7. The wallstreet crash(1929) and the Great Depression (1929-1933) unfinished Flashcards
Who was Gustav Stresemann?
Between 1923 and 1929 the influential Weimar politician Gustav Stresemann had helped to bring greater economical stability to Germany. However this stability was not based on firm foundations much of Germany’s new wealth came in the form of American short-term loans. As long as the American economy did well, so would Germany’s. But if Americas economy were to collapse, the results for Germany would be catastrophic. Stresemann recognised this when he stated that Germany was ‘dancing on a volcano’
Describe why the economic stability enjoyed by Germany between 1923 and 1929 was not based on firm foundations
In October 1929, an economic disaster struck America. At the New York stock exchange on wallstreet, the value of the American shares collapsed, this event became known as the Wall Street crash. Many countries relied on American loans so the crash led to a worldwide depression, known as the Great Depression
Explain who suffered most from the Great Depression
Many countries suffered in the Great Depression, but none more so than Germany. As American businesses were collapsing, American business men and banks decided to call in loans they had given to Germany under plans such as the Dawes plan 1924. This meant they could demand that Germany pay back all the money she borrowed immediately. This led to thousands of German businesses going bankrupt. Many us companies had invested in Germany. They now had no choice but to withdraw their investments, leading to more German factories and businesses having to close.
Explain unemployment figures in Germany during the Great Depression
The number of unemployment in Germany rose rapidly. By September 1930 over 3 million Germans were unemployed 6 reaching reaching 6 million by the end of 1932. That meant that 1/3 of the entire German workforce was unemployed. 40% of all factory workers were unemployed by 1932. Over half of Germans aged 16-30 were unemployed by 1933. As a result many Germans could not pay their rent
and became homeless. 60% of all university students could not find a job. Farmers had been doing badly prior to the depression, prices of their products had been falling since 1925 but now their debts increased even more. Many businesses closed as a result of people having less money to spend on goods. Thousands of children and old people died of malnutrition and hunger related diseases. Wages were cut and taxes increased.
Explain the political collapse
The scale of unemployment problems totally overwhelmed Germany’s unemployment insurance scheme, the government could only afford to provide unemployment benefits to 30% of those who needed it leaving many relying on emergency hand outs. Soup kitchens were set up to feed those who couldn’t feed themselves. Chancellor Hermann Muller wanted to raise unemployment benefits and cut taxes, but could not get a majority in the Reichstag and in March 1930 resigned.
An election called for September 1930 using proportional representation saw the nazis increase their number of seats from 12 in 1928 to 107
The communists also increased from 54 to 77
This increase in support can be explained by the fact Germans blamed the government for the economic crisis
