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Economics and Its Role in Rise to Power of Mao and Hitler

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Economics played a significant role in the rise of power of both the Nazi party and The Chinese Communist party. This essay will evaluate how the economic distress, and the weak economic policies of opposing parties, affected the rise to power, and It will also analyse other factors such as propaganda, ideologies and violence and how they contributed to the rise of power of the Nazis and CCP. It will also evaluate Holt’s argument which states that economics was the primary factor contradicting Fisher’s that it wasn't.

The economic distress in both nations Germany and China due to The great depression of 1930 in Germany and High inflation in China as espoused by Holt. The great depression in Germany led to 6 million unemployed and 50,000 business bankrupt while in China Inflation led to an increase in notes from 1.3 billion yuan in 1937 to 25 billion Yuan by 1948. Both counties were dealing with a failing economy and a failing government ultimately, as they were not able to help the people.This helped the Nazi and the CCP as they were able to The Weimar in Germany and Nationalist party in China failed to render to the needs of the people and in turn for that people started to look for better alternatives.The economic conditions were not being taken care by the Weimar or the Nationalists, and thus people turned to extremists like Hitler who promised them hope, food, bread and unity and Mao who also did the same. This is substantiated by the fact that Nazi party seats increased to 107 in 1907 and the CCP increased to 800,000 between 1937 and 1942. In addition, The CCP only had to target one social class, which were the peasants who made up 85% of the population and didn't need much convincing for votes. On the other hand, Germany was democratic which meant had to campaign themselves, and the voting rights were with the population, but this was reasonably possible as Hitler was widely popular amongst classes, as he promised them what they needed. Thus making economic distress more significant for Hitler than Mao. This is confirmed by Holts as he agrees that Economic suffering and the great depression were the most important for the rise of power of Hitler as they were democratic and Hitler needed to pursue more people.

The economic policies of previous governments in both nations significantly contributed to the rise of the power of Hitler and Mao. In Germany Welfare cuts in 1930 were not agreed on and ultimately led to the collapse of Muller Government and in China 1934 Paper money was stopped and a return of silver was seen, This was due to the Inflation. What was offered by Hitler and Mao gave people the belief that they are far better than the current government. Hitler’s immediate economic programme of 1932 and the CCP’S and the Yanan made them look much more stable as their government and far better. This was the only way most of the majority that this is the only way they could escape from their low standard of living. In addition, the economic policies of the previous governments were more significant for the rise of the power of Hitler as the economic conditions in Germany were much worse than of China. They had just experienced war and now were under the influence of a great depression, The standard of living was appalling and unemployment was very high 6 million in 1932. Thus Hitler’s plan was far significant as it made people want to vote for him and make sure their problems as a country would go away. Economic policies of previous governments were substantial in the rise to power of both China and Hitler, but it was more significant for Hitler.




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