Collapse Of Weimar Republic - Economic Depression Flashcards
What happened in June 1931
1000 million marks left Germany to repay loan
In result 5 major banks collapsed leading to thousands of Germans loosing their savings
Germany’s national income
Dropped to 39% from 1929-32 putting them on par with USA who had a 40% in the same time period
Industrial crisis
50,000 businesses closed between 1930-32
Worldwide growth of protectionism caused a sharp decline in world trade meaning businesses cut back production
Effects of the industrial crisis
Serious unemployment leaving them in a vicious circle as economy dependent on capital goods
39% drop in industrial production between 1929-32
Employment
Over 6 million unemployed at start of 1932 and by 1933 1 in 3 were in employed
Felt rejected by gov so turned to radical left or right
Blue and white collar workers hit hard by depression and faced a drastic wage reduction
As a result fall in demand for goods and small traders went out of business
Agriculture
Prices fell quickly
Rye exports almost stopped completely causing panic in farmers
Before crash farmers already rioting over rising interest rates and low pay for produce but worsened in 1930 especially in East Prussia
1932 18,000 farmers bankrupt
How did the government create discontent
They reduced public spending
Spent less on service and infrastructure projects
1/3 reduction in war victims’ pensions
William Carr
Inconceivable that Hitler could have come to power without the effects of the world economic crisis
Ian Kershaw
“The future for Weimar looked promising and without the onset of world economic crisis from 1929 it might have remained so.”
Detlev Peukart
The republic had been heading for a downturn before the crisis of 1929, and the end of the republic was not the product of a single cause
