How Economic Disarray and a Lack of Governmental Faith Led to the Rise of Totalitarianism in the 1930s and 1940s

This treaty's German currency losses exceeded $ 31.5 billion, leading to a serious economic downturn in Germany and high inflation in the German currency. This hyperinflation worsened the situation in Germany. The lack of basic knowledge such as food and clean living environment will lead to extensive hunger, civil war and illness. In Germany, the unemployment rate is close to 30%. Former member of the Communist Party Arthur Koestler wrote in his "Failed God" that he "lives in a collapsing society that craves faith."

Fascism and totalitarian adopted mercantilism in the 1930s and 1940s. After the stock market crash in 1929, each country used protectionism to protect employment. They responded to the Great Depression through tariffs. In 1930, the Smoot-Hawley Act imposed tariffs of 40 to 48% on 900 imported products. When other countries retaliated, world trade declined by 65% ​​and prolonged the economic recession. The old and new harmonize well with the communist government. They rely on a central plan to lead the economy. It allows them to regulate foreign trade. They will also coordinate the balance of payments and foreign exchange reserves. Selection of industry chosen by their leader. They participate in the currency war and lower the pricing power for export products. For example, China purchased US Treasury bonds to promote trade with the United States. As a result, China has become the largest foreign owner of US debt.

From the 1930s to the 1940s, some American businessmen were suffering from the direction of the country, the arrival of New Deal and the emergence of workers' movement. The importance of high wages to promote economic growth and development is higher than the concept of high profit. In order to resist "wandering socialism", Phillips - Feen has revealed how wealthians established think - tanks to promote anti - labor propaganda. Cooperate with prominent businessmen and retreat economic progress of many people to politicians like Ronald Reagan