2.3 Growth in Nazi support, 1929-32 Flashcards
When did the Wall Street Crash happen?
Thursday 1929
What was the Wall Street Crash?
Falling shares = investments losing value
People rushed to sell them before they fell further
Black Thursday (24th October) - 13mil shares sold - decreased value further
Investors lost $4,000 mil by in a week
What was the first effect of the Wall Street Crash on Germany?
Banking Crisis
Banks were huge investors in stock exchange
People worried they couldn’t access their money because banks lost so much
Rushed to withdraw money - banks ran out
What was the second effect of the Wall Street Crash on Germany?
General economic collapse
Banks demanded return of loans to businesses to pay out money to account holders
Industries had to cut production/shut down
Why did the economic collapse cause unemployment?
Industries had to scale down/close - less workers
German companies selling abroad experienced falling sales -> let workers go
Unemployed couldn’t buy things -> sales fell more -> companies unemployed more people
How much did industrial output fall by between 1928-32?
40%
How much did unemployment increase by between 1929-33
6.1 million
How did increased unemployment affect the unemployed?
Government couldn’t pay benefits so cut them and raised taxes
How did increased unemployment affect savers?
Value of savings crashed in economic crisis
If savers became unemployed, would have nothing to fall back on
How did increased unemployment affect workers?
Taxes went up
Abundance of workers-> employers cut wages
Real wages went down 30% between 1928 and 32
How did increased unemployment affect homeless?
People couldn’t afford rent so became homeless
Shanty towns began to appear
Unemployed became vagabonds and turned violent
24% increase in theft arrests in Berlin
What percentage of the unemployed in Weimar didn’t receive benefits?
27%
What did Bruning do between 1930 and 1932?
Proposed higher taxes to pay for unemployment benefits
Put time limits on benefits to make them affordable
Why did Bruning’s policies displease everyone?
Right-wing, wealthy and middle class people disliked increased tax Left wing and working class people disliked reduced benefits
How did Bruning get his laws passed since he couldn’t get a majority in the Reichstag?
Article 48 - ask president to make emergency laws
