Impact of and response to the Great Depression 1929-32

Question 1

Impact of the Great Depression?

Answer 1

• Germany industrial production fell. By the end of 1932 it was about half its 1928 levels
• Unemployment rose and wages fell by 20-30%. Prices also fell so real wages only fell about 14%

Question 2

Government response to the Great Depression?

Answer 2

• Without Stresemann parties in the Grand Coalition government were arguing not co-operating. Failed to cope with depression because it could not make decisions or act quickly
• Coaliton collapsed and was replaced in 1930 by one led by Chancellor Bruning.

Question 3

What were Bruning’s policies?

Answer 3

• Cuts in government spending especially on social welfare
• Wage cuts
• Higher taxes

Question 4

How were Bruning’s policies enacted?

Answer 4

• Initially policies were rejected by the Reichstag. Reluctantly Hindenburg who agreed with Brunings policies went back to government by decree in July 1930 in order to put Bruning’s policies into practice.

Question 5

Did Bruning and the governments policies work?

Answer 5

• Brought deflation but avoided devaluing the currency which he feared would bring inflation or even hyperinflation
• As Germany’s depression deepened it was clear to all countries that it would not be able to make payments for reparations or loans.
• 1 July 1931, the Hoover Moratorium - suspended the need for Germany to pay back loans or to pay interest on them for a year.

Question 6

What did Bruning do in December 1931?

Answer 6

• Another emergency decree that introduced wage cuts , rents and tax rises.
• Also said reparations would not be paid for the next year.

Question 7

Impact of this?

Answer 7

• Bruning’s policies in the years 1930-32 didn’t work , they simply deepend the recession. Industrial production fell , prices and exports fell all by around 50%. Unemployment rose to its highest level ever in 1932
• Bruning was replaced by von Papen

Question 8

What did von Papen do?

Answer 8

• Introduced some tax concessions and subsidies for businesses that created new jobs and produced some economic improvement

Question 9

What were the challenges in 1932 that disrupted response to economic problems?

Answer 9

• Government was caught up in political problems that made it hard to focus on the economy and produce a coherent policy
• Dec 1932 : Chancellor changed again

Question 10

Was the Weimar governments response to economic problems a failure?

Answer 10

The fact that coalition government had failed and government was increasingly by decree made the Weimar government look a failure

Question 11

How did the economic policies imposed by decree affect the governments popularity?

Answer 11

• Policies imposed by decree were hard on the German people and also didn’t seem to be working making this system of government which had been intented only for emergencies very unpopular
• Hindenburg stayed popular , the ever changing chancellors and ministers were held responsible for the problems

Question 12

How did the economic problems and the governments inability to deal with them affect German politically?

Answer 12

Led to a rise in the popularity of more extreme parties which led to the rise of the Nazis and Hitler