The Beginning of World War II
"The era of anxiety and economic depression was also a time of growing strength for political dictatorship. Popularity elected governments and basic civil liberties declined drastically in Europe"(McKay 967). Most say the start of the second World War was due to the depression across the world. Others, like Monetarists, believe that the second World War was no accident. The worldwide depression left countries with dictatorship that seemed to be the wave of the future and therefore the start of World War II.
"Documents proving Hitler's dogged determination to wage a war of conquest are so many and so clear that whoever doubts them is either a liar or blind..."(Dollinger 12). After his victories in 1939 - 1941 he thought of himself as the "greatest general of all time." "Stalin and Hitler mobilized their people for enormous undertakings and ruled with unprecedented severity. Hitler's mobilization was ultimately directed toward racial aggression and territorial expansion, and this sudden attack on Poland in 1939 started World War II"(McKay 967).
The gold standard in the United States and France, who gained a lot of gold, failed to operate the standard correctly. France and the United States expanded too much or too little. Some view that the United States expanded too much in the 1920's, and into a deflationary degree. "United States failed to expand, as called for by its accumulation of gold during and immediately after the war, thus putting deflationary pressure on the world, especially on Great Britain"(Kinleberger 9). Tariffs were equally an expansion of the worldwide depression. "Currency appreciation is deflationary, but the counterpart of depreciation in other countries pushes in the opposite direction. It is therefore inadequate to explain world depression by referring to losses of gold or markets, a fall of prices, or currency appreciation without specifying why the expansionary force, which is a counterpart to the depressive factor specified, did not function properly"(Kindleberger 9).
The highest point of the depression which effected the world and the rise of Stalin and Hitler was the 1929 stock market crash. "To the extent that the depression was ushered in by the stock market crash, it was the crash in New York that was of consequence. Canadian prices went higher from 1926 and declined further from their peaks, compared to New York, they were the tail of the dog"(Kindleberger 95). This depression declined the imports of Germany along with the United States. Hitler and Stalin saw opportunities due to the depression of the United States.
"The most frightening dictatorship developed in Nazi Germany. A product of Hitler's evil genius as well as Germany's social and political situation and the general attack on liberalism and rationality in the age of anxiety, the Nazi movement shared some...