Economic Impact Of The Depression Flashcards
When did New York stock exchange experience worst ever fall in share prices
24th October 1929
What was it known as
Black Thursday
When was the second collapse
29th October
Value of largest American companies fell by 10 billion dollars
Why was Germany impacted by the American Wall Street Crash
1924-1928 largely financed on American loans
After Wall Street crash these loans stopped and American banks that loaned short term payments demanded immediate repayment
American largest overseas market for German goods between 1929-1933 Germany’s export trade declined by 60% and industrial by 58%
Germany now entered deeper depression
What happened to Germany’s foreign trade
Collapsed
What happened July 1931
Government closed the backs and the stock exchange for two days to provide breathing space
Total number unemployed January 1933
8 million
Four main factors affected by the economic impact
Finance
Trade
Industry
Farming
Finance
Loans from USA had stopped as they entered the Wall Street crash and any money that Germany had needed to be repayed back to America
Summer nineteen thirty one German banking system in crisis following collapse of an Austrian banks
Banks closed for two days
Trade
Germany developed strong export trade nineteen twenty four to twenty nine
World trade shrank. This hit Germany badly and their trade declined sixty one percent
Industry
Production fell by fifty eight percent
Prices fell many companies struggled
