1. Impact of the Great Depression Flashcards
What was the Great Depression caused by?
The Wall Street Crash
When did the American economy collapse?
October 1925, following the Wall Street Crash
What did American immediately do with loans after the Wall Street Crash?
America immediacy stopped foreign lending, and recalled loans from abroad
Why was the German economy especially vulnerable following the Wall Street Crash?
Because it was reliant on foreign capital, mostly from American loans (Dawes and Young Plan) and very dependent on foreign trade
Consequence of Wall Street Crash on German businesses which had relied on bank loans
They didn’t have enough money to sustain their production and pay their workers
What increased as a result of the Wall Street Crash?
Unemployment
Why did unemployment in Germany rise after the Wall Street Crash?
Because German businesses had less money to pay workers and the demand for consumer products dropped
What happened to many suppliers and businesses following the Wall Street Crash?
They struggled to pay off their loans and went bankrupt
What payments could many Germans not meet following the Wall Street Crash?
Rent or mortgage payments
What happened to many German banks following the Wall Street Crash? Impact of this
Many collapsed so people lost most of their savings and money
What did the German economy spiral into following the Wall Street Crash?
Economic depression
What did the Government do in July 1931 for 2 days in response to the Wall Street Crash?
Government closed banks and the stock exchange to prevent a complete collapse
Negative impact of rising unemployment following the Wall Street Crash on the Welfare State
Rapidly rising unemployment put enormous pressure on welfare provision
What did the welfare state to in an attempt to manage increasing unemployment following the Wall Street Crash? Result of this
Took steps to reduce the unemployment benefit which put pressure on local authorities
Registered unemployment in 1929
1.5 million
Registered unemployment in 1933
6 million
Agriculture production by 1929 compared to pre-war
Less than 3/4 of pre-war levels
What percentage did export trade fall by from 1929-32?
61%
What percentage did industrial production fall by from 1929-32?
58%