. Overy asserted that Mason downplayed the repressive capacity of the German state as a way of dealing with domestic unhappiness. Finally, Overy argued that there is considerable evidence that the German state felt they could master the economic problems of rearmament; as one civil servant put it in January 1940 "we have already mastered so many difficulties in the past, that here too, if one or other raw material became extremely scarce, ways and means will always yet be found to get out of a fix".

Proximate causes

Nazi dictatorship

Adolf Hitler in Bad Godesberg, Germany, 1938
 
Hitler and his Nazis took full control of Germany in 1933–34 (Machtergreifung), turning it into a dictatorship with a highly hostile outlook toward the Treaty of Versailles and Jews. It solved its unemployment crisis by heavy military spending.

Hitler's diplomatic tactics were to make seemingly reasonable demands, then threatening war if they were not met; concessions were made, he accepted them and moved onto a new demand. When opponents tried to appease him, he accepted the gains that were offered, then went to the next target. That aggressive strategy worked as Germany pulled out of the League of Nations (1933), rejected the Versailles Treaty and began to re-arm with the Anglo-German Naval Agreement (1935), won back the Saar (1935), re-militarized the Rhineland (1936), formed an alliance ("axis") with Mussolini's Italy (1936), sent massive military aid to Franco in the Spanish Civil War (1936–39), seized Austria (1938), took over Czechoslovakia after the British and French appeasement of the Munich Agreement of 1938, formed a peace pact with Stalin's Russia in August 1939 – and finally invaded Poland in September 1939.

Re-militarization of the Rhineland

In violation of the Treaty of Versailles and the spirit of the Locarno Pact and the Stresa Front, Germany re-militarized the Rhineland on March 7, 1936. It moved German troops into the part of western Germany where, according to the Versailles Treaty, they were not allowed. France could not act because of political instability at the time. King Edward VIII, who thought the Versailles provision was unjust, ordered the government to stand down.

Italian invasion of Ethiopia (Abyssinia)

After the Stresa Conference and even as a reaction to the Anglo-German Naval Agreement, Italian dictator Benito Mussolini attempted to expand the Italian Empire in Africa by invading the Ethiopian Empire (also known as Abyssinia). The League of Nations declared Italy the aggressor and imposed sanctions on oil sales that proved ineffective. Italy annexed Ethiopia on May 7 and merged Ethiopia, Eritrea, and Somaliland into a single colony known as Italian East Africa. On June 30, 1936, Emperor Haile Selassie gave a stirring speech before the League of Nations denouncing Italy's actions and criticizing the world community for standing by. He warned that "It is us today. It will be you tomorrow". As a result of the League's condemnation of Italy, Mussolini declared the country's withdrawal from the organization.

Spanish Civil War

Francisco Franco and Heinrich Himmler in Madrid, Spain, 1940

Between 1936 and 1939, Germany and Italy lent support to the Nationalists led by general Francisco Franco in Spain, while the Soviet Union supported the existing democratically elected government, the Spanish Republic, led by Manuel Azaña. Both sides experimented with new weapons and tactics. The League of Nations was never involved, and the major powers of the League remained neutral and tried (with little success) to stop arms shipments into Spain. The Nationalists eventually defeated the Republicans in 1939.

Spain negotiated with joining the Axis but remained neutral during World War II, and did business with both sides. It also sent a volunteer unit to help the Germans against the USSR. Whilst it was considered in the 1940s and 1950s to be a prelude to World War II and It prefigured the war to some extent (as it changed it into an antifascists contest after 1941), it bore no resemblance to the war that started in 1939 and had no major role in causing it.

Second Sino-Japanese War

In 1931 Japan took advantage of China's weakness in the Warlord Era and fabricated the Mukden Incident in 1931 to set up the puppet state of Manchukuo in Manchuria, with Puyi, who had been the last emperor of China, as its emperor. In 1937 the Marco Polo Bridge Incident triggered the Second Sino-Japanese War.

The invasion was launched by the bombing of many cities such as Shanghai, Nanjing and Guangzhou. The latest, which began on 22 and 23 September 1937, called forth widespread protests culminating in a resolution by the Far Eastern Advisory Committee of the League of Nations. The Imperial Japanese Army captured the Chinese capital city of Nanjing, and committed war crimes in the Nanjing massacre. The war tied down large numbers of Chinese soldiers, so Japan set up three different Chinese puppet states to enlist some Chinese support.

Anschluss

Cheering crowds greet the Nazis in Innsbruck
 
The Anschluss was the 1938 annexation by threat of force of Austria into Germany. Historically, the Pan-Germanism idea of creating a Greater Germany to include all ethnic Germans into one nation-state was popular for Germans in both Austria and Germany.

1937 ethno-linguistic situation in central Europe

One of the Nazi party's points was "We demand the unification of all Germans in the Greater Germany on the basis of the people's right to self-determination."

The Stresa Front of 1935 between Britain, France and Italy had guaranteed the independence of Austria, but after the creation of the Rome-Berlin Axis Mussolini was much less interested in upholding its independence.

The Austrian government resisted as long as possible, but had no outside support and finally gave in to Hitler's fiery demands. No fighting occurred as most Austrians were enthusiastic, and Austria was fully absorbed as part of Germany. Outside powers did nothing. Italy had little reason for continued opposition to Germany, and was if anything drawn in closer to the Nazis.

Munich Agreement

The Sudetenland was a predominantly German region inside Czechoslovakia alongside its border with Germany. Its more than three million ethnic Germans comprised almost a quarter of the population of Czechoslovakia. In the Treaty of Versailles it was given to the new Czechoslovak state against the wishes of much of the local population. The decision to disregard their right to self determination was based on French intent to weaken Germany. Much of Sudetenland was industrialized.

British Prime Minister Neville Chamberlain and Hitler at a meeting in Germany on 24 September 1938, where Hitler demanded annexation of Czech border areas without delay

Czechoslovakia had a modern army of 38 divisions, backed by a well-noted armament industry (Škoda) as well as military alliances with France and the Soviet Union. However its defensive strategy against Germany was based on the mountains of the Sudetenland.

Hitler pressed for the Sudetenland's incorporation into the Reich, supporting German separatist groups within the Sudeten region. Alleged Czech brutality and persecution under Prague helped to stir up nationalist tendencies, as did the Nazi press. After the Anschluss, all German parties (except the German Social-Democratic party) merged with the Sudeten German Party (SdP). Paramilitary activity and extremist violence peaked during this period and the Czechoslovakian government declared martial law in parts of the Sudetenland to maintain order. This only complicated the situation, especially now that Slovakian nationalism was rising, out of suspicion towards Prague and Nazi encouragement. Citing the need to protect the Germans in Czechoslovakia, Germany requested the immediate annexation of the Sudetenland.

In the Munich Agreement of September 30, 1938, British, French and Italian prime ministers appeased Hitler by giving him what he wanted, hoping he would not want any more. The conferring powers allowed Germany to move troops into the region and incorporate it into the Reich "for the sake of peace." In exchange for this, Hitler gave his word that Germany would make no further territorial claims in Europe. Czechoslovakia was not allowed to participate in the conference. When the French and British negotiators informed the Czechoslovak representatives about the agreement, and that if Czechoslovakia would not accept it, France and Britain would consider Czechoslovakia to be responsible for war, President Edvard Beneš capitulated. Germany took the Sudetenland unopposed.

Chamberlain's policies have been the subject of intense debate for more than seventy years among academics, politicians, and diplomats. The historians' assessments have ranged from condemnation for allowing Hitler's Germany to grow too strong, to the judgment that Germany was so strong that it might well win a war and that postponement of a showdown was in their country's best interests. 

German occupation and Slovak independence

All territories taken from Czechoslovakia by its neighbours in October 1938 ("Munich Dictate") and March 1939

In March 1939, breaking the Munich Agreement, German troops invaded Prague, and with the Slovaks declaring independence, the country of Czechoslovakia disappeared. The entire ordeal was the last show of the French and British policy of appeasement.

Italian invasion of Albania

After the German occupation of Czechoslovakia, Benito Mussolini feared for Italy becoming a second-rate member of the Axis. Rome delivered Tirana an ultimatum on March 25, 1939, demanding that it accede to Italy's occupation of Albania. King Zog refused to accept money in exchange for countenancing a full Italian takeover and colonization of Albania. On April 7, 1939, Italian troops invaded Albania. Albania was occupied after a 3 days campaign with minimal resistance offered by the Albanian forces.

Soviet–Japanese Border War

In 1939, the Japanese attacked west from Manchuria into the Mongolian People's Republic, following the earlier Battle of Lake Khasan in 1938. They were decisively beaten by Soviet units under General Georgy Zhukov. Following this battle, the Soviet Union and Japan were at peace until 1945. Japan looked south to expand its empire, leading to conflict with the United States over the Philippines and control of shipping lanes to the Dutch East Indies. The Soviet Union focused on her western border, but leaving 1 million to 1.5 million troops to guard the frontier with Japan.

Danzig crisis


After the final fate of Czechoslovakia proved that the Führer's word could not be trusted, Britain and France decided on a change of strategy. They decided any further unilateral German expansion would be met by force. The natural next target for the Third Reich's further expansion was Poland, whose access to the Baltic sea had been carved out of West Prussia by the Versailles treaty, making East Prussia an exclave. The main port of the area, Danzig, had been made a free city-state under Polish influence guaranteed by the League of Nations, a stark reminder to German nationalists of the Napoleonic free city established after the French emperor's crushing victory over Prussia in 1807. 

After taking power, the Nazi government made efforts to establish friendly relations with Poland, resulting in the signing of the ten-year German–Polish Non-Aggression Pact with the Piłsudski regime in 1934. In 1938, Poland participated in the dismemberment of Czechoslovakia by annexing Zaolzie. In 1939, Hitler claimed extraterritoriality for the Reichsautobahn Berlin-Königsberg and a change in Danzig's status, in exchange for promises of territory in Poland's neighbours and a 25-year extension of the non-aggression pact. Poland refused, fearing losing de facto access to the sea, subjugation as a German satellite state or client state, and future further German demands.[56][57] In August 1939, Hitler delivered an ultimatum to Poland on Danzig's status.

Polish alliance with the Entente

In March 1939, Britain and France guaranteed the independence of Poland. Hitler's claims in the summer of 1939 on Danzig and the Polish Corridor provoked yet another international crisis. On August 25, Britain signed the Polish-British Common Defence Pact.

Molotov–Ribbentrop Pact

Nominally, the Molotov–Ribbentrop Pact was a non-aggression treaty between Germany and the Soviet Union. It was signed in Moscow on August 23, 1939, by the Soviet foreign minister Vyacheslav Molotov and the German foreign minister Joachim von Ribbentrop.

In 1939, neither Germany nor the Soviet Union were ready to go to war with each other. The Soviet Union had lost territory to Poland in 1920. Although officially labeled a "non-aggression treaty", the pact included a secret protocol, in which the independent countries of Finland, Estonia, Latvia, Lithuania, Poland and Romania were divided into spheres of interest of the parties. The secret protocol explicitly assumed "territorial and political rearrangements" in the areas of these countries.
Subsequently, all the mentioned countries were invaded, occupied, or forced to cede part of their territory by either the Soviet Union, Germany, or both.

Declarations of war

Invasion of Poland

Germany invaded Poland on 1 September 1939 which directly led to the Anglo-French declaration of war on Germany on 3 Sept. The Soviet Union joined Germany's invasion of Poland on 17 September.
 
Between 1919 and 1939 Poland pursued a policy of balancing between the Soviet Union and Nazi Germany, seeking non-aggression treaties with both. In early 1939 Germany demanded that Poland join the Anti-Comintern Pact as a satellite state of Germany. Poland, fearing a loss of independence, refused, and Hitler told his generals on 23 May 1939 that the reason for invading Poland was not Danzig: "Danzig is not the issue at stake. It's a matter of extending our living space in the East..." To deter Hitler, Britain and France announced that an invasion would mean war and tried to convince the Soviet Union to join in this deterrence. The USSR, however, gained control of the Baltic states and parts of Poland by allying with Germany, which it did through the secret Molotov–Ribbentrop Pact in August 1939. London's attempt at deterrence failed, but Hitler did not expect a wider war. Germany invaded Poland on September 1, 1939, and rejected the British and French demands that it withdraw, resulting in their declaration of war on September 3, 1939, in accordance with the defense treaties with Poland that they had signed and publicly announced.

Invasion of the Soviet Union

Germany attacked the Soviet Union in June 1941. Hitler believed that the Soviet Union could be defeated in a fast-paced and relentless assault that capitalized on the Soviet Union's ill-prepared state, and hoped that success there would bring Britain to the negotiation table, ending the war altogether.

Attacks on Pearl Harbor, the Philippines, British Malaya, Singapore and Hong Kong

The US government and the American public in general had been supportive of China, condemning the colonialist policies of the European powers and Japan, and promoting a so-called Open Door Policy. Many Americans viewed the Japanese as an aggressive and/or inferior race. The Nationalist Government of Chiang Kai-shek held friendly relations with the United States, which opposed Japan's invasion of China in 1937 that it considered an illegal violation of the sovereignty of the Republic of China, and offered the Nationalist Government diplomatic, economic, and military assistance during its war against Japan. Diplomatic friction between the US and Japan manifested itself in events like the Panay incident in 1937 and the Allison incident in 1938.

Japanese troops entering Saigon

Reacting to Japanese pressure on French authorities of French Indochina to stop trade with China, the U.S. began restricting trade with Japan in July 1940. The cutoff of all oil shipments in 1941 was decisive, for the U.S., Britain and the Netherlands provided almost all of Japan's oil. In September 1940, the Japanese invaded Vichy French Indochina and occupied Tonkin in order to prevent China from importing arms and fuel through French Indochina along the Sino-Vietnamese Railway, from the port of Haiphong through Hanoi to Kunming in Yunnan. The U.S.decided the Japanese had now gone too far and decided to force a roll-back of its gains. In 1940–41, the U.S. and China decided to organize a volunteer squadron of American planes and pilots to attack Japan from Chinese bases. Known as the Flying Tigers, the unit was commanded by Claire Lee Chennault. Their first combat came two weeks after the attack on Pearl Harbor.

Taking advantage of the situation, Thailand launched the Franco-Thai War in October 1940. Japan stepped in as a mediator for the Frenco-Thai war in May 1941, allowing its ally to occupy bordering provinces in Cambodia and Laos. In July 1941, as operation Barbarossa had effectively neutralized the Soviet threat, the faction of the Japanese military junta supporting the "Southern Strategy", pushed through the occupation of the rest of French Indochina.

The United States reacted by seeking to bring the Japanese war effort to a complete halt by imposing a full embargo on all trade between the United States to Japan on 1 August 1941, demanding that Japan withdraw all troops from both China and Indochina. Japan was dependent on the United States for 80 percent of its oil, resulting in an economic and military crisis for Japan that could not continue its war effort with China without access to petroleum and oil products.

Attack on Pearl Harbor, December 1941

On 7 December 1941, without any prior declaration of war, the Imperial Japanese Navy attacked Pearl Harbor with the aim of destroying the main American battle fleet at anchor. At the same time, other Japanese forces attacked the U.S.-held Philippines and the British Empire in Malaya, Singapore, and Hong Kong. The following day, an official Japanese declaration of war on the United States and the British Empire was printed on the front page of all Japanese newspapers' evening editions. Due to international time differences, this announcement took place between midnight and 3 a.m. on 8 December in North America, and at about 8 a.m. on 8 December in the UK.

Canada declared war on Japan on the evening of 7 December; a royal proclamation affirmed the declaration the next day. The United Kingdom declared war on Japan on the morning of 8 December, specifically identifying the attacks on Malaya, Singapore and Hong Kong as the cause, and omitting any mention of Pearl Harbor. The United States declared war upon Japan on the afternoon of 8 December, some nine hours after the UK, identifying only "unprovoked acts of war against the Government and the people of the United States of America" as the cause.

Four days later the U.S was brought into the European war when on December 11, 1941, Nazi Germany and Fascist Italy declared war on the United States. Hitler chose to declare that the Tripartite Pact required that Germany follow Japan's declaration of war; although American destroyers escorting convoys and German U-boats were already de facto at war in the Battle of the Atlantic. This declaration effectively ended isolationist sentiment in the U.S. and the United States immediately reciprocated, formally entering the war in Europe.

Timeline of the Great Depression

From Wikipedia, the free encyclopedia

The initial economic collapse which resulted in the Great Depression can be divided into two parts: 1929 to mid-1931, and then mid-1931 to 1933. The initial decline lasted from mid-1929 to mid-1931. During this time, most people believed that the decline was merely a bad recession, worse than the recessions that occurred in 1923 and 1927, but not as bad as the Depression of 1920-21. Economic forecasters throughout 1930 optimistically predicted an economic rebound come 1931, and felt vindicated by a stock market rally in the spring of 1930.
 
The stock market crash in the first few weeks had a limited direct effect on the broader economy, as only 16% of the U.S. population was invested in the market in any form. But thousands of investors and banks lost money when 10% of invested wealth was lost almost overnight, with prospect of further losses. The crash created uncertainty in people’s minds about the future of the economy. This distrust in future income reduced consumption expenditure. As demand for commodities decreased, so did their prices. However, many banks that had engaged in risky investments in the stock market, and/or had lent money to individuals engaged in trading, suffered balance sheet losses that reduced their capital ratios. Mounting losses from further stock market declines and a worsening macro-economy would further strain the banking system. Over $34 million in wealth would be lost from the collapses in leverage investment products in 1929 offered by Goldman Sachs alone.

An increasing number of bank failures in late-1930 interrupted the process of credit creation and reduced the money supply, harming consumption. After a second round of banking panics in mid-1931, there was a major change in people’s expectations about the future of the economy. This fear of reduced future income coupled with the Fed’s deflationary monetary policy resulted in a deflationary spiral that cratered consumer spending, business investment, and industrial production. This further depressed the economy until Roosevelt stepped into office in 1933 and ended the gold standard, thereby ending the deflationary policy.

A true understanding of the Great Depression requires not only knowledge of the U.S. monetary system but also the implications of the gold standard on its participatory nations. The gold standard made the involved nations interdependent on each other's policies. Due to a fixed exchange rate, the only way to affect the demand for gold was through interest rates. For example, if interest rates were high in one country, then investors would have no reason to exchange currency for gold and the gold reserves would remain stable. However, if interest rates were low in a different country then its investors would elect to move their funds abroad where interest rates were higher. In order to stop this from happening, each nation within the gold standard union had no choice but to raise its interest rates in correspondence with its fellow nation. This interconnectivity of deflationary policy amongst so many nations resulted in the prolongation of the greatest economic downturn.

This article focuses on the economic milestones, with some mention of the political and social impact of the depression on nations and classes in a global context.

1929

January - June: the Roaring Twenties continue unabated. The combined net profits of 536 manufacturing and trading companies showed a 36.6% increase over the same period in 1928, with steel production leading the way. Retail sales, construction starts, and railroad revenues set record after record. Stocks continue to make record gains. An enormous surplus of wheat from 1928 drives down wheat prices, straining commodity markets and farmers' incomes. Unemployment hovers around a robust 4%. US nominal GDP is $105 billion (it would not reach this level again until 1941).

March 25th: a mini-stock market crash occurs after the Federal Reserve warns of excessive speculation. However, the mini-crash was averted two days later when National City Bank pumped $25 million in credit into the stock market.

Summer: consumer spending and industrial production begin to stagnate. The Federal Reserve continues with its plan to raise interest rates from 4% in mid-1928 to 6% by mid-1929 in an attempt to combat speculative behavior. 

June 15th: the Agricultural Marketing Act of 1929 is signed into law, providing some $100 million in emergency loans to struggling farmers

May-September: the stock market makes almost entirely uninterrupted gains, gaining 20% over this period. 

August: a minor recession begins, two months before the Stock Market Crash. Steel production and automobile & house sales notably decline, construction stagnates, and consumer debt was reaching dangerous levels on account of easy credit. Over $8.5 billion of margin loans for stocks were outstanding, worth more than all currency circulating in the United States at the time. 

September 3rd: The Dow Jones peaks at 381.17. The stock market would not regain this peak until November 23rd, 1954. 

September 20th: The London Stock Exchange crashes after the collapse of Hatry Group on charges of fraud and forgery. £24 million in value is wiped out. The collapse shakes the confidence of American investors in the security of overseas investments. 

October 24th: Wall Street Crash of 1929 begins. Stocks lose over 11% of their value upon the opening bell. 

October 25th - 27th: Brief recovery on the market. 

October 29th: 'Black Tuesday'. U.S. Stock market collapse, the Dow Jones closing down over 12%. 

October 30th: one day recovery

November 1st: The Federal Reserve begins lowering the discount rate from its 6% level.

November 13th: stock market bottoms out at 198.60, followed by a bear market that would last until April 1930. Commodity prices, however, continue to decline steeply.

1930

Year: recession deepens. US GDP contracts by 8.5% and nominal GDP falls to $92 billion. Prices decline slightly but wages hold relatively steady. US annual inflation rate is -6.4%. Unemployment reaches 9%. 1,350 banks fail. 

April 17th: Dow reaches a secondary closing peak (i.e., bear market rally) of 294.07, followed by a long stagnation until a severe decline began in April 1931. This peak matches early-1929 levels, but is 30% below the September 1929 peak. 

May: Automobile sales fall below 1928 levels.

June 17th: Smoot-Hawley Tariff Act passed, placing more stress on the weakening global economy, primarily through the collapse in trade of agricultural products, which strained banks that had lent heavily to farmers. Further decreases in trade of manufactured products led to layoffs and reduced corporate profits, weakening the economy. General consensus among economists is that the Smoot-Hawley Act did not cause the Depression, but did worsen it and stunted recovery efforts after 1933. Exports declined from $5.2 billion in 1929 to just $1.7 billion in 1933. 

September - December: First major round of U.S. bank failures. Some $550 million in deposits are lost. Over 300 banks failed in December alone.

November: Caldwell & Company, a major conglomerate offering banking, insurance, and brokerage services in the Southern United States, collapses and triggered a cascading effect of bank runs on smaller banks in Tennessee and Kentucky. The collapse generates national headlines, contributing to the contagion of fear regarding the banking system. 

December: The Federal Reserve's federal funds rate reaches 2%, a then-record low.

December: Bank of United States (a private bank in New York City) collapses. The bank had over $160 million in deposits and was the fourth largest bank in the United States at the time, and its failure is widely considered to be the moment when the banking collapse in the United States hit a critical mass, sparking a nationwide run on the banking system that was a major contributor to the deflationary spiral of 1931-1933. 

1931

Unemployed men outside a soup kitchen in Depression-era Chicago, Illinois, the US, 1931.
 
Year: 2,294 banks went down with nearly $1.7 billion in deposits. 28,285 businesses failed for a daily rate of 133 failures in 1931. Unemployment rises to 16%. US nominal GDP falls to $77 billion, and growth is -8.5%. Annual inflation is -9.3%.

May 11th: Creditanstalt, Austria's premier bank with major stakes across a variety of industries, becomes insolvent after being forced to assume liabilities from three other insolvent banks, triggering a cascading effect of bank failures across Central Europe. Creditanstalt represented 16% of Austria's GDP, and could not find another institution to guarantee liquidity. 140 million Austrian Schillings were lost. The collapse of Creditanstalt caused the Bank of France, the National Bank of Belgium, the Netherlands Bank, and the Swiss National Bank to begin a run on the U.S. Dollar for their gold reserves, and forced the Federal Reserve to raise interest rates from 1.5% to 3.5% to maintain the gold standards, which in turn contributed to the deepening of the Depression and the second round of banking failures in the U.S. during the summer of 1931. 

May: The Federal Reserve's federal funds rate bottoms out at 1.5%. 

May–June: Second major round of U.S. bank failures and worsening economic situation contributes to permanent change in people's expectation of the economy. This run was centered on bank in Chicago, which suffered from real estate loan defaults. Of the 193 state-chartered banks in the Chicago area in 1929, only 35 would survive to the end of 1933. Chicago area banks engaged heavily in real estate lending between 1923 and 1929, and banks that had greater exposure to the real estate bust were very likely to fail. The deflationary spiral that began earlier in the year rapidly and severely intensifies.

June-July: German banking crisis. The Reichsbank loses 840 million marks in less than 3 weeks as investors pull out short-term deposits. Germany's second largest bank, Danatbank, becomes insolvent on July 13th. Two day bank holiday is declared. Industry suffers a catastrophic collapse. The Hoover Moratorium is issued June 20th, suspending reparation payments from Germany to stabilize the country. Although private banks in New York City and the Bank of England begin emergency lending to Germany, the banking crisis spills over into Hungary and Romania, and the collapse of the economy paves the way for Adolf Hitler's rise in the July 1932 and March 1933 elections. The contagion also puts increasing pressure on the United Kingdom.

August - deepening deficits and demands for a balanced budget lead to Ramsay MacDonald's Labour government raising taxes by £24 million and cutting spending by £96 million, most controversial was the 20% cut to unemployment benefits (a sum of £64 million). The U.K.'s public debt at the time was 180% of GDP, mostly left over from the expenses of World War One. Public outrage would lead to the Labour Party being virtually destroyed in the October 1931 election.

September 21st: Britain leaves the gold standard, and the Pound Sterling depreciates by 25%. Despite warning of disaster, the departure proves beneficial to the British economy, as exports become more competitive. Additionally, the Bank of England was now free to engage in money creation, and reduced interest rates from 6.00% to 2.00%. 

October 27th: the United Kingdom General election, 1931 takes place, destroying the Labour Party and delivering a landslide victory to the Conservatives. 

September - October: Substantial amount of dollar assets (primarily Federal Reserve Notes) are converted to gold in the US by European central banks seeking to cover losses from the panic that had been sweeping Europe since the collapse of CreditAnstalt. In response, the Federal Reserve increases the federal funds rate from 1.50% to 3.50% to stabilize the dollar, but this only worsens the Depression as banks are further strained. The New York Fed had loan $150 million in gold (some 240 tons) to European central banks, and the wisdom of this was questioned as European countries rapidly abandoned the gold standard. As deflation intensified, real interest rates were magnified and rewarded those who held onto money, thus contributing to the deflationary spiral.

1932

Year: Unemployment rises to 23%, GDP growth is -13%, annual inflation rate is -11%, 1,700 banks fail. US nominal GDP falls to $60 billion. Over 13 million in the U.S. are unemployed and 3.5 million in the U.K.

January 22nd - the Reconstruction Finance Corporation is created to lend $2 billion to troubled financial institutions that were not part of the Federal Reserve System that were solvent in the long-run. By 1941, the RFC would lend out some $9.5 billion to banks, railroads, and mortgage associations, as well as state and local governments.




April - June: Federal Reserve conducts open market transactions, increasing the money supply by $1 billion. 


Summer 1932: Majority of foreign trade restrictions take effect, from Smoot-Hawley in the U.S. and Imperial Preference in the British Empire

June 6th - the Revenue Act of 1932 is signed into law, raising taxes on personal income, corporate income, and sales taxes on various goods.

July: U.S. government discontinues open market operations.

July 8th: the Dow Jones Industrial Index bottoms out at 41.22, the lowest level recorded in the 20th Century and representing an 89% loss from its peak in September 1929. 

July 31st: the German federal election, July 1932 is held, and the Nazi Party, led by Adolf Hitler, becomes the largest party in parliament (but lacks a majority) 

November 6th: the German federal election, November 1932, the last free and fair all-German election until 1990, is held. A minor setback for the Nazi Party, a campaign of mass violence and intimidation would begin in the run up to the next election in March 1933. 

November 8th: Franklin D. Roosevelt elected 32nd President in a landslide, Democrats win massive majorities in both chambers of Congress.

1933

Year: inflation rate turns positive, at 1% annually. Quarterly GDP growth turns positive by summer, but overall annual rate is -1.3% growth. Unemployment peaks at 25%. 2 million are homeless. Industrial production is half of what it was in 1929. US nominal GDP bottoms out at $57 billion (down from $105 billion in 1929)

February 14th: Michigan becomes the first state in the U.S. to declare an indefinite bank holiday, in an attempt to stem the impending collapse of First National Bank of Detroit and the Guardian National Bank of Commerce, the two largest banks in Detroit. First National and Guardian National were threatened with failure if the Ford Motor Company made good on its desire to withdraw all of its deposits in the two banks; Ford needed the cash to cover its $75 million loss in 1932. At this time, over 80% of Detroit's manufacturing capacity laid idle, and over 400,000 people were unemployed. Michigan's bank holiday set off a contagion of fear across the country, and by March 6th an additional 37 states would declare indefinite bank holidays. 

March 4th: Franklin D. Roosevelt is inaugurated as President.

March 5th - the German federal election, March 1933 is held. The Nazi Party would win a narrow majority of seats, but only in coalition with the German National People's Party (DNVP). Though this would be the last free election before World War II, it is not considered to be a fair election, as the Nazi Party's paramilitary organizations waged a campaign of violence, censorship, intimidation, and harassment against all parties that opposed them, as well as surveillance of voting on election day itself. 

March 6th - Executive Order 2009 suspends all banking activity for one week, in response to renewed stress on major New York City banks that threatened another round of bank failures and further deepening of the Depression. By this time, 38 states had declared bank holidays. 

March 9th- The Emergency Banking Act was enacted, which enabled a restructuring of the banking system. Over 4,000 banks with $3.6 billion in deposits that were deemed irreparably insolvent were closed forever, but by March 15th, banks controlling some 90% of the nation's banking activities were back in business. By the end of March, over $1.1 billion in hoarded cash was deposited into the banking system.  These new deposits saved cash-starved banks and helped restart the money creation process after years of credit contraction. The Act also created the Federal Deposit Insurance Corporation (FDIC), which insured deposits up to $2,500 and helped restore confidence in the banking system.

March 20th - the controversial Economy Act of 1933 is signed into law, slashing $243 million in government salaries and pensions, and veterans' benefits. Despite the economic crisis, supermajorities of American economists, policymakers, and the general public believed that the federal government needed to balance the budget and avoid deficit spending, to avoid putting further strain on the bond market which would negatively affect government borrowing costs, banks, corporations, and foreign investors. From 1929 to 1933, the total debt owed by the U.S. government rose from $16.9 billion to over $23 billion. This "Economy" Act was designed to reduce government outlays and assuage fears about government debt and deficits. 

March 31st - The Civilian Conservation Corps, a public works relief program, is created. It would last until 1942 and is an icon of the New Deal programs.

April 5th - Executive Order 6102 of President Franklin D. Roosevelt issued, forbidding hoarding of gold coin, bullion, and certificates, effective from May 1, 1933 

May 12th - the Agricultural Adjustment Act is enacted, designed to boost agricultural prices by reducing surpluses.

May 27th - the Securities Act of 1933 is enacted, requiring the registration of all sales and purchases of financial securities, as well as the disclosure of critical financial information about the firms involved. The U.S. Securities and Exchange Commission was established the following year, which helped combat insider trading and reducing transaction risk.

July - Federal Reserve industrial production index rebounds to 85.5, a 57% increase over the 54.3 recorded in March 1933

November 8th - the Civil Works Administration is created, which would employ over 4 million people and distribute over $400 million in funds for work programs through its end on March 31, 1934, when it would be replaced by the more permanent Works Progress Administration
 
December 5th - Prohibition is repealed at the national level. 18 states continue with state-level prohibition. The end of Prohibition hurts organized crime, allows legal employment in alcoholic drink production, and increases state tax revenues.

Operator (computer programming)

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