CHAPTER 5
Crisis Theory and the Rise of
Authoritarian Governments
MUSSOLINI: ITALY
A. Italy after WWI:
1. Fall of democracy:
• government promised many things after WWI but
failed to follow through:
-no jobs, sky-rocketing cost of living, strikes,
disillusionment/discontent with democratic
rulers
• government accused of being ineffective
2. Government:
• constitutional monarchy
• defined political parties slow to emerge because:
-not unified until 1870
-people not used to democratic procedures
• fighting and frequent elections (every 1 ½ years)
made decision making difficult at best
B. Mussolini: character
• stand for “virility and strength”
-public image always masculine and strong - pilot, horseman
etc., his love of the violin and arts were hidden
• willing to sacrifice everything for power
• problem: lacked self confidence - followed whomever’s advice
in times of crisis
• strength: his voice and ability to use it to stimulate action and
belief amongst people
C. Mussolini’s Rise to Power
• he switched his stand on issues many times in his rise to power
-ex. 1919 - tried to appeal to workers, when this did not work,
he switched to appeal to the wealthy business people which
was more successful
• hated socialists and communists
• Squadristi - created to attack, kill, threaten anyone who was
opposed to fascism beliefs
and all communists/socialists
-gained support of government and police
-used to help mobilize widespread support
D. New Fascist Government
• Chamber of Deputies continued to function - to leave the
appearance, at least at first, that parts of democracy still prevailed in
Italy but fascist party had control
• Mussolini and Fascist party changed laws and working of
government by:
-giving control of military to them
-municipal elections abolished, appointing people instead
-censorship of the news
-socialists and catholic trade unions ended
-abolished divorce
-special taxes put on bachelors
• Women limited to maximum of 10% of better paying jobs-- women
were expected to be at home, producing babies
HITLER’S RISE TO POWER
A. Hitler and Mussolini
 Both rose up in power using some basic same
methods in similar situations
 Similarities:
 Both countries had been recently unified
 Both had new democratic governments
 Both felt that the Treaty of Versailles in WWI was
unfair, did not give them enough
 Both blamed the democratic government for signing
the treaty
 Both used economic problems (and the dem. Gov’ts
inability to solve them quickly enough) and
communist fear to gain support
A. Hitler’s rise to power:
 Weimer Republic – parliamentary democratic system from 19191933
 Came into power to sign the treaty of Versailles, having taken over
from the autocratic ruler before (Wilhelm II)
 They came into a country completely in ruins – very little money,
had to pay reparations, war guilt clause
 The autocratic government that started this all escaped all blame
and it was placed on the Weimer republic
 After other revolutionary groups failed (Marxist/communist groups),
Hitler attempted the Beer Hall Putsch – Coup/revolution against
the gov’t but failed
 He was sent to jail and wrote Mein Kampf - My struggle
 Developed the National Socialist German Workers’ Party (Nazi
Party)
 Strengthened it by blaming others for problems and no hope in
Germany (Depression – 20% unemployment etc)
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Hitler rapidly gained seats in
each election – in Jan.1933
was declared the Chancellor
of Germany
**Enabling Acts – he passed
them and gave himself
complete (dictatorial) power
for 4 years, outlawed all
opposition
**Nuremberg Laws – 1935
passed them to start his
persecution of the Jews
throughout all Hitler used his
charisma, and personality to
‘win over’ people both within
his country and globally
NAZISM IN PRACTISE
A.
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Nazi Germany
Followed the ideas of Fascism
Collectivism – everyone (Germans) worked “together”
People were expected to give up all rights to serve Hitler and the nation
Individualism – some private ownership and economic freedom but you had to
follow the goals of Hitler
No personal freedoms unless stated by Hitler’s goals
Autocracy – one man had total power (Hitler)
Totalitarian rule – Nazi party controlled all aspects of the people’s lives
Authoritarian – Hitler had all powers and was justified to do whatever because
he thought he was a superior person
Hitler appointed advisors to government – didn’t dare disagree with his ideas
Majority Tyranny – Germans allowed to hold power – non Germans had no
rights
Elitism – only the Germans could rule with no accountability to the people
Gov’t was not responsible to anyone
Minority lives were threatened
A.
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Characteristics and Features:
Use of Force
Used to maintain power
SS were used to exterminate the Jews – Holocaust
Control of the Media
Controlled by the Nazi party to help indoctrinate the
people – told what storied to do etc.
Controlled Participation
Mass rallies used to ignite nationalism
Held plebiscites (votes) to gain support for his ideas – no
secret ballot and those who disagreed were severely
punished
Dissent was not allowed
Provisions for Changes
Hitler and the Nazi party could change the system
NAZISM: ECONOMICS
A. Fascism:
 Developed and used in Italy and Germany
 Economic plans were for military purposes, gov’t ownership of the means of production for nonmilitary purposes was minimal.
 Private ownership – with government control
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Nazism, foundation:
Variety of fascism – more racist and totalitarian
Rejected capitalism and communism ideologies
After WWI – financial ruins, huge debts, unemployment caused by the Treaty of Versailles
Hitler used propaganda against Jews, communists, allies and Weimer Republic, capitalists to
gain support
He realized that democratic means to get into gov’t would work best – voted into gov’t in 1933
election
C.
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Hitler’s Economic Objectives:
Never claimed one economic ideology
Most ideas benefited him, or the elite
Pragmatism - - practicality over ideology
- No one ideology can solve the problem, do what is necessary at the time (practical/real) to
achieve economic objectives
 Economic objectives relied on the advancement of the military – to return it to its previous glory
(despite going against the Treaty of Versailles)
- Huge gov’t contracts to industrialists
 Four-Year Plan (first)
- Priority – rearmament
- Establish public works program –road construction (7000km of highway built)
- Tax concessions and gov’t subsidies to private business – revive production and consumption
Financing:
 Reichsbank (Central bank) – controlled money, led by Schacht
- Gave unlimited financial credit to gov’t despite huge debts
- He created a dummy corporation, printed bills called Mefobills – based on supposed profits
from this fake corporation
- Mefobills was accepted by banks and contractors
- Sold to people with only 4% interest
- Goal was to raise the overall value of the currency
- Fooled the international banking community and experts
- Repaid the mefobills after 1936, once the inflation/unemployment had lowered and the real
value of the mark was better
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Hitler used the Jewish Community to finance the country:
- After the Kristallnacht (night of the broken glass – Nov.
9, 1938) – blamed the Jews for an assassination and
used it to gain support by the Germans
- Destroyed some shops, churches etc.
- Terrorized the owners, closed down stores
- Seized all assets (given to gov’t)
- Gave some businesses to Germans to own and control
- Fined the Jewish community 1 billion marks for the
assassination, pocketed 6 million marks in compensation
for damages after Nov. 9
Second Four – Year Plan
- Achieve self-sufficiency
- Germany felt they relied too heavily on other nations for
resources, needed to gain Eastern European support to
sell them (and only them) resources – so they could
control it
- Sold weapons to these countries for their supplies
(grain)
WWII – production rose (guns, munitions, planes etc),
enormous profits, preserved the right of entrepeneurs to
earn profits to motivate them to produce more