💵Growth of the American Economy Unit 12 – World War I and the Roaring 20s Economy

Key Events and Timeline

• Assassination of Archduke Franz Ferdinand of Austria-Hungary by Serbian nationalist Gavrilo Princip on June 28, 1914 sparked the outbreak of World War I
• Austria-Hungary declared war on Serbia on July 28, 1914 in response to the assassination
• Germany, allied with Austria-Hungary, declared war on Russia and France in early August 1914
• Britain entered the war on August 4, 1914 after Germany invaded neutral Belgium
• The United States initially remained neutral but entered the war on April 6, 1917 after Germany resumed unrestricted submarine warfare
• Russia withdrew from the war in March 1918 following the Bolshevik Revolution and signed the Treaty of Brest-Litovsk with Germany
• The Armistice of November 11, 1918 ended the fighting on the Western Front, marking the end of World War I
• The Paris Peace Conference in 1919 resulted in the signing of the Treaty of Versailles, which imposed harsh terms on Germany

Causes and Global Context

• Nationalism, particularly in the Balkans, contributed to rising tensions and the formation of alliances
• Imperialism and colonial rivalries among European powers (Britain, France, Germany) heightened international competition
• The system of alliances divided Europe into two main camps: the Triple Alliance (Germany, Austria-Hungary, Italy) and the Triple Entente (France, Russia, Britain)
• Arms race between major powers, especially Germany and Britain, led to increased military spending and preparedness
• The decline of the Ottoman Empire created a power vacuum in the Balkans, leading to regional instability
• The Industrial Revolution enabled mass production of weapons and enhanced military capabilities
• Social Darwinism and the belief in the superiority of certain nations influenced aggressive foreign policies
• The assassination of Archduke Franz Ferdinand served as the immediate trigger for the war, but underlying causes had been building for years

Major Battles and Military Strategies

• The Western Front was characterized by trench warfare, with both sides engaged in a war of attrition
  • The First Battle of the Marne (September 1914) halted the German advance towards Paris and marked the beginning of trench warfare
  • The Battle of Verdun (February-December 1916) resulted in heavy casualties on both sides but ended in a stalemate
  • The Battle of the Somme (July-November 1916) was one of the bloodiest battles, with over 1 million casualties
• The Eastern Front saw more mobile warfare and significant territorial changes
  • The Battle of Tannenberg (August 1914) resulted in a decisive German victory over Russia
  • The Brusilov Offensive (June-September 1916) was a successful Russian offensive that forced Austria-Hungary to divert troops from the Western Front
• The use of chemical weapons, such as chlorine gas and mustard gas, introduced a new level of brutality to warfare
• The British naval blockade of Germany aimed to disrupt its economy and supply lines
• Germany employed unrestricted submarine warfare to counter the British blockade, leading to the sinking of merchant ships and civilian vessels
• The entry of the United States into the war in 1917 provided a significant boost to the Allied forces in terms of manpower and resources

Technological Advancements

• Machine guns revolutionized infantry combat, enabling rapid and continuous fire
• Artillery, including heavy siege guns and mortars, played a crucial role in bombardments and breaking through enemy defenses
• Poison gas, first used at the Second Battle of Ypres in 1915, introduced chemical warfare to the battlefield
• Tanks, first used by the British at the Battle of the Somme, provided a new means of breaking the stalemate of trench warfare
• Aircraft, initially used for reconnaissance, evolved to include fighter planes and bombers
  • Aerial combat and dogfights became a new dimension of warfare
  • Strategic bombing raids targeted enemy cities and industrial centers
• Submarines, employed by Germany, challenged British naval supremacy and disrupted Allied shipping
• Advances in medical technology, such as the use of X-rays and the development of blood transfusions, improved the treatment of wounded soldiers
• Wireless communication and the use of radio enabled better coordination and communication between units on the battlefield

Economic Impact of WWI

• The war resulted in massive government spending on military equipment, supplies, and personnel
• Governments raised taxes and borrowed heavily to finance the war effort, leading to increased national debts
• Industrial production shifted towards war-related goods, such as weapons, ammunition, and vehicles
• The mobilization of millions of men into the armed forces led to labor shortages in agriculture and industry
• Women entered the workforce in greater numbers to fill the gaps left by men, challenging traditional gender roles
• Rationing and price controls were implemented to manage scarce resources and prevent inflation
• The British naval blockade of Germany disrupted its economy and led to shortages of food and raw materials
• The destruction of infrastructure, including factories, roads, and bridges, had long-lasting economic consequences
• The war disrupted international trade and financial markets, leading to a global economic downturn

Post-War Recovery and the Roaring 20s

• The Treaty of Versailles imposed harsh reparations on Germany, crippling its economy and sowing the seeds of resentment
• The United States emerged as a global economic power, with a booming economy and a shift towards consumerism
• The "Roaring Twenties" in the United States were characterized by economic prosperity, technological advancements, and cultural changes
  • Mass production techniques, such as the assembly line, increased efficiency and output
  • The rise of the automobile industry and the expansion of electricity transformed daily life
  • The stock market boom and speculation led to increased wealth and a sense of optimism
• Europe struggled to recover from the war, with high unemployment, inflation, and political instability
• The Dawes Plan (1924) and the Young Plan (1929) attempted to address the issue of German reparations and stabilize the European economy
• The Great Depression, triggered by the stock market crash of 1929, ended the economic prosperity of the 1920s and had global repercussions

Social and Cultural Changes

• The war challenged traditional gender roles, with women taking on new responsibilities in the workforce and society
• The suffrage movement gained momentum, and women's right to vote was granted in many countries (United States, Britain, Germany) in the immediate post-war years
• The "Lost Generation" of writers and artists, disillusioned by the war, challenged traditional values and norms
• The Jazz Age in the United States saw the rise of new music, dance, and fashion styles
• The Harlem Renaissance celebrated African American culture and creativity
• The war and its aftermath led to a questioning of traditional authority and a desire for greater social and political change
• The rise of mass media, including radio and cinema, had a significant impact on popular culture and communication
• The war and the post-war period saw advancements in education and literacy rates

Legacy and Long-Term Effects

• The war resulted in the collapse of four empires: Ottoman, Austro-Hungarian, German, and Russian
• The redrawing of national boundaries and the creation of new states (Yugoslavia, Czechoslovakia) based on the principle of self-determination
• The League of Nations was established to promote international cooperation and prevent future wars, but it ultimately failed to maintain peace
• The war and the Treaty of Versailles left a legacy of bitterness and resentment, particularly in Germany, setting the stage for the rise of fascism and World War II
• The war accelerated the decline of European power and influence, while the United States and Japan emerged as rising global powers
• The war had a profound impact on art, literature, and intellectual thought, with themes of disillusionment, alienation, and the absurdity of war
• The war and its aftermath led to significant advancements in medicine, including the development of plastic surgery and the treatment of shell shock (PTSD)
• The war and the Roaring Twenties set the stage for the Great Depression and the economic and political challenges of the 1930s