Growth in Nazi Support, 1929-32 Flashcards
Explain why Confidence in the Republic Quickly Decreased
-Confidence started to ebb away on 3 October 1929, when Stresemann had a heart attack and died. The loss of his expertise was a severe blow to the Weimar Republic.
-Later in October 1929, there was a world economic crisis, the Great Depression. In Germany, it caused economic collapse, widespread unemployment and a political crisis.
Describe the Wall Street Crash in the USA
-In October 1929, share prices began to fall on the Wall Street stock exchange in New York.
-Falling shares meant people’s investments fell in value. Worried about losing money, people rushed to sell shares before they fell further.
-On ‘Black Thursday’, 24 October 1929, 13million shares were sold. This panic selling sent prices even lower. Shares worth $20,000 in the morning were worth $1,000 by the ned of the day’s trading.
-Within a week, investors had lost $4 billion.
Describe the Banking Crisis in Germany
-The first effect of the Wall Street Crash on Germany was that it caused a banking crisis. German banks were major investors in shares on the US stock exchange and suffered huge losses.
-German banks lost so much money that German people feared they wouldn’t have access to the money in their bank accounts.
-People rushed to queue up outside banks and get their money out- causing some German banks to run out of cash.
-The German Civil Servant bank, for example, went bust in 1929, meaning many people lost their savings.
Describe the Collapse of German Industry
-The collapse of German banking then caused a general economic collapse in German industry.
-This was because, to pay out the money demanded by their account holders, German and American banks urgently needed cash.
-These banks began to demand the return of money they had lent to business in industry and agriculture.
-Deprived of the money, German farms and industry had to cut back production or even close down completely. The economy collapsed.
Describe the Unemployment Problem in Germany
-When the banks demanded their money back from German industries and farms, they had to scale back production or close. This made workers unemployed.
-The economic crisis was worldwide. German companies that sold their goods abroad found that their sales fell. They had to make even more workers unemployed.
-Workers who were unemployed became poorer. They couldn’t afford to buy as much. This meant that sales fell even further and companies had to make even more workers unemployed.
Describe the Rise in Unemployment and the Fall in Industrial Output
-Between 1929 and 30, there was a 10% fall in industrial output.
-Between 1929 and 31, this was a 30% fall and between 1929 and 32, industrial output fell by 40%.
-In September 1929, 1.3 million were unemployed. By September 1931, this was up to 4.3 million.
-A year later in September 1932, 5.1 million were unemployed.
-By 1933, 6.1 million workers were unemployed. This included 40% of all factory workers, 50% of all Germans between 16 and 30 years old and 60%of university graduates.
Describe the Impact of the Wall Street Crash on the Unemployed, Workers and Savers
-Many had their savings invested in shares. When share prices crashed in 1929, the value of their savings did too. This meant, if they became unemployed, they had no savings to fall back on.
-As the number of people out of work grew, the government became unable to pay unemployment benefits. Taxes were raised and unemployment benefit were cut, causing greater problems.
-Those in work suffered too. Not only did their taxes go up, but with people desperate for work, employers cut wages. Real wages in 1932 were 70% of 1928 levels.
Describe the Impact of the Wall Street Crash on the Homeless
-Many people could no longer afford their rent and became homeless.
-Shanty towns of makeshift houses began to spring up and the unemployed wandered the streets looking for work or food.
-Boredom turned to violence. After a while, fights broke out in the streets between police and roaming bands of young men.
-There was an increase of 24% in arrests for theft in Berlin.
