Collapse of the Republic Flashcards
What was the Wall street crash?
Occurred in October 1929
It was the collapse of share prices on the NY stock exchange
Due to poor investments, farmers in debt and consumers buying too much on credit
Why was Germany effected so badly by the WSC?
Linked to America financially through Dawes and Young
Fall in national income almost level with the US, which was double that of the UK
How many people were unemployed?
1/3 of the population
Compared with US (1/4) and UK (1/5)
Increased from 1.4 mil 1928 to 5.6 mil in 1932
What happened to banks and businesses?
5 major banks collapsed and 50,000 businesses went bankrupt
What happened to agriculture?
Only 77% of 1913 level, even during 1928 slump were at 138%
What happened to industrial production?
Decreased 1929-32 from 114% to 66% of 1913 level
Fell by 42% 1928-32
What happened to wages?
In 1929 had been 169% of 1913 level, by 1932 it had fallen to 113%
What were the social effects of the depression?
Hunger Homelessness crime Middle classes lost pride; shame Lack of warmth Evictions of tenant farmers
What did Stresemann say to the LoN in 1929?
‘Germany is in fact dancing on a volcano’
How did extremist parties do in elections after the WSC?
NSDAP rose from 12 seats to 230, 1928-32
1 mil to 11mil
KDP rose from 54 to 89
3.2 mil to 6 mil
What happened to Nazis in 1932 elections?
In July got 38% of vote, but fell in November to 33%
What could be linked to NSDAP’s success?
When unemployment was highest was when they did their best
What happened to the moderate parties?
They all lost seats, excluding Z
Why did people vote for extremist parties?
Lack of welfare and benefits available
Poverty, debt and homelessness increased
Less money for housing and education
Lost confidence in gov who looked powerless
Why were Germany effected afterwards?
It was impossible to borrow money, couldn’t print more as that led to inflation and Germany had very few foreign investors
How did the government try to cope?
They cut funding on transport, housing and education
Increased money to welfare services
Reparations payments were suspended in 1931
What happened to the SPD gov?
It collapsed in 1930 because they could not agree on welfare cuts
What did prioritising domestic goods do to the economy?
Helped companies to retain staff, but meant Germans had to pay higher prices for their goods
Who was Muller?
He became chancellor in 1928 as leader of SPD
Formed the grand coalition and got the young plan through the Reichstag
Resigned March 1930 when Hindenburg refused to support him- last gov with working majority was ended
Who was chancellor Bruning?
In July 1930 to get Reichstag support, called elections where extremists made major gains
Had to force a finance bill through the Reichstag using article 48
Had a centre right gov- tolerated by SPD
How many seats did every party gain in July 1930?
SPD= 143 seats KPD= 77 seats NSDAP= 107 seats
What did foreigners do in response to the elections?
Frightened, withdrew 800 mil marks
How many laws and emergency decrees were passed 1930-32?
1930= 98 laws and 5 emergency decrees 1932= 5 laws and 66 emergency decrees
What were some of Bruning’s economic actions?
Pressed for international disarmament- not successful
Used deflationary policies to stop reparations- gov expenditure cuts, tax increases, cut civil servant’s wages- real income fell
Did try to give the peasants land and work