BETWEEN THE FIRESHow Did the Boom and Bust Economy Affect Europe?The Weimar Republic●World War I not only devastated the nations that lost the war, but also most of the nations that won the war. Indeed, the economies of victorious Great Britain, Italy, and Russia faced many problems. Why did this happen? The war depleted the financial resources of these nations, and as a result, they compiled huge debts. Also, the war destroyed much of their infrastructure and industries, which needed to be rebuilt. In addition, most countries in Europe experienced major inflation.●The situation was even worse for the losing nations of Germany, Austria-Hungary, Turkey, and Bulgaria. In addition to the destruction caused by the war, these countries had to pay the entire cost of the war–about 186 billion dollars. A revolutionary movementswept across Germany and inspired the formation of the Weimar Republic “the German government between 1919 and 1933.”Germany●By that time, Germany had run out of manpower and, as a result, had to use child labor. After the war, this nation had difficulty reviving its industry. Germany and defeated nations had to pay their war debt with foreign securities and consumer products.●Since Germany could not afford to buy foreign securities, it attempted to repay with products made in Germany. However, nations did not want to buy inexpensive German products, since doing this would hinder the production of goods in their own countries. The German middle class was especially hard hit by their nation's economic problems.Italy●Italy perhaps received the fewest benefits of any nation that was victorious in World War I. After the war, the Allies gave Italy much less territory of the former Austria-Hungary than originally promised. Italian veterans became furious that they received so little for their sacrifices. In addition, unemployment in Italy skyrocketed. These problems led to worker strikes and demands by peasants for more land.●During this turmoil, a new movement called Fascism, led by Benito Mussolini, overthrew the government. The photograph shows Fascists marching on Rome to take control of the government. Soon, Mussolini established himself as the dictator of Italy.Russia●This war proved to be disastrous for the Russian economy. As a result, the ruler of Russia, Czar Nicholas, became very unpopular. In addition, most of the people in Russia were underpaid peasants who, for many years, were discontented with the wealthy Russian aristocrats, including the czar.●The hardships caused by Russia's involvement in the war only added to their discontent. Weakened by the war, the czar and his government were overthrown and replaced by a provisional government.Ireland
●After World War I, Great Britain faced severe economic problems, including reduced manufacturing and high unemployment.