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%
What happened to companies following the Wall Street Crash?
They went bankrupt
Companies that survived cut wages, staff and working hours
During the Great Depression, what did Brüning do? Why?
Cut government spending on welfare state to reduce inflation
Result of Brüning cuffing government spending on welfare state?
Unemployed received less benefits from state
What put a strain on the Grand Coalition’s finances following the Wall Street Crash?
Unemployment benefits, falling tax revenues and falling global trade
How did the Grand Coalition split following the Wall Street Crash?
DVP wanted to reduce unemployment benefits but SPD warned to raise taxes
Nazi Party’s authoritarian belief
No political parties other than Nazis could be tolerated
Nazi Party’s totalitarian belief
Nazi believed it was the government’s duty to control everything in Germany (including press and education)
Nazi Party’s nationalistic belief
Nazis only interested in Germany and not international relations
Nazi Party’s militarism belief
Rearming and expanding Germany’s armed forces is essential
Nazi Party’s racial belief
Races like Jews, Slave and Romany to be inferior men
Nazi Party’s social Darwinist belief
If you can conquer others, you have right to do so
Why did the Nazi Party receive support from the lower middle-class?
Because they lost lots of savings and had lots of unemployment
Why did the Nazi Party receive support from the upper classes?
They believed they were better than others
Why did the Nazi Party receive support from the young voters?
Young voters had only experienced the Weimar Republic so they would vote Nazi Party as it offered alternative to Republic
Why did the Nazi Party receive support from the farmers?
Because they felt that they have been ignored under any president
What did the Communist (KPD) Party want society to be?
Classless and moneyless
What did the Communist (KPD) Party want to abolish?
Private property
Who voted for the Communist (KPD) Party?
Working classes
What towns were impacted the worst by the Great Depression?
Towns that depended on a single industry, as if that collapsed no one would have any income opportunity
What began to appear during the Great Depression as unemployed tenants were unable to pay their rents?
Tent cities and shanty towns
What percentage of men in 14-25 age group were unemployed in Hamburg in 1933?
39%
What age group had a high rate of unemployment?
Young people
Three consequences of youth unemployment
Juvenile crime
Political extremism
Schemes to help young people
What increased among 14-25 year olds?
Accusations of crimes
What age group’s involvement in extremist political organisations increased during the Great Depression?
Involvement of young men
What did Hitler Youth offer unemployed men?
Food, uniforms, shelter and excitement of fighting in street battles where they could relieve stresses of unemployment
What schemes were established to help young people?
Day centres
Emergency labour schemes
How popular were schemes to help young people?
Very unpopular among the youth
What proportion of workforce increased as a result of the Great Depression?
Female proportion
All beliefs of the Nazi Party (5)
Authoritarian
Militarism
Nationalism
Racial beliefs
Social Darwinism
