Depression 1929-32)

Question 1

How did the Wall Street Crash contribute to the depression in Germany?

Answer 1

• US loans and investments immediately dried up. America then demanded repayment of its short term loans
• demand for exports collapsed as other countries reduced their imports and world trade slumped
• without overseas loans and export trade failing, prices and wages fell and bankruptcies increased

Question 2

How far did the Wall Street crash contribute to the depression in Germany?

Answer 2

Even without the Wall Street crash, the German economy would probably have faced a serious depression.

The Wall Street crash was the final push that brought the Weimar economy crashing down

Question 3

Name four effects the depression had on Germany’s economy?

Answer 3

1. National income shrunk by 39% between 1929-32
2. Number of unemployed rose to over 6 million, 1/3 of people of working age were jobless
3. 50,000 businesses went bankrupt
4. 5 major banks collapsed in 1931