Unit 8: Economic Crisis and War in the 20th Century
While the Industrial Revolution brought great prosperity to many parts of the world, it also ushered in many new challenges. In 1914, tensions between capitalist powers spilled over into war, and the new weapons of industrial age produced a horrific slaughter in Europe. After the war, industrial powers struggled to recover in a decade of economic highs and lows. The weak global economy collapsed in 1929, causing widespread unemployment in industrialized societies. The failure of the international community to maintain prosperity and peace led to the Second World War, which devastated Europe and Asia. After the war, the United States and its allies devised a new system for managing the international economy, while the Soviet Union and its allies pulled new satellite states into a socialist economic system.
In this unit, we will examine the effects of industrialization on war, as well as the effects of war on industrialization. We will also study the economic crises of the 1920s and 1930s and compare different recovery strategies.
Completing this unit should take you approximately 3 hours.
Upon successful completion of this unit, you will be able to:
- interpret the effect of industrialization on warfare using a variety of primary and secondary sources to contextualize World War I as an industrial war;
- identify the main events of the Great Depression and identify ways in which governments tried to recover from the Depression;
- explain the economic causes and effects of World War II;
- explain the importance of the Bretton Woods Conference and the Marshall Plan to the restructuring of the world economy on U.S. terms.
8.1: The First World War
8.1.1: Industrial Rivalry in Europe
Read this chapter of Lenin's book Imperialism, the Highest Stage of Capitalism to learn about the growing competition between capitalist businesses in the years leading up to 1914.
8.1.2: Industrialized Warfare
Read these seven pages and explore the linked content.
8.1.3: The United States and World War I
Read this article about U.S. involvement in the Great War.
8.2: The Depression
8.2.1: Boom and Bust in the 1920s
Read this article to learn about the main events of the Great Depression.
8.2.2: Recovery Efforts
Read this article to learn how governments tried to recover from the Great Depression.
- Receive a grade
The Great Depression was one of the most shocking setbacks in the process of global industrialization. The Great Depression challenged the most basic tenets of industrial capitalism around the world as prices and wages fell while unemployment skyrocketed. This exercise will help you understand the causes and effects of the Great Depression, as well as how governments tried to restore their economies and the lasting impact the Great Depression had on the modern world economy.
This assessment is ungraded, and will not affect your final course grade.
8.3: The Second World War
8.3.1: Causes
8.3.2: The U.S. Economy During the Second World War
Read this article to learn how World War Two transformed the U.S. economy.
8.4: The Postwar Order
8.4.1: Postwar Planning and the Bretton Woods Conference
Read this summary of agreements reached at the 1944 United Nations Monetary and Financial Conference at Bretton Woods to learn about the significance of the conference.
8.4.2: The Marshall Plan
Explore this page to learn about the key elements of the Marshall Plan for the reconstruction of Europe after 1945.
