Impact of the Depression

Question 1

What was the cause of the Depression ?

Answer 1

• share prices began to fall rapidly therefore people rushed to sell their shares

Question 2

Effects of the Wall Street crash ?

Answer 2

• banks were forced to shut
• companies and individuals forced to repay loans
• many companies were worthless over night
• Significantly, due to their economic problems caused by the crash, USA demanded loans be payed back quickly by other countries.

Question 3

Most significant/ important effect of the Wall Street Crash

Answer 3

• due to their economic problems, USA demanded loans be paid back quickly, this includes Germany

Question 4

Economic impact of the Depression ? ( all reasons )

Answer 4

• finance
• Industry and Trade
• farming

Question 5

Financial impact of the Depression ?

Answer 5

• no investments and loans from America stopped
• American banks demanded their money back quickly
• Large outflow of foreign currency which was thereof unable to pay reparations
• German banking system in iris, following the collapse of an Austrian bank - Banks temporarily closed

Question 6

Industrial and Trade impact of the Depression ?

Answer 6

• USA largest overseas market for German goods stopped during the Depression which severely damaged industry
• Industrial production fell by 58% compared to 1928
• German export trade declined by 61%

Question 7

Farming impact of the Depression ?

Answer 7

• Prices of agricultural products fell
• exports declined
• farmers were left heavily indebted, which demanded repayment of loans

Question 8

Overall social impact of the Depression ?

Answer 8

• Poverty rose due to Depression
• malnutrition of children
• Unemployed couldn’t pay rent therefore shanty towns created - low living standards/conditions.
• Unemployment only received state benefits for a fixed period

Question 9

Types of social impact of the Depression ?

Answer 9

• impact on women
• impact of unemployment
• impact on young people
• impact on middle class

Question 10

Social impact of unemployment ?

Answer 10

• By 1932, 6 million people were unemployed
• Millions of others affected by job losses eg. members of workers’ families

Question 11

Social impact on women ?

Answer 11

• Job losses reignited the debate whether married women should work - “ double earners “
• May 1932, law was passed which allowed married civil servants to be dismissed, the cause of equal rights suffered a serious setback during the depression

Question 12

Social impact on middle class

Answer 12

• Owners of businesses went bankrupt
• many civil servants lost their jobs, those who didn’t suffered wage cuts
• economic insecurity raised fears that they could lose status

Question 13

Social impact on young people

Answer 13

• High rates of unemployment among young people e.g. In Hamburg unemployment among men aged 14-25 was 39%
• Number of young people charged with theft grew
• Involvement in extremist parties - Paramilitary groups like the SA offered young people benefits like food, shelter, uniforms and the excitement of fighting in street battles.

Question 14

Political impact of the Depression ( all reasons )

Answer 14

• Collapse of the Grand Coalition
• Growth in support of extremist parties
• Loss of faith in democracy and old view reemerged

Question 15

Why did the Collapse of the Grand Coalition occur ?

Answer 15

• Rising costs of the unemployment benefits placed a severe train on state finances due to the number of unemployed.
• The right, DVP wanted to reduce unemployment benefits whereas the left, SPD wanted to protect the levels of unemployment benefits and raise taxes

Question 16

Events of the Collapse of the Grand Coalition ?

Answer 16

• The government was in deadlock over the issue of unemployment benefits so in March 1930 Müller resigned.
• His successor was Heinrich Bruning.
  Bruning’s coalition excluded the SPD which meant his government did not have enough support in the Reichstag therefore he had to rely on presidential decree

Question 17

Who appointed Heinrich Bruning and how was the decision influenced ?

Answer 17

-He was appointed by Hindenburg
Hindenburg was heavily influenced by two key military figures : General Groener and General Kurt von Schleicher

Question 18

Impact/ what did it show of the key military figures influencing Hindenburg ?

Answer 18

• was a key indication that the army was beginning to play a key role in politics. They opposed parliamentary democracy and wanted a more authoritarian style of government.

Question 19

What does Bruning relying on presidential decree show ?

Answer 19

• shows that Weimar democracy, even before Hitler was Chancellor, was effectively dead in the water.

Question 20

Who gained the most in the 1930 elections ?

Answer 20

• Extremist parties gained the most in the 1930 elections

Question 21

KPD ( Communists ) statistics of 1930 election ?

Answer 21

• KPD won 77 seats
• gains over 1 million vote

Question 22

NSDAP ( Nazis ) statistics of 1930 election ?

Answer 22

• Gained nearly 6.5 million votes
• won 107 seats in the Reichstag

Question 23

Impact of increased Nazi attendance in the Reichstag ?

Answer 23

• Nazis could now disrupt proceedings in the Reichstag through chanting, shouting and interrupting as they had 107 deputies

Question 24

Why was there beginning to be a loss of faith in democracy and old views remerging

Answer 24

• economic situation, caused by democracy, made people lose faith in democracy
• people believe they needed a strong leader like the Kaiser
• Failing of democracy and the lack of success led to the ‘ stab in the back ‘ theory and November criminals reignited as the Weimar Republic was struggling