IMPACT OF THE DEPRESSION 1928-33 Flashcards
What was the depression?
In the oct -1929, there was a catastrophic fall in value of shares in the New York Stock Exchange
affected Germany because they used American loans
What was the economic impact in terms of finance?
Loans from the USA were stopped and outstanding loans had to be repaid quickly meaning in Germany couldn’t pay reparation by the summer of 1931 - The German banking system was in crisis following the collapse of the Austrian bank banks were temporary closed and taken under government control.
What was the economic impact in terms of trade?
Germany had developed a strong export trade in the year 1924 to 29 that had underpinned economic recovery
during the post 1929 Depression world trade shrank which hit Germany badly.
Germany’s export traded declined by 61% which damage industry
What was the economic impact in terms of industry?
In the year 1929-32 industrial production felt 58% of its 1928 level
prices and many companies made heavy losses.
Main industrial areas in the ruhr were badly hit by factory and mine closures.
What was the economic impact in terms of farming?
The prices of agricultural products fell and exports declined
farmers were heavily in debt to banks which demanded repayments of loans.
Many farmers lost their farm.
How did the depression affect the working class?
Unemployment group
by 1923 approximately one third of german workers were registered as unemployed
doesn’t show the true scale of unemployment as many redundant workers did not register
suggested 8 million
those who kept the job suffered cut the wages
How did the depression affect poverty?
Poverty increased more people became homeless
Shantytowns grew on the edges of large cities
disease linked to poor living conditions
Malnutrition increased, especially among children.
How did the depression affect young people?
Unemployment rate for those under 25 was quite high
juvenile crime increase particularly crimes and violence and more young men joined criminal gangs.
More young men joined extremist political parties and involved in political violence.
How does the depression affect women?
Female proportion of labour forces increased as women were typically cheaper to employ
there was heightened hostility to married women
in May 1932 and new law allowed married female civil servants to be dismissed
How does the depression affect the middle-class?
Owners and business people that went bankrupt lost their livelihoods many cases their homes
many civil servants lost their jobs
economic insecurity further undermined the confidence of the middle-class = lose status
How did the depression affect landowners?
The collapse and agricultural prices hit farmers badly struggled to pay rent and left the countryside.
Landowners lost out as rent went unpaid and they fell into debt.
What was the political impact of the depression?
collapse and government such as the grand coalition
unemployment benefits cut
Allows party such as the Nazis to break through
Nazis became second largest party in the Reichstag
communist this time came to power
Ban SA to reduce street violence BUT continue to grow
eventually Nazis become the largest party with 37.3% of the vote
