1. The Impact of the Great Depression on Germany

Question 1

what impact did it have?

Answer 1

major economic, social, psychological and political impact on Germany

Question 2

what did depression contribute to?

Answer 2

o made possible the demise of democracy in Germany.
o Provided opportunities for groups and indiv. to pursue actions to destroy democracy.

But cannot be argued that there was simple correlation b`etween onset of depression and end of democratic republic.

Question 3

Economic: why was G economy suffering before Great Depression?

Answer 3

as its economic boom relied on overseas investment, partic. US investment since 1924

Question 4

Economic: why did US send funds to Germany?

Answer 4

as interest rates in Germany high and investors will receive solid return on their investment (within 3 months as short term loan)

Question 5

Economic: what was German economy like long b4 depression hit?

Answer 5

Already moving into deep recession whilst ongoing agricultural depression and increasing protectionism around the world.

Question 6

Economic: impact of Immediate end of US funds to Germany and withdrawal of funds from G?

Answer 6

Impact immediate and catastrophic. Business collapsed, bankruptcy became nationwide phenomenon and unemployment levels leapt upwards.

Question 7

Economic: figures of unemployment?

Answer 7

(Ken Webb: Jan 1929: 1 500 000 -> Jan 1933: 6 100 000)

Question 8

Economic: What do the figures of unemployment not show?

Answer 8

do not show all of the figures. There were extremely high levels of ‘underemployment’- ppl who work only 1-3 days a fortnight who therefore not appear in official figures.

Question 9

Economic: why did impact of depression increase?

Answer 9

Many countries moved to protect their own domestic industries -> major increase in tariffs to keep out foreign goods such as Smoot-Hawley Tariff in 1930 and keep home industries afloat, Britain abandoned free trade, devastated economy of Germany as relied on international trade

Question 10

Economic: what actions did Chancellor Heinrich Bruning pursue which led to deeper depression?

Answer 10

March 1930- May 1932: pursued policy of rigid deflation – increase taxation and decrease gov expenditure -> to balance budget and stimulate investment, but what was needed was lower taxation and increase gov expenditure. His policy forced economy deeper into depression.

Question 11

Economic: what happened in July 1931?

Answer 11

suffered major banking crisis as one of biggest banks, the danat, when bankrupt. Led to panic and run on banks as ppl tried to grab their money before other banks fell. Bruning eventually under control but large amounts of capital left country. The credit controls put in place after this led to deeper depression

Question 12

The Social and Pyshcologyical impact: Unemployment in other countries?

Answer 12

Unemployment high in Germany, Britain, France, Australia and US.

Question 13

The Social and Pyshcologyical impact: what impact on working class family?

Answer 13

became destitute - eviction and forced live in shanty towns, health levels decline, children forced to leave school early and family separated as men look for job and escape from responsibilities

Question 14

The Social and Pyshcologyical impact: impact on middle class?

Answer 14

Middle class - fear of going down to proletariat rank. Was seen as humiliating as cant look after family

Question 15

The Social and Pyshcologyical impact: impact on cities?

Answer 15

factory closures, hundreds of men looking for jobs or homeless

Question 16

The Social and Pyshcologyical impact: great depression brought G not only deep economic dislocation but?

Answer 16

deep social distress and deep sense of psychological disillusionment

Question 17

The Social and Pyshcologyical impact: how did Nazi party flourish?

Answer 17

in this atmosphere of national disillusionment that the Nazi Party flourished

Question 18

The Social and Pyshcologyical impact: the Weimer Republic hit by after period of stability during so called ‘Golden Period’, from 1924-1928?

Answer 18

rapid succession of crises

Question 19

The Social and Pyshcologyical impact: 1st crisis related to ruhr?

Answer 19

November 1928, iron and steel employers in Ruhr refused to pay increased wages and illegally locked out their workforce of 220 000 for four weeks. Clear notice of the big business intention to destroy the arbitration system. Indication that powerful business leaders not happy with way they perceived that democracy favoured the workers

Question 20

The Social and Pyshcologyical impact: 2nd crisis with German farmers?

Answer 20

1927, German farmers hit badly by decline in market price of their produce. Time when they took short-term, high-interest loans to modernise their methods of production. Many couldn’t meet mortgage repayments and their properties auctioned off by banks

Question 21

The Social and Pyshcologyical impact: 3rd crisis ‘Black thursday’?

Answer 21

o ‘Black Thursday’, 24 October 1929, onset of great Depression which spread around world. Germany particularly dependent on short term loans from US, so when the ‘crash’ of its stock market caused US banks to call in those loans, it brought Germany economy into deep depression, with many workers laid off.

Question 22

The Social and Pyshcologyical impact: 4th crisis - unemployment

Answer 22

Total of 13 million (20% of popu.) directly affected by increase in unemployment But social welfare system only designed for 800 000 unemployed as expected to receive relief from gov for few months

Question 23

The Social and Pyshcologyical impact: 5th crisis with employers/big businesses?

Answer 23

Social Democrats wanted money from those employed and employers to maintain unemployment benefits. But People’s Party, which represented big business, argued benefits for unemployment should be reduced. These parties members of Hermann Muller’s ‘Grand Coalition’ gov and failure to comprise meant gov forced to resign on March 1930

Question 24

why was Collapse of Muller’s gov significant ?

Answer 24

as marked beginning of the end of parliamentary democracy. His was last gov of Republic able to call on backing of a majority in Reichstag

Question 25

what happened to being able to form coalition gov?

Answer 25

Used to be possible to form coalition gov from moderate political parties but now not. Increasingly, voters been demonstrating preference for extremist parties of both right and left (Communist or Nazi)

Question 26

Who had Vast majority votes in Reichstag elections of July 1932?

Answer 26

Nazis win 37.7% of vote and KPD (communist) 14.3%

combined vast majority vote