9) The Impacts Of The Depression

Question 1

What was the Wall Street crash of October 1929

Answer 1

The New York stock exchange experience the worst ever fall in share prices-Black Thursday

Another collapse the following Tuesday, the value of companies had fallen by $10 billion

Many smaller investors lost all their savings, many companies went bankrupt, workers lost their jobs and banks stopped lending and called in their existing loans

Question 2

What was the impact of the Wall Street crash on the German economy

Answer 2

Germany’s economic recovery in the years 1924 to 28 was as a result of American loans which dried up as a result of the Wall Street crash

American banks that had lent money to Germany on short-term loans demanded immediate repayment

When Germany’s economy needed more investment to stimulate the economy money was being withdrawn

USA was also the largest overseas market for German manufactured goods but the depression reduced demand for imported goods in the US

Between 1929 and 1932 Germany export trade are declined by 61% and it’s industrial production fell by 58% of its 1928 level

Question 3

What happened as a result of foreign-trade collapsing and prices falling

Answer 3

Companies had to declare themselves bankrupt and make workers redundant

Companies survived by reducing their workforce and cutting the hours and wages of their workers who continue to work

Question 4

What happened to the German banking system as a result of the great depression

Answer 4

I came into difficulties as customers withdrew their money and outstanding loans were not repaid

Austrian bank in May 1931 collapsed leading to the German banking system crisis

Try to resolve this the government close the banks and the stock exchange for two days to provide the financial system some breathing space only a short-term resolution

Question 5

What was unemployment like after the Wall Street crash

Answer 5

Unemployment increased

By 1930 to about one third of all German workers were registered as unemployed

Estimated that in January 1933 the true number of of unemployed was 8 million

Impact of the depression influenced heavily on the main industrial areas such as the ruhr and main port cities such as hamburg

The civil service were cut severely in the workforce and reductions in the salaries of those who remain

Question 6

What was the impact of the depression on farmers

Answer 6

Had struggled during the golden age

Pushed many of them into serious difficulty

Prices collapsed, exports of agricultural products declined and sales of food fell as Germany had less money to spend

Farmers were forced to give up their phones as the banks demanded repayment of loans.

Unemployment spread to the countryside as farm labourers lost their jobs

Question 7

How was the increasing poverty

Answer 7

The costs of the republics unemployment and welfare benefits quickly overwhelmed the welfare budget

Mood to limit the amount of benefits being paid.

The unemployed were only entitled to state the benefits for a fixed period after they had to apply to local authorities for Relief.

Local benefits were less generous and strictly means tested

Women received less benefits than men and young people less than adults

Towns that depended on a single Industry, the impact was worse off than towns with more diverse economy

Question 8

What were some indicators of poverty

Answer 8

Disease is linked to poor nutrition and living conditions-tuberculosis and Rickets - began to increase after a period of decline

The suicide rate increased and hope for the future disappeared

As unemployed tenants were unable to pay rent they were evicted and shantytowns began to appear on the edges of large cities

Question 9

How did the depression affect young people

Answer 9

Lead to a higher rate of unemployment amongst young people

High rates of unemployment led to a number of consequences

With no jobs and little prospects in the foreseeable future, gangs of young men congregated in public spaces in German towns and cities causing alarm to order, middle-class citizens

Fears that Youth involvement in crime was increasing and that young men were being led into extremist political organisations

Question 10

What were the statistics around juvenile crime

Answer 10

The overall rate of juvenile crime did not increase during the depression, the number of 14 to 25-year-olds accused of crime did increase

Young men charged with theft grew during the depression years but also a significant increase in youths charged with offences against the state and with assault and threatening behaviour

Offences against the state increased participating in violent disorder during political demonstrations

The rise in these offences reflected the deteriorating political situation

Question 11

What was statistics like on political extremism within young men

Answer 11

Increased after the depression

The KPD had success recruiting working-class youths from the wild cliques to join political demonstrations and engage in street battles with their opponents

Paramilitary organisations also set out to recruit unemployed youth. Organisations such as the Hitler youth and the essay offered unemployed boys and young men food, uniforms, shelter and the excitement of fighting. To relieve boredom of unemployment

Youth membership in these organisations was not stable and the majority of young unemployed males still had little or no contact with political extremes

Question 12

What was some schemes to help the unemployed youth

Answer 12

The government priorities were to keep control over expenditure on unemployment benefits and to lessen the damaging effects of unemployment on the Youth

Day centres for Young people where they could participate in work-related activities and socialise

Emergency labour schemes in which unemployed youth are required to undertake unskilled manual labour receiving wages that were below the minimum

Unpopular with young people resulting into waves of strikes for higher wages

Question 13

What was the impact of the depression on women

Answer 13

Female proportion of the total workforce increased during the depression years

Reignited the debate about whether married women should continue to be employed when males were out of work

Right-wing parties achieved some success against double earners when a law was passed which allowed married women civil servants to be dismissed, Limited to central government employees and the economical situation was secure

The reich postal service dismissed 1000 married women

Question 14

What were the consequences of the depression on the political system

Answer 14

Cause the collapse of the grand coalition led by Herman Miller in March 1930

Provided an opportunity for the parties of the extreme left and extreme right

Led to the intensification of political violence

Question 15

Why did the grand coalition collapse

Answer 15

Most broadly based coalition government in the Weimar period representing five political parties from the SPD on the left to the moderate right wing in the form of the DVP

After the Wall Street crash unemployment swore and the rising costs of unemployment benefits put a strain on state finances . With falling tax revenue adding to the problem the state budget was in serious deficit

The coalition was split with the right wanting to reduce unemployment benefits whilst on the left the SPD wanted to protect the levels of benefits and raise taxes

Miller resigned as a result of this issue

Question 16

How was Bruning appointed

Answer 16

Appointed by Hindenburg as he was the leader of the centre party

Hindenburg’s decision was heavily influenced by two key military figures general Groener Who became a defence minister and Schleicher

Question 17

What is the influence of the two key military figures in politics

Answer 17

That the army had began to play a key role in politics

Both men oppose Parliamentary democracy and saw the political crisis as an opportunity to be keen to impose a more authoritarian style of government

President Hindenburg shared the concept for democracy and in Bruning they had a Chancellor who also had authoritarian leaning ideas

Question 18

What was the influence of Bruening is coalition on the Weimer Republic

Answer 18

He excluded the SPD the largest party in the Reichstag which meant that his government did not have enough support in the Reichstag To pass laws

After March 19 30 no government had majority support in the Reichstag and government relied on ruling by presidential decree

Even before Hitler was appointed Chancellor Weimer democracy was effectively dead in the water

Question 19

What were the results of the 1930 election

Answer 19

Extremist parties on the left and right gained the most

The Communist gained 1 million votes mostly from the SPD and 77 seats in the Reichstag.

In 1928 the Nazis had received a May 810,000 votes whereas in September 1930 they gained nearly 6.8 votes they went from 12 to 107 seats in the Reichstag therefore the second biggest party

Question 20

What was the impact of the Nazi party gaining seats in the 1930 election

Answer 20

Had the opportunity to disrupt the Reichstag proceedings

As the Reichstag became unmanageable its proceedings became increasingly irrelevant

Did not meet at all between February and October 1931

Sessions became shorter and more infrequent

Political power shifted to the president and his circle of advisors and also to the streets

Question 21

How significant was political violence

Answer 21

Early years of the Republic between 1919 - 1923 had seen frequent riots, political assassinations and political uprisings

During the years 1924-29, the violence had subsided but not completely disappeared

In the years 1930-33 The levels of political violence increased dramatically. Nazi and communities, the latter with the red front fighters league took their political struggle onto the street

Each side attempted to break up the political meetings of the oppositions and rival matches often degraded into full scale riot. Worse at election times

Question 22

What does Bruening do to decrease the violence

Answer 22

Decided to act and issued a decree in December 1931 banning the wearing of political uniforms, Had little effect on the Nazi SA who change their shirts to white

Then he persuaded Hindenburg to outlaw the SA

But the membership continued to grow and political violence was not bought under control