Time Slip Reiwa Japan

015 - Great Depression - 1

At the end of the overheated economic activity, the Great Depression broke out, triggered by a stock market crash on the New York Stock Exchange. Germany, Italy, and the Soviet Union were among those hit hard. This brought war clouds to the world.

. . .

Germany

The poor relations with Japan, the United States, Britain, and France, with their leading economies and large markets, were a painful blow to Germany as a result of this recession. To begin with, the G4's economic activity had been stimulated by exchanges with Japan and they had made great strides with higher quality and lower priced products. Germany, on the other hand, had made some progress based on what was leaked to them, but there was no way they could compete. Although trade was still carried out in small amounts, it was not at a level that could support the worsening economy.

In the question of how to get the economy on an expansionary path, Germany did not have a monopolistic market outside the country where it could consume its production power. For this reason, it was desperately trying to make inroads into South China and the Soviet Union. South China also welcomed Germany's stance, as its relations with the G4 countries had deteriorated since the war with North China. In order to counter the flow of American-made weapons into North China, it was necessary to have the most advanced equipment they can get.

The same was true for the Soviet Union, which was not on friendly terms with the G4 due to the recent Soviet-Japanese War. They desperately needed Germany's cooperation for its economic development. With China and the Soviet Union as markets, the German economy could breathe a sigh of relief.

From a political point of view, however, another problem emerged. The G4 did not do anything to alleviate Germany's dire economic situation. Instead, they were pursuing policies that would hurt Germany. Britain and France had set up tariffs aimed at Germany. The US was seen as the enemy from the start because of its involvement in the North-South problem in China. Japan imported mostly food and resources, so Germany, which does not produce either, was not a good match for them. It was natural for the proud Germans to perceive the world as their enemy. *1

This resulted in the rise of the Nazi Party in Germany, and along with it, Adolf Hitler's face appeared on the front page of history.

. . .

Italy

Italy was even more miserable than Germany as the global economic downturn spilled over. The situation was the same, but unlike Germany, Italy was not able to enter the Soviet Union's or China's markets. It had some economic relations with the Soviet Union to a certain degree and the dictatorship of the Fascist Party had been established with a stable security situation, but the economic stagnation was still continuing. In order to break out of this situation, Italy sought new markets. This led to the search for new colonies.

. . .

Soviet Union

In response to the Great Depression and to cover up for the defeat against Japan in the Soviet-Japanese War, a Five-Year Plan was adopted to expand and develop the nation's strength on a grand scale. The problem was how to fund it. Everything, including the development of heavy industry and agriculture, required money. But the Soviet Union had no money. It had lost the Soviet-Japanese War, and reparations for that defeat weighed heavily on it.

That is why Stalin decided to carry out the Five-Year Plan as soon as he had finished killing his political enemies, the Trotskyists. The money to support this decision was to come from heavy taxation and the export of agricultural products. Heavy taxation was not a problem for either urban or rural areas. The problem was the export of crops.