9) The Impacts Of The Depression Flashcards
What was the Wall Street crash of October 1929
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
What was the impact of the Wall Street crash on the German economy
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When Germany’s economy needed more investment to stimulate the economy money was being withdrawn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
What happened as a result of foreign-trade collapsing and prices falling
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
What happened to the German banking system as a result of the great depression
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
What was unemployment like after the Wall Street crash
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
What was the impact of the depression on farmers
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
How was the increasing poverty
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
What were some indicators of poverty
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
How did the depression affect young people
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
What were the statistics around juvenile crime
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
What was statistics like on political extremism within young men
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
What was some schemes to help the unemployed youth
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
What was the impact of the depression on women
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
What were the consequences of the depression on the political system
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
Why did the grand coalition collapse
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
